Today, Stock futures crept up early Wednesday ahead of important inflation data, as market players sought indications on the Fed’s next rate move.
Top stock gainers
Delta Air Lines (DAL) shares rose 5% after reporting Q1 earnings that exceeded expectations and provided strong forecast for the current quarter. The airline indicated that robust travel demand is expected to continue in the coming quarter, with overall revenue growth of 5% to 7% compared to a year ago, with TRASM flat to -2%. Delta President Glen Hauenstein stated that, within this expectation, all regional organizations are likely to achieve unit revenue that is about level from last year, with the exception of Latin, which is expected to see a double-digit loss owing to lapping outstanding performance and sustained profitable network investment.
PriceSmart (PSMT) shares increased 5% following good second-quarter earnings and the company’s intention to pay additional cash to shareholders via a special dividend. The warehouse club made $1.31 per share, up from $1.25 the previous year, thanks to a 13.1% increase in revenues. Comparable net merchandise sales were 8.8% higher year on year, while adjusted EBITDA climbed 6%. PriceSmart will issue a special dividend of $1 per share to shareholders of record on April 30, and it intends to launch its ninth warehouse club in Costa Rica in early 2025.
The biggest stock loses
Top stock losses
SMART Global Holdings (SGH) shares fell more than 7% after the business disclosed mixed second-quarter earnings. Furthermore, the business offered a FQ3 sales estimate range of $275 million to $325 million, in line with the consensus of $310.25 million, and adjusted EPS of $0.30 +/- $0.15, compared to the consensus of $0.29.
Premarket
Gainers
Delta Air Lines (NYSE:DAL) shares jumped 4.3% after the airline provided an enthusiastic view for the current quarter, after first-quarter results that above expectations due to strong travel demand.
PriceSmart (NASDAQ:PSMT) shares increased 3.9% after the top operator of membership warehouse clubs in Latin America and the Caribbean announced a strong fiscal second quarter.
Alibaba’s (NYSE:BABA) ADRs increased 2.9% after Chinese media reported that co-founder Jack Ma endorsed the e-commerce giant’s present leadership in an internal message.
Albemarle (NYSE:ALB) shares jumped 2.3% after BofA Securities raised its rating on the lithium miner to ‘buy’ from ‘hold’, citing the belief that lithium pricing, which reached a trough in the first quarter of 2024, is set to rebound.
Moderna (NASDAQ:MRNA) shares increased 0.6%, adding to the previous session’s 6% rise, after the company released cancer-vaccine data indicating that the medicine may be effective in indications other than melanoma.
Losers
WD-40 firm (NASDAQ:WDFC) declined 2.6% after the home goods firm announced lower-than-expected revenue in its fiscal second quarter and gave cautious outlook for the year.
Stocks in focus
Monday.com (MNDY) fell nearly 6% pre-market after Citi downgraded it to Neutral from Buy. Recent partner chats and web traffic checks suggested declining demand with a subdued price hike, the brokerage said. Israel-based Monday.com (MNDY) provides cloud-based work management. Citi thinks market forecasts for price hikes’ impact on 2024 growth may be overblown. Monday.com (MNDY) is rated Buy by Wall Street and SA Authors and Quant by Seeking Alpha. Hold.
U.S.-listed Alibaba (BABA) shares rose 2% before the bell. The move followed media reports that Alibaba co-founder Jack Ma had written a lengthy note to staff in an internal business forum. Ma supported Alibaba’s (BABA) restructuring and concentrated on AI. After three years out of the spotlight, the billionaire’s recent post was his longest on the company’s intranet in five years.
NVDA stock fell over 2% before the market opened, continuing a previous decline. Nvidia (NVDA) shares fell 10.2% to $853.54 on Tuesday from a record closing high of $950.02 on March 25. The stock has entered correction. Bank of America says the stock dip is “nothing new for investors and does not mean the fundamentals have changed.” The firm also stated that “periods of consolidation” in Nvidia (NVDA) shares frequently lead to significant swings.
Pre-market Hexcel (HXL) shares fell almost 10%. On Tuesday, the developer of advanced composite materials for aerospace, defense, and industrial markets named Spirit AeroSystems (SPR) former CEO Tom Gentile as its new president and CEO starting May 1. The move prompted Bank of America to downgrade Hexcel (HXL) stock to Underperform from Neutral. “We note the surprising nature of this announcement as the company did not communicate to the market that it was seeking new leadership,” the brokerage stated. “As such, we think it could be poorly received by the market,” BofA said.
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After reporting 8% Y/Y subscription revenue growth in 4Q24, DocuSign (NASDAQ:DOCU) shares rose 10%. Electronic signature business predicts 1Q25 revenue of $704M to $708M, above analysts’ $699.1M forecast. DocuSign expects sales of $2.91B to $2.92B this year, with consensus of $2.91B. Customer adoption of Contract Lifecycle Management and eSignature in StateRAMP-authorized environments was also emphasized by the organization.
MongoDB (NASDAQ:MDB) shares fell 8% after exceeding Q4 profit and sales forecasts owing to its dovish FY2025 outlook. MongoDB expects revenues of $436M to $440M in Q1, below the average expectation of $449.08M. Below the estimate of $0.61, non-GAAP EPS is expected to be $0.34–$0.39. The business estimates FY2024 sales between $1.9B and $1.93B, below the average of $2.03B. Unlike the consensus of $3.22, non-GAAP EPS is expected to be $2.27 to $2.49.
Marvell Technology (NASDAQ:MRVL) shares fell over 7% after solid Q4 earnings due to a dismal Q1 guidance. The business predicts Q1 sales of $1.15B, plus or less 5%, behind analysts’ $1.36B. Marvell predicts adjusted gross margins of 62% to 63% and adjusted earnings of $0.18 to $0.28 per share, significantly below the average forecast of $0.40. Marvell announced $3B in stock buybacks.
Despite a 5.7% Y/Y rise, Costco Wholesale’s NASDAQ:COST shares plummeted roughly 4% as its FQ2 earnings reports fell short of the top-line estimate. Comparable sales increased by 5.6% during the quarter, above the 5.1% estimate.
MongoDB (NASDAQ:MDB) shares fell 8% after exceeding Q4 profit and sales forecasts owing to its dovish FY2025 outlook. MongoDB expects revenues of $436M to $440M in Q1, below the average expectation of $449.08M. Below the estimate of $0.61, non-GAAP EPS is expected to be $0.34–$0.39. The business estimates FY2024 sales between $1.9B and $1.93B, below the average of $2.03B. Unlike the consensus of $3.22, non-GAAP EPS is expected to be $2.27 to $2.49.
Marvell Technology (NASDAQ:MRVL) shares fell over 7% after solid Q4 earnings due to a dismal Q1 guidance. The business predicts Q1 sales of $1.15B, plus or less 5%, behind analysts’ $1.36B. Marvell predicts adjusted gross margins of 62% to 63% and adjusted earnings of $0.18 to $0.28 per share, significantly below the average forecast of $0.40. Marvell announced $3B in stock buybacks.
Despite a 5.7% Y/Y rise, Costco Wholesale’s NASDAQ:COST shares plummeted roughly 4% as its FQ2 earnings reports fell short of the top-line estimate. Comparable sales increased by 5.6% during the quarter, above the 5.1% estimate.