Today, Stock futures rose slightly on the final trading day of the second quarter, as investors eagerly awaited U.S. inflation data.
Top stock gainers
After Nokia (NOK) announced a $2.3B acquisition of Infinera (NASDAQ:INFN), its stock rose 25%. Nokia’s North American optical networking business will benefit from this acquisition. The purchase is priced 28% higher than Infinera’s June 26th closing share price and is expected to completion in the first half of 2025. Nokia intends to grow its Optical Networks business by 75% with this acquisition.
After a CNN flash poll showing the Republican candidate defeating US President Joe Biden in the first presidential debate, Trump Media & Technology Group Corp. (NASDAQ:DJT) shares rose nearly 6%. SSRS polled registered voters who watched the debate and found 67% thought Trump did better than Biden and 33% said Biden did.
Top stock losses
Nike (NKE) shares fell over 14% after disappointing FQ4 earnings as the firm highlighted macroeconomic risks that will impact fiscal 2025 and China’s weakening. Nike (NYSE: NKE) now expects FY25 sales to shrink by mid-single-digits, with the first half of the year seeing a high-single-digit reduction. But the company anticipates gross margin to rise 10-30 basis points in FY25. Nike expects Q1 revenue to drop 10% and gross margin to match full-year estimates.
After surpassing FQ1 projections, Accolade (NASDAQ:ACCD) shares plummeted 26% as guidance fell short of analysts’ expectations. The health technology business predicts Q2 revenue of $104M to $106M, below the consensus of $113.23M, and an adjusted EBITDA loss of $8M to $10M, higher than the anticipated loss of $5.9M. The business forecasts FY2025 revenue between $460M and $475M, vs. $490.10M, and adjusted EBITDA between $15M and $20M, vs. $16.7M.
Premarket
Gainers
Infinera (NASDAQ:INFN) stock rose 18% after Nokia (HE:NOKIA) announced plans to buy the U.S. optical networking gear maker for $2.3 billion, putting the Finnish company on track to profit from the huge investment in data centers to support artificial intelligence.
A European Union medical regulator advisory group gave Moderna (NASDAQ:MRNA)‘s respiratory syncytial virus (RSV) vaccine a good opinion for individuals 60 and older, sending the stock up 1.1%.
After Warren Buffett announced a $5.3 billion donation of Berkshire Hathaway (NYSE:BRKa) shares to five foundations, the stock climbed 0.3%.
Losers
Accolade (NASDAQ:ACCD) stock plunged 29% after the healthcare business provided poorer than expected quarterly and fiscal year estimates.
Trump Media & Technology Group (NASDAQ:DJT) shares soared 11% after CNN’s flash poll showed the Republican nominee topped Joe Biden in Thursday’s first presidential debate.
Nike stock plunged 15% as the sportswear company predicted a 10% drop in quarterly revenue. Sales in the current fiscal year are likewise expected to fall by mid-single digits.
Alphabet (NASDAQ:GOOGL) stock declined 0.4% after Reuters reported that Italy wants Google to pay €1 billion ($1.07 billion) in unpaid taxes and penalties seven years after the U.S. corporation won a landmark tax fight with Rome.
Stock in Focus
Plug Power (PLUG) was among the most actively traded stocks before the bell, rising almost 6%. The hydrogen fuel cell maker stated its Woodbine, Ga. factory would receive a federal tax credit. It claimed it “intends to recognize the benefits of the Inflation Reduction Act’s (IRA) Section 45V Credit for the Production of Clean Hydrogen (PTC) in its forthcoming quarterly financial reports.” The Act approved by President Biden gives domestic clean hydrogen producers a $3/kg production credit from the PTC.
Apple (AAPL) was among the most actively traded stocks before market open, rising about 1%. China Academy of Information and Communications Technology data showed iPhone shipments in China rose 40% in May, according to Bloomberg News. Apple (AAPL) investors remain focused on Asia after iPhone shipments fell 37% in the first two months of this year. See also: UK regulator extends Apple, Google app store rules probe.
Pre-market trading saw Alphabet’s class A (GOOGL) and class C (GOOG) shares fall roughly 1% each. Rosenblatt Securities reduced the IT giant’s stock rating to Neutral from Buy, citing transition risk in several areas. The brokerage predicted a “transitionally” negative impact on search ad revenue from artificial intelligence and “nascent” market share loss to Microsoft’s (MSFT) Bing.
Before the opening bell, Citi commenced coverage with a Sell rating and $11 price target, dragging down Xerox (XRX) stock by more than 3%. The firm claimed the U.S. printer maker was restructuring due to “flat-to-declining revenues” and that its shift to the specialized digital and information technology services sector will take time and money. “Post-pandemic, it remains difficult for investors to have confidence in Xerox’s (XRX) combination of continued restructuring and cost-cutting,” said Citi.
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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.