Today, Stock futures slumped on Wednesday as the Nasdaq recorded a fresh record high and closed above the 17,000 barrier for the first time.
Top stock gainers
Shares of Robinhood Markets (NASDAQ:HOOD) climbed over 4% after announcing a share repurchase program of up to $1B, of its class A common shares over a period of two to three years, beginning in the third quarter.
Top stock losses
Despite positive Q1 earnings and forecast, CAVA Group (NYSE:CAVA) shares slumped 4% after the firm reported a 1.2% decrease in guest traffic and restaurant-level profit margin, down 20 basis points Y/Y. The business predicts FY2024 restaurant comparable sales growth of +4.5% to +6.5%, compared to the consensus estimate of +4.5%, and boosted the adjusted EBITDA outlook to a range of $100M to $105M from a prior outlook of $86M to $92M.
Following Q4 results, Faraday Future Intelligent Electric (NASDAQ:FFIE) shares plummeted more than 26% as the electric vehicle company retracted its production target forecast for 2024, blaming current market conditions and current levels of funding.
American Airlines’ (NASDAQ:AAL) stock plummeted 7% as the carrier decreased its Q2 adjusted EPS expectation to $1.10–$1.15, down from its earlier guidance of ~$1.15–$1.45 and the consensus of $1.27. The operating margin is estimated to be between 8.5% and 10.5%, down from the earlier view of ~9.5%–11.5%. The company’s TRASM is predicted to fall by 5%–6% Y/Y, compared to the previously estimated decline of 1%–3%, while CSM, excluding fuel and net special items, is expected to be flat to +1% Y/Y, compared to an earlier 1%–3% growth forecast. Fuel prices are anticipated to vary from $2.70 to $2.80 per gallon (estimated to be between $2.75 and $2.95).
Premarket
Gainers
Dick’s Sporting Goods (NYSE:DKS) stock climbed 8.2% after the retailer upped its full-year estimate after customers spent more on new sneakers and sporting gear at its big-box locations.
Marathon Oil (NYSE:MRO) stock climbed 7.4% after energy giant ConocoPhillips (NYSE:COP), down 3.7%, agreed to buy the Houston-based company, in an all-stock deal worth $17.1 billion that would bolster the company’s shale holdings.
Robinhood (NASDAQ:HOOD) stock increased 2.1% after the trading platform disclosed a stock repurchase of $1 billion.
BHP Group (NYSE:BHP) ADRs climbed 1.9% as the mining giant asked for additional time to have negotiations with Anglo American (JO:AGLJ), subsequently denied by Anglo, as a deadline for a formal bid loomed large.
Nvidia (NASDAQ:NVDA) shares climbed 0.4%, continuing to surge after the tech giant’s huge 7% gains the previous day.
Losers
American Airlines (NASDAQ:AAL) stock plummeted 8.8% after it trimmed its second-quarter earnings guidance on a more depressed outlook on travel demand.
CAVA Group (NYSE:CAVA) stock slumped 3.4% after the Mediterranean food chain announced a decline in customer traffic in the first quarter, overshadowing the strengthening of its annual sales projection.
Salesforce (NYSE:CRM) shares declined 0.5% ahead of the announcement of the business software group’s fiscal first quarter earnings after the bell, with Wall Street likely on the watch for updates on the business software group’s Data Cloud subsidiary.
Stocks In Focus
Wednesday saw another major consolidation in the U.S. energy sector as ConocoPhillips (COP) acquired Marathon Oil (MRO) in an all-stock transaction worth $22.5B, including $5.4B of net debt. Marathon Oil (MRO) rose 11% pre-market, while ConocoPhillips (COP) fell roughly 1%. By adding over 2B barrels of resources to its U.S. onshore portfolio, ConocoPhillips (COP) will benefit immediately. ConocoPhillips (COP) also announced a 34% dividend increase to 78 cents per share in Q4 2024, independent of the acquisition.
Class A Chewy (CHWY) shares rose almost 14% before the bell. Plantation, Fla.-based online pet food, product, and supply store surpassed Q1 top- and bottom-line expectations and announced a stock buyback. Top boss Sumit Singh said “Chewy’s (CHWY) value proposition” was continuing “to resonate” with customers as quarterly net sales grew 3.1% Y/Y to $2.88B. A $500M class A and/or class B share repurchase program was also approved by the board.
Salesforce (CRM) shares will be watched after the closing bell for FQ1 2025 results. Wall Street forecasts $2.37 per share on $9.15B in revenue for the Dow 30 component. Investors will closely monitor the company’s customer relationship management segment to determine corporate software demand. Salesforce’s (CRM) data segment and Einstein Copilot, which Citi reported “positive demand signals” for earlier this month, will also be discussed.
HP (HPQ) will release FQ2 2024 earnings after hours, attracting attention. Wall Street anticipates HP (HPQ) to earn 81 cents per share on $12.61B in revenue. Its PC sales and demand statements will be widely scrutinized as the global PC market recovers from an inventory correction cycle this year. Investors will also watch AI-capable PC comments. Canalys predicted in March that 18% of global PC shipments will be AI-capable by 2024.
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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.