Market Summary
The S&P 500 remained relatively unchanged, while the Nasdaq Composite (COMP) saw a slight decline of 0.2%. The Russell 2000 index reported a 0.5% decrease. In contrast, the Dow Jones Industrial Average (DJIA) experienced a gain of 0.4%, rising by 172 points. Market movements were confined within narrow ranges, starting off low but slightly recovering, although the overall market sentiment was somewhat negative.
Stock Performance
Uber (UBER, Financial) underperformed significantly in the S&P 500, dropping by 5.7% after earnings fell below expectations. Despite this, the S&P 500 industrials sector managed a small gain. Other sectors such as information technology, financials, and utilities also ended the day positively, whereas real estate and materials sectors faced declines.
Positive earnings led to gains in several stocks including Lyft (LYFT, Financial), which rose by 7.1%, Arista Networks (ANET, Financial) which increased by 6.5%, Reddit (RDDT, Financial) which gained 4.1%, and Anheuser-Busch InBev (BUD, Financial) which went up by 4.0%.
Market Indicators
Treasury yields saw a slight increase following a $42 billion 10-year note sale which attracted less interest compared to a previous auction. The 10-year note yield rose by three basis points to 4.49%, and the 2-year note yield increased by one basis point to 4.84%.
Economic Data
The weekly MBA Mortgage Applications Index rose by 2.6%. Wholesale Inventories dropped by 0.4% in March, aligning with expectations. The EIA Crude Oil Inventories report indicated a decrease of 1.36 million barrels.
Looking Ahead
Key economic reports scheduled for Thursday include the Weekly Initial Claims, with an expected consensus of 213,000, and the Weekly Natural Gas Inventories report.
Global Markets and Commodities
In international markets, Europe showed modest gains with the DAX, FTSE, and CAC indices up. Asian markets, however, experienced declines. Commodity prices varied with crude oil increasing, while natural gas and copper posted slight declines. Gold and silver prices showed minor adjustments.
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Today's News
Shares of Zscaler (ZS, Financial) fell over 4% as the company investigates a potential data breach after a threat actor claimed to have accessed unauthorized information. Zscaler emphasized its commitment to vigorously continue the investigation and update the public as necessary.
Energy Transfer (ET, Financial) reported a Q1 GAAP EPS of $0.32, missing estimates by $0.07, although its revenue of $21.63B, which is up 13.8% Y/Y, beat expectations by $720M. The company also raised its full-year 2024 Adjusted EBITDA forecast due to new growth projects and the recent acquisition of NuStar Energy.
Medical Properties Trust (MPW, Financial) saw its shares rise by 4.4% after providing $75M in debtor-in-possession financing to its largest tenant, Steward Health Care, which has filed for Chapter 11 bankruptcy.
Applovin (APP, Financial) reported a strong Q1 with a GAAP EPS of $0.67, surpassing expectations by $0.12, and a revenue increase of 48.2% Y/Y to $1.06B. The company provided optimistic guidance for the upcoming quarter, expecting continued revenue growth and high EBITDA margins.
Robinhood Markets (HOOD, Financial) exceeded Q1 expectations with a GAAP EPS of $0.18, boosted by significant increases in transaction-based revenues, particularly from cryptocurrencies and options. The company now boasts 23.9 million funded customers, reflecting robust growth in user engagement and assets under custody.
Arm Holdings (ARM, Financial) outperformed in Q4 with a Non-GAAP EPS of $0.36, beating by $0.06, and revenue up 46.6% Y/Y to $928M. The company provided an upbeat annual guidance, anticipating continued revenue growth and earnings expansion.
SolarEdge Technologies (SEDG, Financial) faced a challenging Q1, with a Non-GAAP EPS of -$1.90, missing expectations, and a significant revenue decline of 78.3% Y/Y. However, the company forecasts slight improvements in the upcoming quarter.
Duolingo (DUOL, Financial) impressed with a Q1 GAAP EPS of $0.57, beating estimates significantly, driven by a sharp rise in paid subscribers and daily active users. The company updated its full-year guidance positively, reflecting strong demand for its educational services.
The Trade Desk (TTD, Financial) enjoyed a post-earnings boost, with revenues growing 28% to $491M, driven by robust demand for premium inventory on the open internet. The company's adjusted EBITDA also saw a substantial increase, affirming its strong market position.
HubSpot (HUBS, Financial) reported a Q1 Non-GAAP EPS of $1.68, outdoing expectations, with revenues up 23.1% Y/Y to $617.41M. The company anticipates continued revenue growth and operational efficiency in the upcoming quarter.
Blue Bird (BLBD, Financial) shared optimistic Q2 results, with an Non-GAAP EPS of $0.89 beating forecasts, and a significant revenue increase. The company has raised its FY2024 guidance and long-term profit outlook, expecting substantial growth in EBITDA margins and revenues.
PennantPark (PFLT, Financial) reported a Q2 Core net investment income per share of $0.31 with total investment income rising significantly compared to the previous year, indicating strong financial performance.
Airbnb (ABNB, Financial) saw its shares dip post-market despite reporting a Q1 earnings beat, as the guidance provided may not have met investor expectations. The company reported strong growth in bookings, particularly in group travel, which remains a key growth segment.
Plug Power (PLUG, Financial) experienced a decline ahead of its Q1 earnings report, with concerns about its ability to manage costs and achieve future profitability despite dispelling earlier "going concern" fears.
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