On Thursday, the stock market showed a mixed performance in futures trading following a day where the S&P 500 and Nasdaq Composite reached record highs. The previous day’s optimism stemmed from a U.S. inflation report that was lower than expected, easing concerns about rapid interest rate hikes by the Federal Reserve. However, as the Fed kept interest rates unchanged and projected only one rate hike for 2024, markets retreated slightly towards the end of the trading session.
Tesla (TSLA) emerged as a significant mover, with its stock climbing 6.4% in premarket trading. Shareholders were voting on CEO Elon Musk’s substantial $56 billion compensation package, which includes about 300 million stock options tied to performance metrics. Additionally, Tesla announced plans to potentially increase prices for its Model 3 in Europe in response to new tariffs on electric vehicles manufactured in China, expected from the EU.
Broadcom (AVGO) experienced a remarkable surge of 14% after surpassing analysts’ expectations in its fiscal second-quarter earnings report. The company attributed its strong performance to robust demand for chips related to artificial intelligence, as well as contributions from VMware, which Broadcom acquired in late 2023. Broadcom also announced a 10-for-1 stock split and raised its fiscal-year revenue guidance, further boosting investor confidence.
Apple (AAPL) saw modest gains in premarket trading following consecutive days of closing at all-time highs. Despite this, Apple narrowly missed overtaking Microsoft in terms of market capitalization by the end of the trading session, though it briefly achieved this milestone intraday. The competition between the two tech giants continues to draw attention from investors.
Dave & Buster’s Entertainment (PLAY) reported fiscal first-quarter revenue of $588.1 million, which fell short of Wall Street estimates. The company also recorded a wider-than-expected decline in same-store sales of 5.6%, marking the fifth consecutive quarter of diminishing comparable-store sales. As a result, Dave & Buster’s stock tumbled by 9.4% in response to the disappointing figures.
Torrid Holdings, a clothing retailer, reported improved traffic and effective inventory management strategies that resulted in higher profits for its fiscal first quarter. The positive performance lifted Torrid’s stock by 6.5%, reflecting optimism among investors about the company’s operational efficiencies and strategic execution.
Oxford Industries (OXM), known for brands such as Tommy Bahama and Lilly Pulitzer, adjusted its fiscal-year sales and profit outlook downward due to more cautious consumer behavior than initially anticipated. This revision led to a 4% decline in its premarket trading stock price as investors reacted to the revised guidance.
Investors were eagerly awaiting earnings reports after market close from Adobe (ADBE) and RH (RH), which had the potential to influence market sentiment based on their financial performance and outlook.
Signet Jewelers (SIG) reported adjusted earnings of $1.11 per share for the first quarter, surpassing expectations of 85 cents per share. However, the company projected second-quarter same-store sales to decline between 2% and 6%. Despite the earnings beat, Signet’s stock declined by 0.9% in premarket trading as investors digested the mixed outlook for upcoming quarters.
Kimberly-Clark (KMB) received a significant boost of 1.9% to $137.75 after receiving a double upgrade to Buy from Underperform at BofA Securities. Analysts also raised their price target on the consumer goods company, highlighting increased confidence in Kimberly-Clark’s ability to deliver positive results going forward.
Overall, the market exhibited a complex blend of reactions to corporate earnings reports, strategic announcements, and broader economic factors. Investor sentiment continued to be influenced by ongoing developments in inflation, interest rates, and company-specific performance metrics, highlighting the dynamic nature of today’s financial markets.