The markets saw mixed activity as corporate earnings continued to steer investor sentiment. Nasdaq 100 index contracts climbed 0.7%, boosted by upbeat earnings in the tech sector, while the S&P 500 edged higher following its 55th record high for the year. Meanwhile, the dollar gained strength, and 10-year Treasury yields rose to 4.27%, the highest level in a week.
Here’s a breakdown of the major earnings movers:
Salesforce (CRM)
Salesforce shares surged over 12% after the enterprise software giant exceeded third-quarter revenue expectations. The company reported $9.44 billion in revenue, surpassing the $9.35 billion forecasted by analysts. Subscription revenue also outperformed projections, underscoring the company’s robust business model and its ability to weather economic headwinds.
Dollar Tree (DLTR)
Discount retailer Dollar Tree posted a 4% stock gain on the back of stronger-than-expected third-quarter results. The company reported earnings of $1.12 per share, beating estimates of $1.07, with revenue hitting $7.56 billion against an expected $7.44 billion. The announcement of CFO Jeff Davis stepping down added a layer of intrigue to the company’s future outlook.
Foot Locker (FL)
Foot Locker shares plunged nearly 15% after the sneaker retailer missed earnings and revenue estimates. The company also slashed its full-year sales and earnings guidance, citing softer demand outside peak selling periods and a more promotional retail environment. This steep decline reflects the challenges faced in navigating shifting consumer behaviors and competitive pricing pressures.
Marvell Technology (MRVL)
Marvell Technology shares jumped almost 13% following a stellar third-quarter performance and optimistic revenue guidance. Wall Street analysts, including JPMorgan, responded positively, with price targets reflecting as much as 36% upside. Analysts highlighted the company’s AI and cyclical tailwinds as key drivers, anticipating a multi-quarter period of positive earnings revisions.
General Motors (GM)
Shares of General Motors slipped 1% after the company disclosed a restructuring plan for its joint venture operations with SAIC Motor Corp. in China. The overhaul is expected to cost over $5 billion, signaling GM’s effort to revitalize its strategy in one of the world’s most competitive auto markets.
Campbell Soup (CPB)
Campbell Soup faced a 3% decline in its stock price after its quarterly net sales fell short of expectations. The company also announced a leadership change, with Mick Beekhuizen stepping in as the new CEO. Investors appear cautious as the iconic food brand navigates leadership shifts and evolving market conditions.
Key Takeaways
- Positive tech earnings continue to support the Nasdaq’s rally.
- Discount and tech sectors showed resilience, while retail and food stocks faced challenges.
- Treasury yields and a strengthening dollar hint at broader economic trends influencing investor strategies.
Earnings season is proving to be a rollercoaster ride, with winners and losers emerging across industries. As markets digest these developments, it will be essential to watch how individual sectors and broader indices perform in the days ahead.
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