News
S&P 500, Nasdaq close at record highs again, led by tech stocks
For S&P 500 movers on Thursday
4 h 13 min ago
Winners
Actions of Albemarle (ALVA), the world’s largest lithium producer, jumped 7.1%, posting the best daily performance of any S&P 500 stock. With Wednesday’s gains, the stock recouped a significant portion of steep losses posted in the previous session after analysts at two banks cut their price targets, citing weak lithium prices and an uncertain demand trajectory for electric vehicles (EVs). Other analysts suggested that lithium prices are poised to rebound in the medium to long term.
CarMax (KMX) shares rose 6.5%. The gains came after analysts at Needham updated shares from another vehicle retailer Carvana (CVNA) to “buy” from “hold,” highlighting the company’s growth potential and new features designed to streamline the process of buying cars that qualify for EV tax credits. Carvana shares gained 4.2%.
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Shares of the pharmaceutical giant Walgreens Boots Alliance (World Management Association (WBA)) rose 4.4%. Shares fell to 27-year lows in late June after the company missed profit estimates, cut its guidance and announced it would close underperforming stores amid sluggish consumer demand. The health-care provider’s shares remain down more than 55% year to date.
Declining
Outdoor Deckers (COVERED AREA) fell 4.9%, the biggest losses in the S&P 500, after a report from data analytics firm M Science pointed to slower sales in June for the company’s Hoka and Ugg footwear brands. The slowdown for popular footwear brands reflects broader pressure on discretionary spending, as consumers cut back on high-end purchases in response to high inflation and limited wage growth.
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Shares of software companies fell, suggesting a potential rotation from hot semiconductor stocks to likely beneficiaries of artificial intelligence (AI) in the software industry may be losing steam. Shares of cybersecurity software provider CrowdStrike Holdings (CROSSING) fell 3%. Meanwhile, financial software company purpose (INTU) said he would10% discount of its workforce. Its shares fell 2.6%. HubSpot (CENTERS) fell 12% after reports that Google’s parent company Alphabet (GOOGL) was no longer interested in buying it.
Uber Technologies (UBER) shares fell 2.9% after Hong Kong said it would start regulating ride-sharing services. The Transport and Logistics Bureau in the special administrative region said it would require licensing for Uber and rival platforms, while also aiming for stricter enforcement of the rules and penalties for violations.
Tesla extends winning streak as Goldman raises price target
4 h 41 min ago
Tesla (TSLA) shares closed higher for the eleventh consecutive session on Wednesday, Goldman Sachs analysts raised their price target for the electric vehicle giant’s shares.
Shares have been on a winning streak since the days leading up to the launch of its Q2 production and delivery numberswhich exceeded analysts’ expectations. The recent extension of earnings allowed Tesla shares to return to the green for the year to date.
The stock rose 0.4% to close Wednesday’s session at $263.26, gaining 44% during its winning streak.
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Goldman analysts raised their price target on the stock to $248 from $175, while maintaining a neutral rating.
Goldman analysts said a lower-cost model could have a positive impact on Tesla’s market share, helping the electric vehicle maker be more competitive with Chinese companies offering cheaper vehicles.
Analysts also pointed to Tesla’s evolving self-driving software and its planned robotaxi launch next month as areas of future growth, but said it would be time before self-driving taxis were widely available or Tesla’s traditional vehicles were fully autonomous.
“While we continue to believe Tesla is well positioned for long-term growth given its strong position in the electric vehicle and clean energy markets,” the analysts wrote, “we expect weaker market conditions to weigh on earnings in the near to medium term.”
Tesla is scheduled to report earnings after the close of trading on July 23, when the company could provide additional details about the robotaxi debut event currently scheduled for August 8th.
Nvidia shares near record high, fueled by AI optimism
6h 30min ago
Nvidia (NVDA) shares rose again on Wednesday, closing in on the record set last month as the chipmaker continues to benefit from investor enthusiasm about the company’s strong position during the AI boom.
Trading view
The continued rise could raise questions about how the company’s shares will sustain their record climb.
Analysts at Truist Securities said in a report Wednesday that earnings growth driven by rising sales will be key for the stock to maintain its outperformance. They highlighted strong demand for AI chips and Nvidia’s advantaged position as factors contributing to organic sales growth.
Read more here on analysts’ views on the outlook for Nvidia.
Carvana shares surge in momentum with update
8 h 31 min ago
Carvana (CVNA) shares accelerated on Wednesday after Needham analysts updated its shares and the company revealed new resources for the purchase of electric vehicles (EVs).
The digital car-buying company is a “secular growth story with cyclical recovery momentum,” Needham analysts Chris Pierce and Mackenzie Holleran wrote in a note Wednesday, in which they raised their rating on the stock to “buy” from “hold.”
Trading view
Needham issued a price target of $160, a 27% premium to Tuesday’s closing price. Carvana shares, which traded at $25.09 last November, have risen 4.6% to $131.40 in recent trading.
“After a volatile past we see [Carvana] becoming a profitable secular growth story, with increasing retail unit sales and improving gross profit per unit metrics, leveraging a high fixed cost base,” the analysts wrote.
TSMC shares rise on strong revenue growth
9 h 49 min ago
Shares of Taiwan Semiconductor Manufacturing Company (TSM) got up Wednesday after the chipmaker released revenue figures for June, providing a complete picture of the company’s performance in the second quarter.
June revenue increased 33% year-over-year. Combined with its performance in April and May, the June data puts TSMC’s second-quarter revenue at NT$673.51 billion ($20.67 billion), about NT$20 billion better than what analysts had projected and 40% above last year’s mark of NT$480.84 billion.
The company, which supplies tech giants like Apple (AAPL) and Nvidia (NVDA), was a beneficiary of the artificial intelligence (AI)) growth, as demand for chips to manufacture AI products increased compensate for lower demand for its other productssuch as semiconductors used in car production.
Earlier this year, the Biden administration announced plans to award TSMC up to US$6.6 billion in subsidies from CHIPS and Science Law to help the chipmaker increase its production capacity in the US
TSMC shares rose 2.7% in recent trading.
LegalZoom falls to record low as CEO leaves
10 h 48 min ago
LegalZoom shares (LZ) fell 30% to an all-time low on Wednesday as online advertised legal services provider CEO Dan Wernikoff is leaving and has cut his full-year guidance.
Trading view
The company said Wernikoff will “step down” and be replaced by current Chairman Jeffrey Stibel, effective immediately. Wernikoff had been CEO since October 2019 and took LegalZoom public in 2021.
The company said it was the “right time for this transition” as it shifts its focus “towards subscription-based revenue to drive long-term profitable growth.”
Along with the CEO change, LegalZoom said it was lowering its 2024 revenue forecast from $700 million to $720 million to $675 million to $685 million.
Corning shares rise again amid AI enthusiasm
11 h 24 min ago
Shares of specialty glass maker Corning (GLW) rose in early trading Wednesday, adding to a 16% gain the stock posted in the previous two sessions. The rally began Monday after the company boosted its current quarter outlook due to the growing acceptance of its optical connectivity products used in generative artificial intelligence (AI) forms.
Since bottoming out at the lower trendline of a descending channel In late October, Corning shares continued to trend sharply higher, with gains accelerating after the pattern’s upper trendline broke.
Source: TradingView.com.
It is important to note that the increase in shares this week occurred at the highest weekly index volume of business since February 2018, indicating strong conviction behind the movement. Furthermore, the relative strength index (RSI) confirms the bullish price momentum, but also signals significantly overbought conditions with a reading above the 80 threshold.
Given the stock’s recent upward movement, the price could see an imminent retest of its April 2021 high at $46.82. Shares were up 0.8% early Wednesday at $45.03.
During periods of profit-taking, Corning stock may attract buying interest at key chart levels, including $39, $35 and $31.
Read more here what Corning’s technical data and weekly chart tell us.
Stock futures point to higher open for major indexes
13 h 12 min ago
Futures contracts tied to the Dow Jones Industrial Average rose 0.1%.
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S&P 500 futures gained 0.3%.
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Nasdaq 100 futures rose 0.4%.
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