Nvidia lifts S&P 500
27 minutes ago
Nvidia (NVDA) shares surged on Tuesday, recovering from a three-day sell-off that had dragged the AI chip giant into correction territory.
Nvidia's stock price gains, which saw shares rise more than 6% at their intraday highs, helped lift the S&P 500 into positive territory and contributed about 21 points to the index's 19-point gain as of 2:50 p.m. ET.
The company's shares fell about 12% between last Tuesday, when it overtook Microsoft (MSFT) to become the world's most valuable company, and yesterday's close.
During the same period, the S&P 500 and Nasdaq Composite Index fell even as most stocks traded on U.S. exchanges rose.The divergence illustrates the vital importance of mega-cap tech stocks, especially Nvidia, to U.S. stock indexes and the funds that track them.
Poole Corporation cuts outlook as sales fall amid economic conditions
1 hour 44 minutes ago
Shares of Pool Corporation (POOL) fell in midday trading Tuesday, a day after the pool equipment distributor sharply cut its earnings outlook as the economic situation dampened consumer discretionary spending and weakened demand.
The company warned that sales are down about 6.5% so far this year and that it expects full-year sales to be in a “similar range.” To reflect that, Poole Corporation now expects 2024 earnings per share (EPS) of $11.04 to $11.44, down from its previous outlook of $13.19 to $14.19. The company now expects EPS of $4.85 to $4.95 for the current quarter, below analyst expectations.
The Pool Corporation announced it believes new pool construction activity could decline 15 to 20 percent starting in 2023. Renovations are now expected to decline by up to 15 percent, compared with a previous forecast of flat to a 10 percent decline.
Poole Corp. shares were down more than 7% to $313.47 on Tuesday afternoon, their lowest level since October. Shares of rival Leslie's (LESL) were down more than 4%.
-Bill McCall
Carnival shares surge after surprise second-quarter profit
3 hours 4 minutes ago
Shares of cruise operator Carnival Corporation (CCL) rose in intraday trading on Tuesday after the company reported a surprise quarterly profit and raised its earnings outlook as customers spent more on cruises.
The company reported second-quarter adjusted earnings per share of $0.11, while analysts surveyed by Visible Alpha were expecting a loss of $0.02 per share. Revenue rose 17.7% to $5.78 billion, also beating expectations.
Revenue, operating income of $560 million, Adjusted EBITDA of $1.2 billion and bookings all reached new second quarter records. Total customer deposits reached an all-time high of $8.3 billion.
Carnival said the results were due to higher ticket prices, increased onboard spending by passengers and the timing of expenses between the quarters.
Carnival now expects full-year adjusted EBITDA to be $5.83 billion, up about $200 million from its previous outlook.
Carnival shares surged nearly 8%, helping to lift shares of other cruise companies like Norwegian Cruise Line (NCLH) and Royal Caribbean Group (RCL). But despite today's gains, Carnival shares are still down nearly 5% for the year to date.
-Bill McCall
SolarEdge Technologies shares plummet as customer goes bankrupt
4 hours 1 minute ago
SolarEdge Technologies (SEDG) shares tumbled on Tuesday, a day after the solar equipment maker said one of its customers had filed for Chapter 7 bankruptcy protection and would likely be unable to repay millions of dollars in debt. The company also warned about spending in the current quarter and announced a new bond offering.
SolarEdge said in a filing with the U.S. Securities and Exchange Commission on Monday that Arizona-based solar panel installer PM&M Electric owes it $11.4 million, and noted that while it is monitoring the bankruptcy proceedings, “we cannot guarantee the outcome of the proceedings, and it is possible that we will not be able to collect any amounts owed to us, or that it will take a significant amount of time to collect them.”
In the same report, SolarEdge explained that it expects to use $150 million of free cash in the second quarter, primarily due to “certain discretionary minority investments, the extension of credit facilities to certain customers, higher than expected working capital related to the expansion of its U.S. manufacturing operations, and a slower pace of accounts receivable payments.”
Additionally, the company announced it would issue $300 million in convertible notes due 2029. The proceeds will be used to cover the costs of capped call transactions, repay prior indebtedness, and for general corporate purposes.
SolarEdge Technologies shares have plummeted more than 16% and are trading at their lowest level in seven years.
-Bill McCall
Novo Nordisk shares rise after Wegovy approved in China
4 hours 56 minutes ago
American depositary receipts (ADRs) of Danish pharmaceutical company Novo Nordisk (NVO) rose on the New York Stock Exchange (NYSE) on Tuesday after the company said it had received approval to begin selling its popular weight-loss drug Wegovy in China.
The treatment for overweight and obese patients was “recently” approved by China's National Medical Products Administration, according to a translation of a Chinese-language release issued by Novo Nordisk on Tuesday morning.
Novo Nordisk's Ozempic and Wegovi have exploded in popularity in recent years, boosting the company's earnings and stock price and making it Europe's most valuable company, while U.S. rival Eli Lilly (LLY) has seen similar growth thanks to weight-loss drugs Maunjaro and Zepbound.
The announcement came a day after Novo Nordisk said it plans to spend just over $4 billion to build a new facility in North Carolina and expand manufacturing in the U.S. as part of a $6.8 billion effort to add capacity this year. The company has also completed several acquisitions over the past year to boost production.
Novo Nordisk's ADR is expected to rise by almost 4% and 40% in 2024.
-Aaron McDaid
Spirit AeroSystems shares fall after reports Boeing has changed terms of acquisition
5 hours 31 minutes ago
Boeing's (BA) shares fell after Bloomberg reported late Monday that it had changed the terms of its proposal to reacquire aerospace structural parts supplier Spirit AeroSystems (SPR) in an all-cash stock deal that values the company at about $35 a share.
If the offer is accepted, the $35 per share price would represent about a 6 percent premium to Spirit's closing price of $33.07 on Monday and a 22 percent increase from its closing price on Feb. 29, the day before the takeover talks were made public.
Additionally, the deal would require Spirit Airlines to sell some of its manufacturing plants to Boeing's European rival Airbus (EADSY), Bloomberg reported. Talks have faced headwinds in recent months, with Airbus threatening to block the deal if Boeing makes its newest planes for the airline.
The embattled aircraft manufacturer has come under intense scrutiny from federal aviation regulators and lawmakers after a door plug on an Alaska Airlines (ALK) 737 Max jet came off in flight in January.
Source: TradingView.com.
Looking at the weekly chart, Spirit AeroSystems shares rose above a multi-year downward trendline in early March after reports of a possible acquisition of the company by Boeing.
Since then, the price initially reversed but found support from the breakout point and is currently trading just below the neckline of an inverse head and shoulders pattern, a chart formation that suggests a possible reversal to the upside.
Going forward, investors may be on the lookout for a volume-supported breakout above the pattern neckline at $35. Such a move could signal the start of a new uptrend and push the stock to around the $54 mark, at which point it would likely encounter upward resistance from a horizontal line that ties together a series of price moves dating back to May 2017.
-Tim Smith
Stock futures mostly up
6 hours 45 minutes ago
Dow futures were down 0.1% in premarket trading Tuesday.
S&P futures rose 0.2%.
Nasdaq futures rose 0.3%.
