S&P 500 Prime Movers on Tuesday

August 06, 2024 05:48 PM EDT

Advancers

• Shares of Kenvue (KVUE), father or mother firm of Band-Help, Tylenol, and different shopper well being care merchandise, posted the strongest efficiency within the S&P 500, hovering 14.2%. The previous unit of Johnson & Johnson (JNJ) beat second-quarter gross sales estimates and affirmed its above-consensus steering for the total 12 months. CEO Thibaut Mongon mentioned Kenvue stays within the early phases of a metamorphosis “right into a bolder, extra agile group.” 

• Uber Applied sciences (UBER) shares added 11.8% after the ridesharing firm drove previous analysts’ income and web revenue estimates for the second quarter. Gross bookings jumped 19% from
  a 12 months in the past, whereas earnings greater than doubled, reaching $1.02 billion.
• Shares of Royal Caribbean Cruises (RCL) sailed 8.5% larger after analysts at JPMorgan known as Royal Caribbean “greatest at school” within the cruise trade. The analysts cited Royal Caribbean’s recognition amongst vacationers, price self-discipline, and progress plans as help for his or her “chubby” score on the inventory.

Decliners

• Shares of Henry Schein (HSIC), a distributor of dental and medical tools, dropped 8%, marking the heaviest losses of any S&P 500 constituent. Henry Schein’s second-quarter gross sales and earnings fell wanting expectations, and the corporate mentioned it might take longer than anticipated for it to recuperate from a cybersecurity breach that disrupted its operations final 12 months.
• Expeditors Worldwide of Washington (EXPD) shares fell 4.6% after the freight forwarding and logistics agency reported a year-over-year decline in earnings, pressured by larger prices. Though Expeditors Worldwide posted a rise in airfreight tonnage quantity from a 12 months in the past, its ocean container quantity declined.
• Vulcan Supplies (VMC) shares sank 4.3% after the supplier of building supplies reported lower-than-expected quarterly gross sales and earnings. The maker of building aggregates additionally minimize its forecast for full-year adjusted earnings earlier than curiosity, taxes, depreciation, and amortization (EBITDA). Vulcan famous that top rates of interest stay a drag on the housing sector, which lowers demand for its merchandise.

–Michael Bromberg

Kenvue Jumps to 4-Month Excessive After Earnings

August 06, 2024 04:39 PM EDT

Kenvue (KVUE) shares surged Tuesday after the corporate affirmed full-year steering that topped analysts’ expectations.

The Tylenol and Band-Help father or mother, previously the buyer healthcare unit of Johnson & Johnson (JNJ), continues to count on 2024 web gross sales progress between 1% and three%, with the midpoint properly above analysts’ expectations of 1.4%, per Seen Alpha.

Within the second quarter, the corporate posted earnings per share (EPS) of three cents on income of $4 billion. Analysts had known as for EPS of 24 cents on income of $3.93 billion. Adjusted EPS of 32 cents topped estimates.

Kenvue shares jumped almost 15% to a four-month excessive on Tuesday, main S&P 500 gainers.

–Andrew Kessel

What the ‘Carry Commerce’ Needed to do with Monday’s Rout

August 06, 2024 02:48 PM EDT

The yen carry commerce, a preferred funding technique that exploits the hole between low Japanese rates of interest and excessive charges elsewhere, could also be one key think about current market volatility.

A extra aggressive Financial institution of Japan and delicate U.S. financial knowledge have threatened to slim the hole between Japanese and U.S. rates of interest, prompting an unwinding of the commerce.

Analysts say the way forward for the carry commerce largely is dependent upon the trajectory of the U.S. economic system and the magnitude of any response by the Federal Reserve.

Learn the total article right here.

–Colin Laidley

Nvidia Recovers as Analysts Spotlight AI Management

August 06, 2024 01:21 PM EDT

Nvidia (NVDA) shares jumped Tuesday, recovering from a steep selloff the earlier session that got here amid studies its Blackwell synthetic intelligence chip will probably be delayed.

Analysts instructed that whereas a delay might result in near-term volatility for Nvidia, they remained bullish on the chipmaker’s long-term prospects, highlighting its AI energy.

Nvidia’s “aggressive place stays sound, and we don’t count on any share loss from a minor delay,” Oppenheimer analysts mentioned, including that they see Nvidia as “greatest positioned in AI, benefiting from full stack AI {hardware}/software program options.”

A delay “might drive some volatility in Nvidia’s near-term,” Goldman Sachs analysts mentioned, although they “count on there to be little to no affect on CY2025 earnings and, most significantly, the corporate’s long-term aggressive place.”

Citi analysts, who had eliminated Nvidia from their “upside catalyst watch” over the weekend following studies of the delay, nonetheless maintained a “purchase” score for the inventory.

Calling Nvidia’s potential provide constraints a “solvable” subject, Financial institution of America analysts instructed they’d view any sell-off as an “enhanced shopping for alternative.”

An Nvidia spokesperson informed Investopedia that “Blackwell sampling has began, and manufacturing is on monitor to ramp” within the second half of the 12 months, including, “past that, we do not touch upon rumors.”

Nvidia shares have been up 6% in current buying and selling, recovering a piece of the 14% decline for the inventory over the earlier three periods.

–Naomi Buchanan

Uber Inventory Jumps After Earnings

August 06, 2024 12:04 PM EDT

Uber (UBER) inventory jumped Tuesday after the ride-sharing big’s second-quarter earnings beat analysts’ estimates as gross bookings grew 19% year-over-year.

The corporate reported a 16% income bump to $10.7 billion, above Seen Alpha consensus estimates. Web revenue additionally simply surpassed estimates at $1.02 billion, and greater than doubled from final 12 months’s $394 million.

Gross bookings got here in simply above estimates at $39.95 billion, cut up largely between Uber’s Mobility division ($20.6 billion) and its Supply unit that features Uber Eats ($18.1 billion).

JPMorgan analysts mentioned in a be aware following the earnings report that they have been inspired by the acceleration of progress in Mobility and the deal with profitability of Uber’s Supply section.

Uber shares have been up almost 9% round noon Tuesday and have been among the many greatest gainers on the S&P 500

–Aaron McDade

Caterpillar Leads Dow Gainers After Revenue Beat

August 06, 2024 10:55 AM EDT

Caterpillar (CAT) shares rose Tuesday as the development tools maker’s second-quarter earnings beat analysts’ estimates, offsetting one other quarter of income falling wanting expectations.

Income slipped 3.6% year-over-year to $16.69 billion, coming in wanting analysts’ estimates compiled by Seen Alpha. Earnings fell 8.2% to $2.68 billion, narrowly beating projections, however adjusted web revenue, accounting for roughly $250 million in one-time bills like restructuring prices, beat estimates by a wider margin and rose from final 12 months to $2.93 billion.

Caterpillar shares have been up greater than 4% in current buying and selling, making it the highest gainer on the Dow Jones Industrial Common.

–Aaron McDade

Palantir Jumps After Sturdy Earnings, Steerage Enhance

August 06, 2024 09:55 AM EDT

Palantir (PLTR) shares jumped in early buying and selling Tuesday after the info analytics firm topped Wall Avenue’s quarterly estimates and raised its full-year outlook amid sturdy demand for its AI software program companies.

The shares staged a formidable intraday reversal Monday on the very best buying and selling quantity since early Could to shut in direction of their excessive of the day after initially opening 12% decrease, indicating bigger market individuals might have anticipated a giant earnings-driven transfer.

Palantir shares, which have been up greater than 7% at $25.84 in current buying and selling, might face promoting stress at key ranges on the chart together with $27, $29, $39, $45, and $50.50.

Learn our full technical evaluation right here.

–Timothy Smith

Main Indexes Poised to Open Increased Tuesday

August 06, 2024 08:53 AM EDT

Futures tied to the Dow Jones Industrial Common have been up 0.4%.

S&P 500 futures have been additionally up 0.4%.

Nasdaq 100 futures have been up 0.3%.