Nvidia, Big Tech push Nasdaq higher; Alphabet sets record

Nvidia leads the S&P 500 into the green

54 minutes ago

Nvidia (NVDA) shares surged on Tuesday, recovering from a three-day slide that had put the AI ​​chip giant in correction territory.

Nvidia's gain — up more than 6% at the stock's intraday high — pushed the S&P 500 into positive territory, contributing nearly 21 points to the index's 19-point gain as of 2:50 p.m. ET.

The stock's value has fallen by about 12% between last Tuesday, when it overtook Microsoft (MSFT) to become the world's most valuable company, and yesterday's close.

The S&P 500 and Nasdaq Composite declined over the same period, while most stocks traded on U.S. exchanges rose. This difference exemplifies the outsized importance of mega-cap tech stocks, and especially Nvidia, to U.S. stock indexes and the funds that track them.

Pool Corporation cuts outlook as economic conditions impact sales

2 hours 11 minutes ago

Shares of Pool Corporation (POOL) fell in intraday trading on Tuesday, a day after the distributor of pool products cut its guidance, as economic conditions have reduced consumer discretionary spending and dampened demand.

The company warned that sales have declined about 6.5% so far this year, and it expects full-year sales to remain “in the same range.” Pool Corporation has revised its outlook to reflect this, now estimating 2024 earnings per share (EPS) of $11.04 to $11.44, down from its prior outlook of $13.19 to $14.19. It sees current quarter EPS of $4.85 to $4.95, below analysts' forecasts.

The Pool Corporation said it now believes new pool construction activity could decline by 15% to 20% through 2023. It expects remodeling to fall by up to 15%, after previously forecasting a drop of up to 10%.

Shares of Poole Corporation fell more than 7% to $313.47 on Tuesday afternoon, their lowest level since October. Shares of rival Leslie's (LESL) fell more than 4%.

-Bill McCall

Carnival shares jump on surprise second quarter profit

3 hours 31 minutes ago

Shares of Carnival Corporation (CCL) rose in intraday trading on Tuesday after the cruise operator reported a surprise quarterly profit and raised its guidance as customers spent more on sailings.

The company reported adjusted earnings per share (EPS) of $0.11 in the second quarter, while analysts surveyed by Visible Alpha expected a loss of $0.02 per share. Revenue rose 17.7% to $5.78 billion, also beating estimates.

Revenue set second quarter records, with operating income of $560 million, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $1.2 billion, and bookings levels. Total customer deposits of $8.3 billion were the highest ever.

Carnival said the results were driven by higher ticket prices, an increase in on-board spending by passengers and the timing of spending between quarters.

Carnival now expects full-year adjusted EBITDA to be $5.83 billion, up about $200 million from its previous estimate.

Carnival shares jumped nearly 8%, helping to lift shares of other cruise companies including Norwegian Cruise Line (NCLH) and Royal Caribbean Group (RCL). However, despite today's gain, Carnival shares are down about 5% year-to-date.

,Bill McCall

SolarEdge Technologies stock falls sharply after customer goes bankrupt

4 hours 27 minutes ago

Shares of SolarEdge Technologies (SEDG) fell sharply on Tuesday, a day after the solar power equipment maker announced that one of its customers has filed for Chapter 7 bankruptcy and likely won't be able to pay its multimillion-dollar debt. It also warned about current quarter spending, and announced a new bond sale.

SolarEdge wrote in a filing with the Securities and Exchange Commission (SEC) on Monday that Arizona-based solar panel installer PM&M Electric owes the company $11.4 million. It also said that while it is monitoring the bankruptcy, it “cannot guarantee the outcome of the proceedings and may fail to collect amounts due to the company or collect such amounts only after significant delays.”

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, extensions of credit provided to certain customers, higher-than-expected working capital related to the ramp up of U.S. manufacturing, and the slower pace of payments on accounts receivable.”

In addition, the company said it will sell $300 million of convertible senior notes due in 2029. It plans to use the funds to cover the cost of capped call transactions, repay earlier debt and for general corporate purposes.

Shares of SolarEdge Technologies have fallen more than 16% and are trading at their lowest level in seven years.

,Bill McCall

Novo Nordisk sales rise as Wegovy gets approval in China

5 hours 23 minutes ago

American depositary receipts (ADRs) of Danish drugmaker Novo Nordisk (NVO) soared on the New York Stock Exchange (NYSE) on Tuesday after the company announced that its popular weight-loss drug Wegovy has been approved to be sold 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 release issued by Novo Nordisk on Tuesday morning.

Novo Nordisk's Ozempic and Wegovy have grown tremendously in popularity over the past few years, boosting the company's earnings and stock price, making it Europe's most valuable company, while its U.S. competitor Eli Lilly (LLY) has seen similar growth thanks to its weight loss drugs Monjaro and Zepbound.

The announcement comes a day after Novo Nordisk said it plans to spend more than $4 billion to expand its U.S. manufacturing with a new facility in North Carolina as part of a broader $6.8 billion effort to increase capacity this year. The company has also completed several acquisitions in the past year to boost its production.

Novo Nordisk ADRs are up about 4% and are up 40% in 2024.

-Aaron McDade

Spirit AeroSystems shares fall after Boeing reportedly changes offer terms

5 hours 57 minutes ago

Shares of Spirit AeroSystems (SPR) tumbled Bloomberg News broke late Monday that Boeing ( BA ) had changed the terms of its all-cash offer to reacquire the aerostructures supplier to a stock deal valued at about $35 a share.

If accepted, the $35-a-share offer would be about 6% higher than Spirit's Monday closing price of $33.07 and 22% higher than its Feb. 29 closing price, the day before the acquisition discussions went public.

Additionally, the deal would require Spirit to hand over some of its manufacturing plants to Boeing's European rival Airbus (EADSY). Bloomberg The discussions have hit a roadblock in recent months, according to the report, as Airbus has threatened to block the deal if Boeing builds any of its latest aircraft.

The troubled plane maker has come under intense scrutiny from federal aviation regulators and lawmakers this year after an Alaska Airlines (ALK) 737 Max jet lost a plug mid-flight in January.

Looking at the weekly chart, shares of Spirit AeroSystems broke a multi-year downtrend line in early March when news of the company's potential acquisition by Boeing surfaced.

Since that time, the price initially declined but found support from the breakout point and is now trading just below the neckline of an inverted head and shoulders pattern, a chart formation that signals a possible reversal to the upside.

Looking ahead, investors can monitor for a volume-supported breakout above the pattern's neckline at $35. Such a move could mark the start of a new uptrend and see the stock climb to around $54, where it could face overhead resistance from a horizontal line connecting a series of price action stretching back to May 2017.

,Tim Smith

Stock futures mostly higher

7 hours 12 minutes ago

Dow futures declined 0.1% in premarket trading on Tuesday.

S&P futures rose 0.2%.

Nasdaq futures rose 0.3%.