Today saw a significant downturn in the stock market, with the Nasdaq Composite experiencing a 2.0% drop, more than the S&P 500 and Dow Jones Industrial Average, which fell by 1.6% and 1.5% respectively. The decline was exacerbated towards the close due to a wave of end-of-month selling, reflecting a broader trend of de-risking throughout April.
Notable losses were recorded by NVIDIA (NVDA) and Meta Platforms (META), despite both companies showing early gains during the day. NVIDIA closed down at $864.02, a 1.5% decrease, after initially peaking with a 1.2% gain. Similarly, Meta Platforms ended the day at $430.17, down 0.6%, after an early increase of 1.6%.
The market's downward movement was influenced by a rise in market rates, following a report that showed a 1.2% increase in Q1 employment compensation costs, exceeding the expected 1.0%. This has added to the ongoing concerns about persistent inflation and potential delays in interest rate cuts by the Federal Reserve.
Despite widespread losses across sectors, a few companies bucked the trend due to positive earnings reports. Eli Lilly (LLY) saw a significant rise, closing at $781.10, up 6.0%. Corning (GLW) and 3M (MMM) also posted gains, closing up 5.0% and 4.7% at $33.38 and $96.51, respectively.
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Today's News
Amazon (AMZN, Financial) reported a strong first quarter, with earnings per share of $0.98, surpassing the consensus estimate of $0.83. The company's revenue reached $143.3 billion, up 12.5% year-over-year, beating expectations by $750 million. Notably, the North America segment saw a 12% increase in sales, while AWS sales grew by 17%. However, Amazon's guidance for the second quarter suggests a slowdown in growth, with net sales projected to be between $144.0 billion and $149.0 billion, slightly below the consensus of $150.09 billion.
Super Micro Computer (SMCI, Financial) also exceeded expectations with a third-quarter non-GAAP EPS of $6.65, outpacing the consensus by $1.08. However, its revenue of $3.85 billion, a 200.8% increase year-over-year, fell short of expectations by $50 million. The company has raised its revenue guidance for fiscal year 2024, now expecting between $14.7 billion and $15.1 billion, against a consensus of $14.59 billion.
Advanced Micro Devices (AMD, Financial) posted a modest earnings beat with a first-quarter non-GAAP EPS of $0.62, slightly above the expected $0.61. The company's revenue of $5.47 billion, up 2.2% year-over-year, also surpassed forecasts. AMD's data center segment was particularly strong, with revenue up 80% due to sales of its AMD Instinct GPUs and EPYC CPUs.
Starbucks (SBUX, Financial) faced a challenging quarter with its Q2 non-GAAP EPS of $0.68 missing estimates by $0.12 and revenue declining 1.8% year-over-year to $8.56 billion. Global comparable store sales decreased by 4%, with a notable 11% decline in China.
Pinterest (PINS, Financial) delivered a positive surprise with its first-quarter results, achieving a non-GAAP EPS of $0.20, which beat estimates by $0.07. Revenue grew 22.8% to approximately $740 million, driven by a 12% increase in global monthly active users to 518 million.
Caesars Entertainment (CZR, Financial) reported a decline in Q1 revenue by 3.2% year-over-year to $2.74 billion. The company highlighted profitability in its digital operations but noted a decrease in adjusted EBITDA across its Las Vegas and regional properties.
W.P. Carey (WPC, Financial) disclosed first-quarter financials that slightly missed expectations, with FFO of $1.14 per share and revenue of $389.8 million, down 8.9% year-over-year. The company reaffirmed its full-year AFFO guidance, expecting continued investment activity.
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