Wall Street is gearing up for a low-key open on Thursday, May 16, following record highs for the S&P 500, Nasdaq, and Dow. The market is showing signs of being overbought, according to the S&P 500 Short Range Oscillator. Despite this, a number of stocks are leading the charge higher.
Dow stock Walmart saw a 6% increase on Thursday after reporting a blowout quarter, with strong e-commerce sales and wins over higher-income customers. Other retailers, such as Under Armour and Canada Goose, also delivered quarterly beats, though Under Armour’s stock sank 11% due to rough guidance. Canada Goose, on the other hand, saw a 13.5% jump as earnings crushed estimates.
Cisco Systems, another Dow stock, rose over 1.5% following quarterly earnings and revenue beats, with orders on the rise and inventories down even before the completion of Cisco’s acquisition of Splunk. Investors are also showing interest in Palo Alto Networks’ acquisition of IBM’s cybersecurity business, leading to a 1% increase in Palo Alto shares.
Warren Buffett’s Berkshire Hathaway revealed insurer Chubb as the confidential stock the company has been buying, resulting in an almost 8% increase in Chubb’s stock. However, there are concerns about potential antitrust repercussions due to Berkshire’s ownership of Geico. Truist downgraded Occidental Petroleum, a Buffett favorite, to hold, while upgrading Coterra Energy to a buy.
Deere shares dropped 5.5% after cutting its full-year outlook due to pressure from declining crop prices, despite beating quarterly earnings per share and equipment revenue. Netflix announced it has 40 million advertising-tier customers, nearly double its estimate from January, and has shifted away from partnering with Microsoft on ad tech.
Wells Fargo initiated coverage on Texas Instruments with a sell rating, betting that the chipmaker won’t meet targets, despite its stock being up year to date. Bernstein increased Arm Holdings’ price target to $92 per share from $72, while maintaining a sell rating due to the company’s failure to meet expectations.
Investors can sign up for a free Top 10 Morning Thoughts on the Market email newsletter for more insights. As a subscriber to the CNBC Investing Club with Jim Cramer, members receive trade alerts before Jim makes a trade, with specific waiting periods before executing trades discussed on CNBC TV. It’s important to note that no specific outcome or profit is guaranteed, and the information provided is subject to terms and conditions and privacy policy.
