Dow Still Lagging S&P 500 and Nasdaq Year-To-Date

2 hr 7 min ago

Even with its seven-session winning streak, the Dow’s gains so far this year are about half those of the S&P 500 and Nasdaq Composite. The Dow was near unchanged for the year before the streak began at the start of this month.

S&P 500 Movers Thursday

2 hr 45 min ago

GAINS

Equinix (EQIX) led the S&P 500 higher with gains of 11.5% after the data center operator’s strong quarterly earnings report. The real estate investment trust (REIT), which specialized in digital infrastructure, posted better-than-expected adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) and adjusted funds from operations (AFFO) for the period, boosted by robust demand for artificial intelligence products.

NRG Energy (NRG) shares jumped 7.8% on the day after the utility’s quarterly results showed that free cash flow before growth declined versus a year ago. Thursday’s rebound came as analysts at BMO Capital raised their price target on NRG stock, reflecting a revaluation based on the performance of peers in the market.

Steris (STE), which provides sterilization products and services for health care providers, announced a targeted restructuring of its business, and its shares added 7.6%. The transformation will concentrate on the company’s surgical business in Europe, including product rationalizations and facility consolidations. The planned maneuvers follow last month’s announcement that Steris intends to divest its dental business.

LOSSES

Epam Systems (EPAM) shares endured the steepest decline among S&P 500 stocks, plummeting 27% after the software developer provided lower-than-expected sales and profit guidance for the current quarter and full year. Although first-quarter profits topped estimates, the company suggested its muted outlook reflected unanticipated market conditions and a tough demand environment.

Corpay (CPAY) slid 7% after the corporate payments firm said it would acquire Paymerang, a provider of accounts payable automation solutions. Previously known as Fleetcor Technologies until its rebranding in March, Corpay suggested the acquisition could help enhance its position in the education, health care, hospitality, and manufacturing sectors.

Airbnb (ABNB) fell 6.9% after the short-term rental platform’s current-quarter outlook came in below consensus expectations. Although the company beat sales, profit, and gross booking estimates for the quarter that ended in March, Airbnb noted that the timing of Easter, the additional leap-year day in February, and foreign exchange fluctuations could weigh on subsequent results.

–Mike Bromberg

Dow, S&P 500 Headed to Highest Close In More Than a Month

4 hr 47 min ago

The Dow was on pace to finish at its highest level since April 1.

The S&P 500 was poised to finish above 5,200 for the first time since April 9.

Roblox Tumbles After Earnings Report

5 hr 44 min ago

Shares of Roblox Corp. (RBLX) were down 22% in mid-afternoon trading Thursday following the release of the video game company’s first-quarter results.

Roblox recorded revenue of $801.3 million, up 22% from a year earlier but narrowly missing analysts’ estimates. The company reported a net loss of $270.6 million for the quarter, equal to 43 cents per share, narrower than the $308.4 million analysts had anticipated.

Average daily active users, a key metric for online games, was 77.7 million for the first quarter, up 17% from the year-ago period.

In a letter to shareholders also released Thursday morning, Roblox said that while daily active users and hours engaged were up year-over-year, engagement “exhibited an unseasonal decline” for much of the first quarter, across a variety of regions, ages, and platforms.

Roblox estimated bookings between $870 million to $900 million for the second quarter and $4 billion to $4.1 billion for the full year, below analysts’ expectations of $939.1 million and $4.2 billion, respectively.

–Aaron McDade

Equinix Soars on AI Demand

7 hr 2 min ago

Equinix (EQIX) is the biggest S&P gainer, a day after the data center real estate trust (REIT) posted strong results, boosted by soaring demand for artificial intelligence (AI) products. Equinix shares are up 11% in afternoon trading.

The company first-quarter adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) was up 5% year-over-year to $992 million, and adjusted funds from operations gained 5.1% to $843 million. Both were more than anticipated.

Equinix noted it closed 3,800 deals with more than 3,100 customers. It added that “accelerated hyperscale demand” led to increases in leasing in Europe, Middle East, and Africa and Asia-Pacific markets, “as continued cloud and artificial intelligence (AI) activity drives strong demand.”

Chief Executive Officer Charles Meyers said the “rapidly evolving AI landscape” remains a catalyst for economic expansion, and that creates immense potential for Equinix “as our customers recognize the importance of digital initiatives in driving long-term revenue growth and operational efficiency.”

–Bill McColl

Airbnb Leads Nasdaq Decliners on Soft Outlook

9 hr 3 min ago

Airbnb (ABNB) slid more than 6% after the company issued a weaker-than-expected current-quarter outlook, overshadowing a first-quarter earnings report that came in ahead of analysts’ expectations.

For the current quarter ending in June, the company sees net sales ranging between $2.68 billion and $2.74 billion, representing top-line growth of 8%-10% from a year earlier, with the middle portion of that forecast falling below Wall Street estimates of $2.74 billion.

The company said in its shareholder letter that its current-quarter results face “a significant sequential headwind” from the timing of Easter, an added leap-year day in the prior quarter, and the impact of foreign exchange fluctuations. However, the rentals platform sees accelerating sequential revenue growth between the second and third quarters, driven by a summer travel backlog spearheaded by the Paris Olympics in July and August.

For the three month period ending March 31, the company posted adjusted earnings of 41 cents per share, well above the 24-cents-a-share figure modeled by analysts. Revenue in the period of $2.14 billion grew 18% from the last year’s first quarter

The company noted that one-off events, such as the solar eclipse in North America, helped drive user engagement to the platform in the quarter, adding that 500,000 guests booked stays during the eclipse.

–Timothy Smith

Arm Shares Slide On Disappointing Revenue Guidance

9 hr 50 min ago

Arm Holdings (ARM) shares were down more than 4% after the British semiconductor chip designer’s better-than-expected results for the fiscal fourth quarter were overshadowed by guidance for fiscal 2025 that missed estimates.

The company’s revenue for the fourth quarter of fiscal 2024 was $928 million, a 47% year-over-year increase, while net income came in at $224 million or 21 cents per share, up from $3 million or 0 cents per share in the year-ago quarter.

Despite what CEO Rene Haas described as “strong tailwinds heading into FY25 as AI is driving increased demand for Arm-based technology,” the company’s guidance for fiscal 2025 missed analysts’ expectations.

The company said it anticipates its full-year revenue for fiscal 2025 to be between $3.8 billion and $4.1 billion, up from $3.2 billion in fiscal 2024, but short of the $4.03 billion analysts expected, according to estimates compiled by Visible Alpha.

–Naomi Buchanan

Major Stock Index Mixed

11 hr 24 min ago

Futures contracts connected to the Dow Jones Industrial Average were down 0.1%

S&P 500 futures were down fractionally.

Nasdaq 100 futures were up 0.1% about 45 minutes before the opening bell.