Markets News, June 6, 2024: Stocks Little Changed Ahead of Jobs Report; GameStop Soars

Stock Indexes Wrap: Discount Retailers Slump and AI Stocks Retreat

5 hr 30 min ago

The Dow

Salesforce (CRM) led the index higher, rising 2.7%. It was followed by Amazon (AMZN), up 2.1%

Boeing (BA) rose 0.8% as its Starliner spacecraft successfully docked with the International Space Station for the first time. 

The S&P 500

Illumina (ILMN) added 7.4% two days after the company’s board approved the spin-off of Grail, which the company had faced pressure from regulators to split off after it acquired the cancer test maker in 2021.

Uber (UBER) climbed 4.7% after competitor Lyft (LYFT) offered an optimistic forecast for future bookings at its first investor day. 

J.M. Smucker (SJM) rose 4.6% after topping quarterly earnings estimates despite disappointing sales. 

High-flying utilities stocks continued to slump, led by Vistra (VST), down 6.1%. NRG Energy (NRG) and Constellation Energy Corp (CEG) fell 4.5% and 3.2%, respectively. 

Super Micro Computer (SMCI), another stock that has ridden the AI wave higher, slid 3.1%. 

Dollar General (DG) shed 3.6% after competitor Five Below (FIVE) lowered its full-year guidance as low-income consumers felt the pinch of high interest rates and inflation. Dollar Tree (DLTR) lost 1.8%. 

Nvidia (NVDA) slid 1.1% following reports it could face an investigation by federal regulators into its dominance in the AI semiconductor market. Microsoft (MSFT) was also named as a potential target; its shares ticked up 0.1%. 

The Nasdaq 100

Lululemon athletica (LULU) gained 4.8% after reporting better-than-expected earnings and raising its full-year guidance. 

Semiconductor stocks slipped after rallying yesterday. Micron (MU) fell 2.7%, while Marvell Technology (MRVL) lost 2.4% and Qualcomm (QCOM) shed 1.2%. 

Lyft Sees Bookings, Ad Business Jumping Over the Next Few Years; Stock Gains

6 hr 40 min ago

Lyft (LYFT) shares gained Thursday as the ridesharing company gave an optimistic long-term outlook at its first investor day.

The company said it expects gross bookings to increase 15% each year through 2027. It sees adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin, as a percentage of gross bookings, of about 4% in 2027, and free cash flow conversion, as a percentage of adjusted EBITDA, of more than 90% each year between 2025 and 2027.

CFO Erin Brewer explained that these financial targets “reflect our expectations of healthy top-line growth and margin expansion as we deliver on our strategic priorities.”

Lyft did not change its current-quarter or full-year guidance. 

Shares of Lyft were up 1.8% Thursday afternoon. The stock has gained about 5% this year.

–Bill McColl

GameStop Soars After Roaring Kitty Schedules First Livestream in 3 Years

7 hr 27 min ago

Shares of GameStop (GME) surged as much as 40% in intraday trading Thursday after meme stock trader Keith Gill, who disclosed a more than $200 million position in the video game retailer on Sunday, scheduled his first livestream in more than 3 years.

Gill will begin live-streaming on his YouTube channel, @RoaringKitty, at noon on Friday.

Gill’s last livestream took place on January 22, 2021, when he discussed his investment in GameStop. Shares surged 50% that day alone and went on to increase fivefold in the following days. 

Five Below Stock Slumps as Inflation Pinches Customers

8 hr 39 min ago

Shares of Five Below (FIVE) plunged Thursday after the discount retailer posted worse-than-expected quarterly results and lowered its guidance as inflation hurt its low-income customers.

The store chain reported first-quarter fiscal 2024 adjusted earnings per share (EPS) of $0.60, with net sales rising 11.8% to $811.9 million. Both were shy of estimates.

Comparable store sales declined 2.3% from the first quarter of fiscal 2023, while operating income slumped 14.6% to $36.2 million. The company noted that excluding expenses for employment-related litigation, the figure would have been $38.2 million, although still below 2023 levels.

The company now sees full-year revenue in a range of $3.79 billion to $3.87 billion, down from the previous forecast of $3.97 billion to $4.07 billion. It anticipates comparable store sales to drop 3% to 5%, down from its prior estimate of flat to a 3% increase. 

Five Below shares were down more than 12% early in the afternoon on Thursday. They have lost about 45% of their value in 2024.

–Bill McColl

J.M. Smucker Stock Rises as It Gets a Lift From Hostess Brands Acquisition

9 hr 31 min ago

Shares of The J.M. Smucker Co. (SJM) advanced after the food producer beat profit estimates as it cut costs, raised prices, and benefited from its purchase of Hostess Brands.

The company behind the eponymous jelly, Jif peanut butter, and Folgers coffee posted fourth-quarter fiscal 2024 adjusted earnings per share (EPS) of $2.66, above the $2.32 consensus of analysts compiled by Visible Alpha. Revenue fell 1.3% to $2.21 billion, missing forecasts.

Smucker noted gross profit jumped 15.3% to $913.3 million, which it attributed primarily to “a favorable impact from the acquisition of Hostess Brands, lower costs, higher net price realization, and favorable volume/mix.”

The company sees fiscal 2025 adjusted EPS of $9.80 to $10.20, with revenue up 9.5% to 10.5%. In 2024 the figures were $9.94 and a decrease of 4.1%, respectively.

Smucker shares surged 6% but are still nearly 8% lower for 2024.

–Bill McColl

Robinhood Buys Bitstamp To Expand Crypto, International Business

10 hr 25 min ago

Online trading platform Robinhood Markets (HOOD) agreed to buy European cryptocurrency exchange Bitstamp for about $200 million, in a deal that will expand Robinhood’s cryptocurrency and international business, according to a release Thursday.

“Acquiring a global exchange will significantly accelerate Robinhood Crypto’s expansion worldwide,” Robinhood said, noting that Bitstamp has over 50 active licenses and registrations across the globe, and will bring customers from across Europe and Asia along with the U.S. to its platform.

The deal will help grow Robinhood’s presence outside of the U.S., as well as its Robinhood Crypto business. The company also recently moved to expand with products like credit cards, and by offering its app in the United Kingdom.

Robinhood shares jumped over 5% contributing to their 78% gain since the start of the year.

–Aaron McDade

Lululemon Stock Jumps After Company Raises Full-Year Earnings Guidance

11 hr 10 min ago

Lululemon Athletica (LULU) shares gained after the activewear retailer posted better-than-expected quarterly results, raised its full-year earnings guidance amid an improved second-half inventory outlook, and boosted its stock buyback program.

In the first quarter ending April 28, the athletic apparel retailer posted earnings of $2.54 per share, comfortably ahead of the $2.38-a-share figure expected by analysts. Revenue in the period of $2.21 billion rose 10% from a year earlier to edge past the $2.19 billion Street estimate.

Lululemon forecast EPS of $14.27 to $14.47 for the full fiscal year, versus its earlier forecast of $14 to $14.20.

In addition, the company, which repurchased $296.9 million of its shares in the first quarter, authorized an additional $1 billion to its stock buyback program, indicating management’s confidence of the company’s strategy and execution moving forward.

Lululemon shares have traded within a falling wedge since late March, a bullish chart pattern that signals a potential upward price movement. Indeed, the stock sits poised to break above the wedge’s top trendline.

Looking ahead, investors should monitor if the price can reclaim the key $335 level, an area where the shares may encounter selling pressure from a horizontal line linking a series of price action over the past 21 months. A close above this closely-watched level opens the door for a move up to higher resistance around $387.

Lululemon shares rose 4% but are still down around 35% this year.

–Tim Smith

Stocks Making the Biggest Moves in Early Trading

12 hr 11 min ago

Gains:

Nvidia (NVDA): Shares rose 1.2% in premarket trading after surging yesterday to a market capitalization of more than $3 trillion, overtaking Apple (AAPL) and trailing only Microsoft (MSFT) to be the world’s second-largest company by market value,

Taiwan Semiconductor Manufacturing Company (TSM): ADRs in the world’s largest contract chip maker gained 1.6% amid the AI-fuelled enthusiasm for Nvidia shares.

Lululemon Athletica (LULU): Shares jumped 9% after the athletic-wear maker raised its full-year profit guidance and upped its buyback program by $1 billion after a quarterly earnings beat. 

Losses:

Five Below (FIVE): Shares tumbled 19% after the discount retailer cut its sales outlook for the year.  

Nio (NIO): Shares fell 5% after the Chinese EV maker posted a wider first-quarter loss than analysts had expected and also fell short of revenue forecasts.

Stock Futures Steady

12 hr 49 min ago

Dow futures were little changed in premarket trading Thursday.

S&P futures little changed.

Nasdaq futures were up 0.1%.