Stock futures are slipping after the S&P 500 experienced its third consecutive losing session. Treasury yields have also paused, following the 10-year note’s closure at its highest level since 2007. Amidst this market volatility, several key companies are set to make moves today. Applied Materials, the maker of semiconductor-manufacturing equipment, reported fiscal third-quarter earnings that exceeded Wall Street expectations, leading to a 2.8% increase in premarket trading. On the other hand, test equipment manufacturer Keysight Technologies issued a weaker-than-expected fiscal fourth-quarter outlook, causing its stock to fall by 11% in premarket trading. The luxury fashion company Farfetch also experienced a significant slump of 38% after its second-quarter sales missed analysts’ expectations. Meanwhile, Bill Holdings, the provider of software for small businesses, projected fiscal 2024 revenue that fell below analysts’ expectations, resulting in a 4.5% decline in its share price. However, discount retailer Ross Stores posted better-than-expected second-quarter earnings and raised its guidance, leading to a 5.3% increase in its stock. Lastly, investors are eagerly awaiting earnings reports from Deere, XPeng, Estee Lauder, and Palo Alto Networks, with the latter garnering particular attention due to its unusual decision to schedule its quarterly earnings release for after the close of trading. This has sparked speculation that Palo Alto Networks may deliver news that shareholders may not like.
Stock Futures Slip Following S&P 500’s Losing Streak
Stock futures are slipping on Friday, following the S&P 500’s third-consecutive losing session. This decline comes as Treasury yields paused after the 10-year note closed at its highest level since 2007. Investors are closely watching the market for any signs of a potential downturn.
Applied Materials Beats Expectations, Shares Rise
Applied Materials, a maker of semiconductor-manufacturing equipment, reported fiscal third-quarter earnings that surpassed Wall Street expectations. The company also provided a positive outlook for the fourth quarter, leading to a 2.8% increase in its shares during premarket trading. CEO Gary Dickerson expressed confidence in the company’s strategy and investments, particularly in key technologies such as the Internet of Things (IoT) and artificial intelligence (AI).
Keysight Technologies Disappoints with Q4 Outlook
Keysight Technologies, a test equipment manufacturer, issued a weaker-than-expected fiscal fourth-quarter outlook. The company forecasted earnings of $1.83 to $1.89 per share on revenue between $1.29 billion and $1.31 billion. However, analysts had anticipated higher profits of $2 per share on revenue of $1.39 billion. As a result, Keysight’s stock fell 11% in premarket trading.
Farfetch Misses Sales Expectations, Shares Plummet
Luxury fashion company Farfetch reported second-quarter sales of $572 million, which fell short of analysts’ expectations of $650 million. As a result, the company’s shares slumped 38%. It remains to be seen how Farfetch will bounce back from this setback and regain investor confidence.
Bill Holdings Falls Short of Revenue Expectations
Bill Holdings, a software company that helps small businesses with bill payments, announced an expected fiscal 2024 revenue range of $1.29 billion to below $1.31 billion. This projection fell below analysts’ expectations, causing Bill shares to decline by 4.5%. The company will need to reassess its strategy and potentially make adjustments to meet market expectations.
Ross Stores Exceeds Expectations, Raises Guidance
Discount retailer Ross Stores reported better-than-expected second-quarter earnings and raised its guidance. As a result, the company’s stock rose by 5.3%. This positive performance demonstrates Ross Stores’ ability to navigate the challenging retail environment and attract customers with its discounted offerings.
Unusual Earnings Release Raises Concern for Palo Alto Networks
Palo Alto Networks, a cybersecurity company, has taken the unusual step of scheduling its quarterly earnings release for after the close of trading. This decision has raised concerns among investors, as companies rarely announce significant financial news on Friday afternoons, especially during the summer. Speculation suggests that Palo Alto Networks may deliver news that shareholders may not like.
In conclusion, the stock market is experiencing some volatility with the S&P 500’s recent losing streak. While some companies, such as Applied Materials and Ross Stores, are exceeding expectations and seeing positive stock movements, others like Keysight Technologies, Farfetch, and Bill Holdings are facing challenges and disappointing investors. Investors should closely monitor the market and keep an eye on upcoming earnings reports to make informed investment decisions.
Takeaways:
- The S&P 500 has experienced a losing streak, causing stock futures to slip.
- Applied Materials and Ross Stores have reported better-than-expected earnings, leading to positive stock movements.
- Keysight Technologies, Farfetch, and Bill Holdings have disappointed investors with weaker-than-expected financial performance.
- Palo Alto Networks’ unusual earnings release has raised concerns among investors.
