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Stock futures traded mostly higher Thursday and tech shares rallied after chip maker
Nvidia
issued a bullish revenue forecast. Futures for the
Dow Jones Industrial Average
fell after Fitch Ratings placed the United States’ top-rated bonds on a negative rating watch because of the impasse in negotiations to raise the debt ceiling.
These stocks were poised to make moves Thursday:
Nvidia
(NVDA), a leading maker of chips used for videogames, artificial intelligence, and cloud computing applications inside PC and server hardware, reported fiscal first-quarter earnings and sales that topped analysts’ expectations. The stock surged almost 26% in premarket trading after the chip maker said it expects fiscal second quarter revenue of $11 billion at the midpoint of its forecast range, well above consensus of $7.2 billion. Nvidia cited surging demand for its chips that enable artificial intelligence applications.
Chip company
Advanced Micro Devices
(AMD) rose 8.7% following Nvidia’s report, and software maker
C3.ai
(AI) jumped 9.3%.
Cloud specialist
Snowflake
(SNOW) was falling 14% after saying it expects fiscal second-quarter product revenue of $620 million to $625 million, below Wall Street estimates of $647 million. For the fiscal year, the company said it expects product revenue of $2.6 billion, an increase of 34%, but below the previous guidance target of $2.7 billion. The company now sees non-GAAP operating margin for the year of 5%, down from a previous forecast of 6%.
Shares of software company
Splunk
(SPLK) rose 9.6% after the company reported an adjusted profit in the fiscal first quarter of 18 cents a share, well ahead of the loss of 13 cents expected by Wall Street, and revenue that rose 11% from a year earlier. Annual recurring revenue was about $3.73 billion, up 16% from a year earlier, and ahead of the company’s target of $3.7 billion. The company also issued a strong forecast for the fiscal second quarter, saying it expects annual recurring revenue of about $3.83 billion, with total revenue of between $880 million and $895 million, ahead of Wall Street consensus of $868 million.
UiPath
(PATH), the automation-software company, declined 8.2% in premarket trading after issuing fiscal second-quarter revenue guidance of between $279 million and $284 million vs. analysts expectations of $284 million.
American Eagle Outfitters
(AEO) was falling 19% after the retailer said it expects fiscal second-quarter revenue “down low-single digits to last year.” In the same quarter a year earlier, American Eagle reported revenue of $1.2 billion.
Nutanix
(NTNX), the cloud-platform company, said it expects fiscal fourth-quarter revenue of $470 million to $480 million in revenue, higher than analysts’ estimates of $452 million. Shares rose 16% in premarket trading.
e.l.f. Beauty
(ELF) posted fiscal fourth-quarter adjusted earnings and revenue that beat Wall Street expectations and provided strong guidance, showing no sign of slowing spending among its consumers. The stock jumped 12%.
Medtronic
(MDT) and
Best Buy
(BBY) are among the companies scheduled to report quarterly earnings before the stock market opens on Thursday, while
Costco Wholesale
(COST),
Workday
(WDAY),
Autodesk
(ADSK),
Marvell Technology
(MRVL),
Gap
(GPS), and
Ulta Beauty
(ULTA) will be reporting after Wall Street closes.