Why Investors Are Watching Apple and Nvidia Closely on Friday
2 hours 21 minutes ago
All eyes were on Apple ( AAPL ) and Nvidia ( NVDA ) on Friday as both companies jockeyed to become the second most valuable company in America by float-adjusted market capitalization.
Why does it matter today? The $70 billion Technology Select Sector SPDR Fund ( XLK ) will rebalance next week based on today's market close. Due to relatively vague diversification rules, the weighting of individual stocks in the index is limited to 23%, and the sum of stocks weighing more than 5% cannot exceed 50%.
That's why Apple, Microsoft, and Nvidia—all worth more than $3 trillion—are weighted so differently in the index. Apple and Microsoft each account for about 22% of the index, while Nvidia accounts for just 6%.
If Nvidia's float-adjusted cap closes above Apple, its weight in the index will rise above 20% next Friday and Apple's weight will fall below 5%.
With less than half an hour left in the session, the companies were neck-and-neck. Shares of Apple were down 0.8% and Nvidia was up 1.8%, giving Nvidia a slight lead.
Arm Holdings to join the Nasdaq-100 index
3 hours 29 minutes ago
Arm Holdings (ARM) may get a boost after Nasdaq announced the inclusion of the British semiconductor and software design company in the Nasdaq-100 index.
The move will take place before trading on Monday, June 24, the exchange said. Arm will replace satellite programming provider SiriusXM Holdings (SIRI).
The decision comes nine months after Arm began trading for the first time after 2021, the largest initial public offering (IPO) in the US.
After initially rising as much as 6% on Friday on the news, Arm Holdings' American Depositary Receipts (ADRs) reversed course and were down 2% in late afternoon. Still, they are up more than 100% so far this year.
-Bill McCool
RH posts bigger-than-expected loss as tight housing market hurts demand
5 hours 1 minute ago
Shares of RH ( RH ) sank on Friday, a day after the upscale home furnishings retailer posted a bigger-than-expected loss and softened guidance after a tight housing market squeezed demand.
The company, formerly known as Restoration Hardware, reported an adjusted loss of $0.40 per share in the first quarter, which was wider than estimates. Revenue fell 1.7% year over year to $727.0 million, though it beat expectations.
Chief Executive Officer (CEO) Gary Friedman wrote in a letter to shareholders that the company faced “the most challenging housing market in three decades,” and that “business conditions are expected to remain challenging.” until interest rates ease and the housing market begins to recover.”
As such, the company forecast sales growth of 3% to 4% in the current quarter, which is lower than forecasts. It reiterated its outlook for full-year revenue growth of 8% to 10%.
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Shares of RH fell more than 17 percent on Friday to trade at their lowest level in seven months.
-Bill McCool
Steelnets chain to shift some EV production over tariff concerns
6 hours 17 minutes ago
Shares of Stellenbosch ( STLA ) fell on Friday after the automaker announced it will move some electric vehicle (EV) production from China to Europe following a crackdown by European regulators on Chinese-made EV imports. After threats of major tariffs.
Chief Executive Officer (CEO) Carlos Tavares explained that Stellantis has changed its EV production plans with Chinese joint venture partner Leapmotor, the company's Investor Day reports said. Tavares explained that he adjusted his assembly sites based on higher duties.
On Wednesday, the European Commission, the European Union's (EU) regulatory arm, warned that new tariffs on Chinese-made EVs will start on July 4 unless talks with Beijing address concerns that China's EV subsidies give its manufacturers an advantage over EU carmakers.
The commission noted that the duty could be as high as 38.1 percent.
Stellantis shares fell 5% and are down 14% to their lowest level this year.
Adobe Stock Jumps After AI-Fueled Earnings Beat—Watch This Key Level
6 hours 55 minutes ago
Shares of Adobe ( ADBE ) rose nearly 15% in extended trading Thursday after the software maker reported earnings that topped Wall Street estimates and strong demand for its creative artificial intelligence (AI) digital media. Between raised its full-year earnings and sales guidance. products.
In the three-month period ended May 31, the company posted adjusted earnings of $4.48 per share, beating analysts' estimates of $4.39 per share. Revenues for the period of $5.31 billion rose 10% from the same quarter last year and met previous expectations of $5.29 billion.
Adobe now expects adjusted earnings to be between $18.00 and $18.20 per share, up from $17.60 to $18.00 per share. It sees annual net sales of $21.40 billion to $21.50 billion, pushing the low end of that forecast to $100 million. Analysts were calling for adjusted earnings of $18.02 per share on revenue of $21.46 billion.
Adobe noted that it is seeing Creative Cloud subscribers upgrade their plans to access the capabilities of Firefly, the company's creative AI model.
Since making a double top between December and February, shares of Adobe have traded within a falling wedge, a bullish chart pattern that indicates a potential price rally. More recently, the stock has seen buying interest near Wedge's lower trendline, with volume picking up slightly over the past week leading up to the company's quarterly results.
Following Friday's earnings-driven breakout from the pattern, investors should keep an eye on the $535 level, an area on the chart where price is facing selling pressure near the closely watched 50% Fibonacci retracement level. May have to, which also sits close to him. The downward sloping 200-day moving average and the February price consolidation period.
Stocks that made the biggest moves in early trade
7 hours 38 minutes ago
Advantages:
Adobe ( ADBE ): Shares rose 15 percent after the software maker posted better-than-forecast results and its entire stock amid strong demand for its creative artificial intelligence (AI) suite of digital media products. Revenue and sales guidance for the year increased.
Shopify ( SHOP ): Shares rose 4% after Evercore ISI raised its rating on the e-commerce company to Outperform Online.
Arm Holdings (ARM): Shares of the chip designer rose 3% after Nasdaq said the chipmaker will join the Nasdaq 100 and other Nasdaq indexes on June 24, replacing Sirius XM Holdings (SIRI).
Disadvantages:
Stellantis (STLA): Shares fell 4% after the automaker behind Jeep and Fiat said it would move production of some Chinese-made EVs to Europe to curb EU tariffs.
RH ( RH ): Shares fell 10 percent after the high-end furniture retailer posted a bigger-than-expected loss and softened guidance due to subdued demand from a tight housing market.
Stock futures fall
9 hours 19 minutes ago
Dow futures were down 0.8 percent in premarket trading.
S&P futures were down 0.5%.
Nasdaq futures were down 0.3 percent.