Stock Market Today Mid-Morning Updates
On Tuesday, the Dow Jones Industrial Average is down by 230 points, after it rebounded by nearly 2% on Monday. Today, Abercombie & Fitch (NYSE: ANF) is down by over 25% after the retailer reported an unexpected quarterly loss. The company, however, reported better-than-expected revenue. It also says that it was hit by higher costs, which it expects to be a headwind for the remaining duration of the year. Furthermore, Abercombie also cut its outlook for fiscal 2022 in light of these headwinds.
Shares of Insulet (NASDAQ: PODD) are also up today by over 7% today following a report that the medical device maker is in talks to be acquired by Dexcom (NASDAQ: DXCM). Petco (NASDAQ: WOOF) is also up after beating top-and bottom-line estimates for its latest quarter. It also reported better-than-expected comparable-store sales. Shares of Best Buy (NYSE: BBY) were up by over 3% after the company reported a mixed quarter.
Among the Dow Jones leaders, shares of Apple are down by 3.15% today while Microsoft (NASDAQ: MSFT) is also down by 1.61%. Meanwhile, Disney (NYSE: DIS) and Nike (NYSE: NKE) are trading lower by 4.31% and 3.11% respectively on Tuesday. Among the Dow financial leaders, Visa (NYSE: V) is down by 1.75% while JPMorgan Chase (NYSE: JPM) is up by 1.32%
Shares of EV leader Tesla (NASDAQ: TSLA) are down by 5.84% on Tuesday. Rival EV companies like Rivian (NASDAQ: RIVN) are also down by 6.04%. Lucid Group (NASDAQ: LCID) is down by 6.25% today. Chinese EV leaders like Nio (NYSE: NIO) and Xpeng Motors (NYSE: XPEV) are trading lower today.
Dow Jones Today: U.S. Treasury Yields Hovers at 2.8% and Brent Crude Up Despite Recession Fears
Following the stock market opening on Tuesday, the S&P 500, Dow, and Nasdaq are trading lower at 1.72%, 0.75%, and 3.32%. Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (NASDAQ: QQQ) is down by 3.34% while the SPDR S&P 500 ETF (NYSEARCA: SPY) is down by 1.90%.
The benchmark 10-year U.S. Treasury yield currently trades at 2.8% as prices continue to move in the opposite direction of yields. In recent weeks, the markets have been battered as investors worry about rising inflation. There are also worries about whether the central bank’s tightening fiscal policy is able to get inflation under control.
Oil prices continue to tick higher, with Brent crude currently trading at $114 per barrel. European Commission President Ursula von der Leyen said today that she is hoping an agreement to sanction Russian oil will be reached in the coming days. Members of the European Union have been in an oil embargo on Russia for the last few weeks as some member states are blocking the measure. Any sanctions imposed by the EU will require the approval of all member states in order to be implemented.
[Read More] Top Stock Market News For Today May 24, 2022
Snap Stock Dives After Issuing Warning On Potential Revenue and EBITDA Miss In Current Quarter
Shares of Snap (NYSE: SNAP) are on the decline at today’s stock market open. Evidently, SNAP stock is trading lower by over 39% now. On the whole, this movement in the company’s stock comes after its latest update on operations. Diving in, according to a new 8-K SEC filing, Snap anticipates that it will not be hitting its financial goals for the quarter. Speaking on this in further detail is CEO Evan Spiegel. To begin with, Spiegel wrote in a note to employees that Snap will fall short of its own revenue and adjusted earnings targets for the current quarter.
Moreover, the CEO also adds that the company is slowing down its rate of hiring till the end of 2022. Spiegel explains, “Today we filed an 8-K, sharing that the macro environment has deteriorated further and faster than we anticipated when we issued our quarterly guidance last month.” He continues, “As a result, while our revenue continues to grow year-over-year, it is growing more slowly than we expected at this time.” Regarding macro environment headwinds, Snap, alongside other firms that benefit from digital ad revenue, is facing a downturn in demand. The likes of which are likely due to rising inflation and interest rates eating into digital advertising budgets in general.
Alongside Snap, other social media and ad tech firms are also feeling the pinch. Namely, firms like Meta Platforms (NASDAQ: FB), Google parent company Alphabet (NASDAQ: GOOGL), and Pinterest (NYSE: PINS) are also on the decline today. With all this in mind, there would certainly be no shortage of coverage on SNAP stock today.
Zoom Stock Gains Following Earnings Beat And Strong Quarterly Outlook
In other news, Zoom (NASDAQ: ZM) is also turning heads in the stock market today. By and large, this is likely the result of the cloud communications company reporting commendable results in its latest quarterly earnings update. According to the press release, Zoom’s earnings per share for the quarter is $1.03. Also, the company’s total quarterly revenue is $1.07 billion. To put things into perspective, consensus figures on Wall Street are earnings of $0.87 on revenue of $1.07 billion. Because of the earnings beat, I could understand if investors are eyeing ZM stock at today’s opening bell. This could be the case after considering that it is already trading around pre-pandemic levels. As it stands, ZM stock is gaining by over 2% now.
On the operational side, Zoom appears to be hard at work scaling its services to meet the growing needs of its clients. In detail, the company’s total customers contributing over $100,000 in trailing 12 months revenue is now up to 2,916. Year-over-year, this translates to a surge of 46%. According to Zoom CEO Eric Yuan, the company has strong demand across its Zoom Phone, Zoom Rooms, and Enterprise business segments to thank for its performance. Additionally, for the current quarter, Zoom seems to be confident about maintaining its current pace. Based on the information from the press release, it is anticipating revenue of between $1.115 billion to $1.12 billion. For reference, the current consensus on Wall Street is $1.1 billion. As such, investors may be looking at ZM stock at today’s opening bell.