Why investors are watching Apple and Nvidia closely on Friday
1 hour 43 minutes ago
All eyes were on Apple (AAPL) and Nvidia (NVDA) on Friday as the two companies vied to become the second most valuable U.S. company by float-adjusted market capitalization.
Why is this important today? The $70 billion SPDR Technology Select Sector Fund (XLK) will be rebalanced next week based on today’s market close. Due to relatively obscure diversification rules, the weight of individual stocks in the index is capped at 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 — have such drastically different weightings in the index. Apple and Microsoft each make up about 22% of the index, while Nvidia makes up just 6%.
If Nvidia’s float-adjusted cap closes above Apple’s, its weighting in the index will rise above 20% next Friday and Apple’s weighting will be reduced to less than 5%.
With less than half an hour remaining in the session, the companies were neck and neck. Apple shares were down 0.8% and Nvidia was up 1.8%, giving Nvidia a slight edge.
Arm Holdings to Join Nasdaq-100 Index
2 hours 51 minutes ago
Arm Holdings (ARM) could get a boost after Nasdaq announced that the British semiconductor and software design company would be added to the Nasdaq-100 index.
The exchange said that this decision would come before the session on Monday, June 24. Arm will replace satellite programming provider Sirius XM Holdings (SIRI).
The decision came nine months after Arm began trading, following the largest initial public offering (IPO) in the United States since 2021.
After initially rising 6% on the news Friday, Arm Holdings’ American depository receipts (ADRs) reversed trend and were down 2% by late afternoon. Yet they’re up more than 100% so far this year.
-Bill McColl
RH posts bigger-than-expected loss as tough housing market hurts demand
4 hours 22 minutes ago
Shares of RH (RH) fell Friday, a day after the high-end home furnishings retailer posted a wider-than-expected loss and gave muted guidance as the 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, wider than estimates. Revenue fell 1.7% year over year to $727.0 million, although that beat expectations.
CEO Gary Friedman wrote in a letter to shareholders that the company was facing the “most challenging real estate market in three decades” and that he anticipated “business conditions will remain difficult until real estate rates improve.” interest is easing and the real estate market is starting to rebound.” .”
Thus, the company forecasts sales growth for the current quarter of between 3 and 4%, below forecasts. It reiterated its forecast for full-year revenue growth of 8% to 10%.
Trading View
RH shares fell more than 17% on Friday to trade at their lowest level in seven months.
-Bill McColl
Stellantis to shift part of its electric vehicle production due to Chinese tariff concerns
5 hours 38 minutes ago
Shares of Stellantis (STLA) fell Friday after the automaker announced it would shift some electric vehicle (EV) production from China to Europe following threats from European tariff regulators. high customs duties on imports of electric vehicles manufactured in China.
Reports from the company’s Investor Day indicate that CEO Carlos Tavares explained that Stellantis has changed its electric vehicle production plans with its Chinese joint venture partner Leapmotor. Tavares explained that it has adjusted its assembly sites based on higher taxes.
The European Commission, the European Union’s (EU) regulator, warned on Wednesday that new tariffs on electric vehicles made in China would come into force on July 4 unless negotiations with Beijing resolve concerns that Chinese subsidies for electric vehicles gave its makers an advantage over European automakers.
The Commission noted that duties could reach 38.1%.
Shares of Stellantis fell 5% and are down 14% at their lowest level this year.
Adobe Stock Jumps After AI-Powered Earnings Beat: Watch This Key Level
6 hours 16 minutes ago
Shares of Adobe (ADBE) jumped nearly 15% in extended trading Thursday after the software maker reported earnings that beat Wall Street estimates and raised its profit and sales forecasts for the year amid strong demand for its range of generative artificial intelligence (AI) digital media. some products.
In the three months ended May 31, the company reported adjusted earnings of $4.48 per share, above analyst estimates of $4.39 per share. Revenue for the period of $5.31 billion increased 10% from the same quarter last year and exceeded expectations of $5.29 billion.
Adobe now expects adjusted earnings in the range of $18.00 to $18.20 per share, up from $17.60 to $18.00 per share. Annual net revenue is expected to be between $21.40 billion and $21.50 billion, up $100 million from the lower end of that forecast. Analysts had expected adjusted earnings of $18.02 per share on revenue of $21.46 billion.
Adobe said Creative Cloud subscribers are upgrading their plans to access features in Firefly, the company’s generative AI model.
Since hitting a double top between December and February, Adobe shares have been trading in a falling wedge, a bullish chart pattern that indicates potential upward price movement. Most recently, the stock has found buying interest near the wedge’s lower trendline, with volume up slightly over the past week, leading to the company’s quarterly results.
Following the earnings-driven trend breakout on Friday, investors should keep an eye on the $535 level, an area on the chart where price could encounter selling pressure near the 50% Fibonacci retracement level, closely watched, which is also near the descending 200-day moving average and a period of price consolidation in February.
Stocks make biggest move in early trading
6 hours 59 minutes ago
Earnings :
Adobe (ADBE): Shares jumped 15% after the software maker reported better-than-expected results and raised its full-year profit and sales forecasts amid strong demand for its software suite. generative artificial intelligence (AI) digital media products.
Shopify (SHOP): Shares rose 4% after Evercore ISI raised its rating on the e-commerce company to outperform from inline.
Arm Holdings (ARM): Shares of the chip designer rose 3% after Nasdaq announced that the chipmaker would be a member of the Nasdaq 100 and other Nasdaq indexes on June 24, replacing Sirius XM Holdings (SIRI).
Losses:
Stellantis (STLA): Shares fell 4% after the automaker behind Jeep and Fiat said it would shift production of some electric vehicles made in China to Europe to limit European Union tariffs.
RH (RH): Shares fell 10% after the high-end furniture retailer posted a wider-than-expected loss and gave muted guidance as the tight housing market squeezed demand.
Stock futures fall
8 hours 40 minutes ago
Dow futures were down 0.8% in premarket trading.
S&P futures were down 0.5%.
Nasdaq futures were down 0.3%.