Jobs So Bad Markets Green
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CLOSING BELL
Jobs So Bad Markets Green
The market started red and wavered Wednesday morning before rising to a green close. Early morning macroeconomic data from ADP showed private payrolls cut 32,000 jobs net in November, the worst one-month cut back in three years. The market did its best to forget the data, and hope the Fed was for sure going to cut rates next week if the labor market stunk that bad.
Rate cut hopes sent smaller names on the S&P 500 like On Semiconductor higher. It looked like Kevin Hassett is the surefire pick after a report that White House advisors were aiming to make Scott Bezzent the top economic Advisor if Hassett moves to the Fed Chair position.
Retail names Macy’s and Dollar Tree reported better than expected earnings in Q3, and gave raised guidance for the holidays, but it wasn’t enough for the big box store.
Big names in general were still volatile, Microsoft and AI stocks fell early on after a classic The Information investigative piece that found internal AI sales goals were shrinking at the majority OpenAI owner.
After the bell, we got a windfall of AI and related software stock reports. 👀
$SPY ( ▼ 0.14% ) $QQQ ( ▼ 0.47% ) $IWM ( ▲ 0.5% ) $DIA ( ▼ 0.04% )
AFTER THE BELL
Wednesday’s AI Gauntlet
AI and AI look-alike software companies were the name of the Game in the post-market Wednesday.
The largest report was from Salesforce $CRM ( ▲ 1.02% ) the cloud giant for managing client accounts that the sales team forgot about months ago beat expectations on profitability with adjusted EPS of $3.25, and reported revenue of $10.26 billion, up about 9% from last year.
Shares jumped 6% after the report, but pulled back some. The company raised its full-year adjusted EPS guidance and offered an upbeat revenue forecast for the coming quarter, citing strong demand for its AI and Data offerings.
Snowflake $SNOW ( ▼ 11.03% ), the cloud data platform, saw its shares tumble after hours despite reporting solid growth. It was one of the top trending names on Stocktwits, and while the company posted strong product revenue, the market reacted negatively to the lack of a substantial increase in its full-year product revenue guidance. The stock was up 11% in the past two weeks leading up to earnings, Stocktwits users pointed out.
C3.ai $AI ( ▲ 0.93% ), an enterprise AI software firm, beat expectations… by reporting a smaller-than-anticipated adjusted loss of $0.25 per share. Revenue for the quarter also slightly edged out the consensus estimate at $75.1 million. C3 gave guidance that met expectations, but it wasn’t enough to convince investors now was a good time to buy.
The automation software leader UiPath $PATH ( ▲ 17.5% ) beat expectations on both the top and bottom lines. The stock surged 8% after hours, providing better-than-expected revenue guidance for the upcoming quarter, driven by strong growth in its Annual Recurring Revenue.
Dan Ives, speaking on Bloomberg TV after the bell, said the most recent round of earnings from AI accelerators and related firms showed that artificial intelligence spending was reaching another inning, but maybe the 3rd or 4th inning, and it might go into overtime.
“In this arms race, everyone’s focused on putting stakes in the ground, whether it’s Nvidia, OpenAI, Snowflake,” Ives said. “Look, they get criticism for circular financing and other issues, but we’re talking about three to 4 trillion that’s going to be spent next few years. This is not the time to look at this from the back seat. It’s time to be aggressive.”
He is a massive tech bear, and leads Wedbush’s prediction of a 20% climb in tech stocks next year at least, while bears watch the party from outside, he said.
“It’s still 10:30pm, and that party goes to 4am.” Ives said.
SPONSORED
Insiders Predict Market Disruption Worth “30 Amazons”
Jeff Bezos surprised investors when he revealed that one emerging technology could be the key to Amazon’s future success…
In fact, Bezos argues that “it’s hard to overstate the impact” of this game-changing technology. The CEO of ARK Investments also predicted this technology would be worth $80 trillion by 2030, which would be as large as:
• 30 Amazons
• 20 Microsofts
• 16 Nvidias
What in the world could be worth 30 Amazons?
The answer is a tech breakthrough transforming every walk of life, exciting many on Wall Street. And one company is the backbone of this entire industry.
In fact, according to The Verge, manufacturers pushing this technology forward are “wholly dependent” on this one tiny company.
The good news is that you can find out all about this company and tech today because The Motley Fool laid out the full story on this incredible tech trend in an exclusive report.
*3rd Party Ad. Not an offer or recommendation by Stocktwits. See disclosure here.
TRENDING NEWS
Drug Maker Explodes After Experimental Therapy Makes Key Results
Capricor Therapeutics stock skyrocketed today, hitting the top trending spot on Stocktwits $CAPR ( ▼ 11.08% ) after its Deramiocel therapy met goals in a pivotal Phase 3 muscular dystrophy trial.
The drug is a cell therapy for a type of muscular dystrophy, and the study showed strong signals that it helped muscle and heart function. The dosage was administered to 1-6 patients, mixed with a double-blind placebo, every 3 months over the course of a year. Basically, those taking the drug showed half the rate of upper limb muscle deterioration, and 91% preservation in heart rate function compared to placebo.
The news was so big it sent the stock climbing, and even made Martin Shkreli eat his words. The avid twitter poster said the company was lying, (something he would know a thing or two about in the pharma industry) but still said he made a bad call, doubting in the past the study would meet endpoints.
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POPS & DROPS
Top Stocktwits News Stories 🗞️
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President Trump rescinded Biden-era fuel economy rules, calling them “expensive.”
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Oracle stock rose after Wells Fargo called it a leader in the AI “super-cycle.”
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Robotics stocks surged after reports of a Trump administration executive order to accelerate development.
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Martin Shkreli called his short position a “bad call” after Capricor’s DMD trial delivered a surprise win
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Eli Lilly’s Jaypirca was granted traditional FDA approval for treating certain blood cancers after pre-treatment.
Don’t miss a story! Follow @StocktwitsNews for a live feed in real time. ✍️
STOCKTWITS VIDEO
Venezuela “Freedom” Play, Taiwan Risk & The Nvidia Doomsday Scenario
Cem Karsan is back and immediately accuses America of doing its favorite thing: “bringing freedom” to Venezuela. The boys walk through how this isn’t about drugs or democracy, it’s about oil, OPEC, the Monroe Doctrine 2.0, and cutting a quiet grand bargain with Russia and China over Ukraine and Taiwan. Venezuela becomes a chess piece, not a charity case.
WHAT’S ON DECK
Tomorrow’s Top Things 📋
Economic data: Continuing Jobless Claims (8:30 AM), Initial Jobless Claims (8:30 AM), FOMC Member Bowman Speaks (12:00 PM).📊
🛏️ Pre-Market Earnings Previews:
Kroger Co. $KR ( ▼ 6.56% ) : The grocery giant is expected to report adjusted EPS of $1.04 per share. Analysts are looking for continued strength in Kroger’s retail sales and updates on its large merger with Albertsons.
Dollar General Corp. $DG ( ▲ 11.42% ) : Wall Street forecasts that the discount retailer will announce adjusted earnings of $0.92 per share on revenue of $10.61 billion. The focus will be on same-store sales growth, margin recovery efforts, and any signs of continued consumer trade-down to discount shopping.
UP Fintech Holding Ltd $TIGR ( ▲ 2.77% ), $0.21/ share EPS.
🌕️ After-Market Earnings :
ChargePoint Holdings Inc $CHPT ( ▲ 1.68% ) : The EV charging network operator is expected to report a quarterly adjusted loss of $1.31 per share on revenue of $96 million for the third quarter. Investors will scrutinize gross margins and guidance.
DocuSign Inc $DOCU ( ▲ 1.16% ) : The e-signature and agreement cloud provider is projected to announce adjusted earnings of $0.91 per share on revenue of $806.13 million for the third quarter.
SentinelOne Inc $S ( ▲ 0.97% ) : The cybersecurity AI platform is expected to report adjusted earnings of $0.05 per share on revenue of $256 million for the third fiscal quarter.
Ulta Beauty Inc $ULTA ( ▼ 1.09% ) : The beauty retailer is expected to post adjusted earnings of $4.6 per share on revenue estimated to reach $2.71 billion for the third quarter.
Stitch Fix Inc $SFIX ( ▼ 0.77% ) : Analysts forecast that the online personal styling service will report an adjusted loss of $0.07 per share on revenue of $336 million for the third quarter.
P.S. You can listen to all of these earnings calls on Stocktwits.
Links That Don’t Suck 🌐
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*3rd Party Ad. Not an offer or recommendation by Stocktwits. See disclosure here.
Get In Touch 📬
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