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Tag: Consumer Goods

  • Durable-goods orders get a boost from military spending

    Durable-goods orders get a boost from military spending

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    The numbers: Orders for manufactured goods jumped 1.1% in April largely because of the military, but business investment also rose sharply in a positive sign for the economy.

    Economists polled by the Wall Street Journal had forecast a 0.8% decline. Durable goods are items meant to last a long time.

    Yet orders fell 0.2% if transportation is excluded, the government said Friday. The transportation segment is a large and volatile category that often exaggerates the ups and downs in industrial production.

    The pace of orders has slowed sharply over the past year and is now just slightly positive. Orders rise in an expanding economy and shrink in a contracting one.

    In a good sign, business investment rose a sharp 1.4% after a string of weak readings. Companies invest more when they expect the economy to improve, but it remains to be seen if it’s the blip or the start of a trend.

    Big picture: The industrial side of the economy has largely been sidelined by rising interest rates and a shift in consumer spending away from manufactured goods.

    What has kept the economy afloat is an increase in spending on services such as travel, recreation and hospitality.

    The divide in the economy is likely to persist for while and leave the U.S. more susceptible to a recession.

    Market reaction: The Dow Jones Industrial Average
    DJIA,
    -0.11%

    and S&P 500
    SPX,
    +0.88%

    were set to open mildly higher in Friday trades.

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  • Why Intel’s stock is falling as Nvidia leads the rest of the semiconductor sector on a massive surge

    Why Intel’s stock is falling as Nvidia leads the rest of the semiconductor sector on a massive surge

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    Chip stocks experienced a significant surge Thursday in the wake of Nvidia Corp.’s upbeat commentary on AI-fueled demand — with one notable exception.

    Shares of Intel Corp.
    INTC,
    -5.52%

    were down more than 5% in afternoon trading Thursday, leading Dow Jones Industrial Average
    DJIA,
    -0.11%

    laggards by a wide margin, on a day when Nvidia Corp.’s
    NVDA,
    +24.37%

    stock was up 26% and the PHLX Semiconductor Index
    SOX,
    +6.81%

    was ahead 6%.

    Read: Chip index heads for highest close in 13 months as Nvidia momentum lifts semiconductor stocks

    Nvidia delivered a stratospheric beat on its quarterly revenue outlook Wednesday afternoon, with executives discussing how spending on artificial intelligence is already starting to drive sizable financial benefits for the company. That discussion has Wall Street thinking that many other chip makers will also be able to capitalize on the same wave of interest in the hot technology — shares of Monolithic Power Systems Inc.
    MPWR,
    +17.46%
    ,
    Advanced Micro Devices Inc.
    AMD,
    +11.16%

    and Taiwan Semiconductor Manufacturing Co.
    2330,
    +3.43%

    TSM,
    +12.00%

    all joined Nvidia in gaining by double-digit percentages in Thursday’s session.

    Intel, though, was a key outlier. Nvidia’s commentary seemed to make investors more worried that Intel is behind the curve on what some see as a massive technological revolution.

    Nvidia CFO on record-breaking forecast: ‘The inflection point of AI is here’

    Intel’s revenue and profits from central processing units look “even more at risk” after Nvidia’s report, while Intel doesn’t have “any real” competitive position in graphics processing units or generative-AI compute, wrote Mizuho’s Jordan Klein, a desk-based analyst associated with the company’s sales team and not its research arm.

    Nvidia’s earnings call “will reinforce the negative view that [Intel] and all their CPU share is a major loser and share donor to GPU, ASICs and lower power ARM design chips on the way,” Klein added.

    While Nvidia GPUs typically would run alongside CPUs from either Intel or AMD, Nvidia has been making inroads in CPUs. Chief Financial Officer Colette Kress said on Nvidia’s call that the company has seen “growing momentum for Grace with both CPU-only and CPU-GPU opportunities across AI and cloud and supercomputing applications.”

    Read: ‘Ride the Nvidia wave.’ Wall Street says the ‘undeniably pricey’ stock can keep roaring.

    Nvidia is perceived to be ahead of the pack in AI-related computing technology, but AMD is at least in a better position than Intel, with more of a one-stop shop across CPUs and GPUs. That’s likely why AMD’s stock is riding on Nvidia’s coattails Thursday, up more than 10% in afternoon action.

    AMD is “the only other real GPU supplier,” Klein wrote, though the company “could lose CPU spend in process and [has] a far way to go to catch [Nvidia].”

    In his view, it “will take some time for more advanced and higher performance GPU and software platform to ramp and really drive upside potential” at AMD. “But seeing how fast and much [Nvidia] benefited, few will want to wait and see how long that takes for AMD.”

    A more clear beneficiary, he noted, is Taiwan Semiconductor, whose stock was up more than 12% Thursday. You “cannot get any of these GPUs, inference, etc. without their fabs,” according to Klein.

    As for Intel, Klein likes that the company is approaching a second-quarter bottom and positioned to capitalize on a personal-computer refresh, but he said its stock “feels totally stuck at best and could get shorted.”

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  • AB InBev Stock Falls Again as Controversy Continues to Exact Toll

    AB InBev Stock Falls Again as Controversy Continues to Exact Toll

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    It’s another down day for


    Anheuser-Busch InBev


    putting the stock on pace for its worst month in nearly two years.


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  • ‘Taco Tuesday’ is for everyone, argues Taco Bell. Taco John’s says it owns the trademark to the phrase.

    ‘Taco Tuesday’ is for everyone, argues Taco Bell. Taco John’s says it owns the trademark to the phrase.

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    CHEYENNE, Wyo. (AP) — Declaring a mission to liberate “Taco Tuesday” for all, Taco Bell is asking U.S. regulators to force Wyoming-based Taco John’s to abandon its longstanding claim to the trademark.

    Too many businesses and others refer to “Taco Tuesday” for Taco John’s to be able to have exclusive rights to the phrase, Taco Bell asserts in a U.S. Patent and Trademark Office filing that is, of course, dated Tuesday.

    It’s the latest development in a long-running beef over “Taco Tuesday” that even included NBA star LeBron James making an unsuccessful attempt to claim the trademark in 2019.

    “Taco Bell believes ‘Taco Tuesday’ is critical to everyone’s Tuesday. To deprive anyone of saying ‘Taco Tuesday’ — be it Taco Bell or anyone who provides tacos to the world — is like depriving the world of sunshine itself,” the Taco Bell filing reads.

    A key question is whether “Taco Tuesday” over the years has succumbed to “genericide,” New York trademark lawyer Emily Poler said. That’s the term for when a word or phrase become so widely used for similar products — or in this case, sales promotions — they’re no longer associated with the trademark holder.

    Well-known examples of genericide victims include “cellophane,” “escalator” and “trampoline.”

    “Basically what this is about is you cannot trademark something that is ‘generic,’ ” Poler said. “That means it doesn’t have any association with that particular source or product.”

    Basketball legend James — a well-known taco lover — encountered this problem when he tried to trademark “Taco Tuesday” in 2019. The Patent and Trademark Office, in a ruling that didn’t refer to Taco John’s, deemed “Taco Tuesday” too much of a “commonplace term” to qualify as a trademark.

    With more than 7,200 locations in the U.S. and internationally, Taco Bell — a Yum Brands
    YUM,
    -2.45%

    chain along with Pizza Hut, KFC and the Habit Burger Grill — is vastly bigger than Cheyenne-based Taco John’s. Begun as a food truck more than 50 years ago, Taco John’s now has about 370 locations in 23 mainly in western and midwestern states.

    The chain’s size hasn’t discouraged big-time enforcement of “Taco Tuesday” as trademark, which dates to the 1980s. In 2019, the company sent a letter to a brewery just five blocks from its corporate headquarters, warning it to stop using “Taco Tuesday” to promote a taco truck parked outside on Tuesdays.

    Actively defending a trademark is required to maintain claim to it, and the letter was just one example of Taco John’s telling restaurants far and wide to stop having “Taco Tuesdays.”

    Taco John’s responded to Taco Bell’s filing by announcing a new two-week Taco Tuesday promotion, with a large side of riposte.

    Press release: Ring the Bell! Every Day is Taco Tuesday® at Taco John’s

    “I’d like to thank our worthy competitors at Taco Bell for reminding everyone that Taco Tuesday is best celebrated at Taco John’s,” CEO Jim Creel said in an emailed statement. “We love celebrating Taco Tuesday with taco lovers everywhere, and we even want to offer a special invitation to fans of Taco Bell to liberate themselves by coming by to see how flavorful and bold tacos can be at Taco John’s all month long.”

    The filing is one of two from Taco Bell involving “Taco Tuesday.” One contests Taco John’s claim to “Taco Tuesday” in 49 states, while a similar filing contests a New Jersey restaurant and bar’s claim to “Taco Tuesday” in that state. Both Taco John’s and Gregory’s Restaurant and Bar in Somers Point, N.J., have been using “Taco Tuesday” for over 40 years.

    A Taco John’s franchisee in Minnesota first came up with “Taco Twosday” to promote two tacos for 99 cents on a slow day of the week, Creel told the Associated Press in a recent interview.

    The Patent and Trademark Office approved the Taco John’s “Taco Tuesday” trademark in 1989. Even with its many letters, Creel said, the company — established in 1969 in Cheyenne, Wyo. — has never had to go to court over the phrase.

    He’s not feeling too picked on, either, by the much bigger Taco Bell. “It’s OK. It’s kind of nice that they’ve noticed,” Creel said.

    From the archives (January 2022): Taco Bell takes taco subscription program nationwide

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  • 20 AI stocks expected to post the highest compound annual sales growth through 2025

    20 AI stocks expected to post the highest compound annual sales growth through 2025

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    Things move quickly in the world of artificial intelligence. It is easy to sit back and complain about developments that could be disruptive, but sometimes investors are best served by putting emotions aside and observing new developments and how they affect markets. Could AI developments and related trends make you a lot of money?

    Below is a new screen showing a group of AI-oriented companies expected to increase their sales most rapidly through 2025, based on consensus estimates among analysts polled by FactSet. Then we show expected revenue growth rates for the largest AI-oriented companies in the screen.

    Over the long haul, many businesses might perform more efficiently by employing AI. Maybe this technology can create an economic revolution similar to the one that moved the majority of the working population away from agricultural labor during the 19th and 20th centuries.

    Back in February, we screened 96 stocks held by five exchange-traded funds focused on AI and related industries and listed the 20 that analysts thought would rise the most over the following 12 months.

    Three months is a long time for AI, and the shakeout hasn’t even started.

    Read: Congress and tech seem open to regulating AI efforts, but that doesn’t mean it will happen

    There is no way to predict how politicians will react to perceived or real threats of AI and machine learning. And the largest U.S. tech players are doing everything they can to employ the new technology and remain dominant. But that doesn’t mean they will grow more quickly than smaller AI-focused players.

    A new AI stock screen

    Once again we will begin a screen with these five ETFs:

    • The Global X Robotics & Artificial Intelligence ETF
      BOTZ,
      +0.97%

      BOTZ was established 2016 and has $1.8 billion in assets under management. The fund tracks an index of companies listed in developed markets that are expected to benefit from the increased utilization of robotics and AI. There are 44 stocks in the BOTZ portfolio, which is weighted by market capitalization and rebalanced once a year. Its largest holding is Intuitive Surgical Inc.
      ISRG,
      +0.53%
      ,
      which makes up 10% of the portfolio, followed by Nvidia Corp.
      NVDA,
      +3.30%

      at 9.4%.

    • The iShares Robotics and Artificial Intelligence Multisector ETF
      IRBO,
      +1.64%

      holds 116 stocks that are equal-weighted, as it tracks a global index of companies that derive at east 50% of revenue from robotics or AI, or have significant exposure to related industries. This ETF was launched in 2018 and has $304 million in assets.

    • The $246 million First Trust Nasdaq Artificial Intelligence & Robotics ETF
      ROBT,
      +1.83%

      has 107 stocks in its portfolio, with a modified weighting based on how directly companies are involved in AI or robotics. It was established in 2018.

    • The Robo Global Artificial Intelligence ETF
      THNQ,
      +1.81%

      has $26 million in assets and was established in 2020. I holds 69 stocks and isn’t concentrated. It uses a scoring system to weight its holdings by percentage of revenue derived from AI, with holdings also subject to minimum market capitalization and liquidity requirements.

    • The newest ETF on this list is the WisdomTree Artificial Intelligence and Innovation Fund
      WTAI,
      +2.42%
      ,
      which was established in December and has $13 million in assets and holds 73 stocks in an equal-weighted portfolio. According to FactSet, stocks are handpicked and selected companies “generate at least 50% of their revenue from AI and innovation activities, including those related to software, semiconductors, hardware technology, machine learning and innovative products.”

    Altogether and removing duplicates, the five ETFs hold 270 stocks of companies in 23 countries. We first narrowed the list to 197 covered by at least nine analysts and for which consensus sales estimates are available through calendar 2025. We used calendar-year estimates because some companies have fiscal years that don’t match the calendar.

    Here are the 20 screened AI-related companies expected by analysts to have the highest compound annual growth rates (CAGR) for sales from 2023 through 2025. Sales estimates are in millions of U.S. dollars. The list also shows which of the above five ETFs holds each stocks.

    Company

    Ticker

    Estimated sales – 2023 ($mil)

    Estimated sales – 2024 ($mil)

    Estimated sales – 2025 ($mil)

    Two-year estimated sales CAGR through 2025

    Held by

    BioXcel Therapeutics Inc.

    BTAI,
    -2.47%
    $5

    $39

    $121

    411.5%

    WTAI

    Luminar Technologies Inc. Class A

    LAZR,
    +8.82%
    $86

    $266

    $588

    161.0%

    ROBT, WTAI

    BlackBerry Ltd.

    BB,
    +6.01%
    $685

    $769

    $1,925

    67.6%

    ROBT

    Credo Technology Group Holding Ltd.

    CRDO,
    +10.29%
    $183

    $259

    $363

    40.9%

    IRBO

    SentinelOne Inc. Class A

    S,
    +1.05%
    $619

    $881

    $1,176

    37.9%

    WTAI

    Wolfspeed Inc.

    WOLF,
    +5.02%
    $982

    $1,323

    $1,860

    37.6%

    WTAI

    SK hynix Inc.

    000660,
    +1.66%
    $18,319

    $27,899

    $34,542

    37.3%

    WTAI

    Mobileye Global Inc. Class A

    MBLY,
    +1.67%
    $2,109

    $2,782

    $3,920

    36.3%

    ROBT, WTAI

    Snowflake Inc. Class A

    SNOW,
    +1.42%
    $2,811

    $3,863

    $5,139

    35.2%

    IRBO, THNQ, WTAI

    Lemonade Inc.

    LMND,
    +8.08%
    $395

    $471

    $712

    34.2%

    THNQ, WTAI

    Nio Inc. ADR Class A

    NIO,
    +1.39%
    $11,874

    $16,733

    $21,304

    33.9%

    ROBT

    Stem Inc.

    STEM,
    +4.88%
    $607

    $833

    $1,055

    31.8%

    WTAI

    Upstart Holdings Inc.

    UPST,
    +10.37%
    $547

    $768

    $938

    31.0%

    BOTZ, WTAI

    Cloudflare Inc. Class A

    NET,
    +5.84%
    $1,284

    $1,669

    $2,194

    30.7%

    THNQ

    Samsara Inc. Class A

    IOT,
    +1.42%
    $830

    $1,062

    $1,364

    28.2%

    THNQ

    Ambarella Inc.

    AMBA,
    +3.45%
    $287

    $355

    $472

    28.2%

    IRBO, ROBT, THNQ, WTAI

    iflytek Co. Ltd. Class A

    002230,
    -1.34%
    $3,561

    $4,582

    $5,851

    28.2%

    THNQ

    Tesla Inc.

    TSLA,
    +4.41%
    $99,558

    $128,412

    $161,061

    27.2%

    ROBT, THNQ, WTAI

    CrowdStrike Holdings Inc. Class A

    CRWD,
    +2.40%
    $2,935

    $3,793

    $4,739

    27.1%

    THNQ, WTAI

    PB Fintech Ltd.

    543390,
    +1.39%
    $358

    $462

    $573

    26.5%

    IRBO

    Source: FactSet

    Click the tickers for more about each company or ETF.

    Click here for Tomi Kilgore’s detailed guide to the wealth of information for free on the MarketWatch quote pages.

    We have screened for expected revenue growth, rather than for earnings or cash flow, because in a newer tech-oriented business area, investors are most likely to consider the top line as companies sacrifice profits to build market share.

    It is important to do your own research if you consider purchasing any individual stock, to form your own opinion about a company’s ability to remain competitive over the long term. Starting from the top of the list, BioXcel Therapeutics Inc.
    BTAI,
    -2.47%

    is expected to show exponential sales growth, but that is from a low expected baseline this year.

    What about the largest AI-related companies held by these ETFs?

    Here are the largest 20 companies in the screen by market capitalization, ranked by expected sales CAGR from 2022 through 2025. Once again the sales estimates are in millions of U.S. dollars, but the market caps are in billions.

    Company

    Ticker

    Estimated sales – 2023 ($mil)

    Estimated sales – 2024 ($mil)

    Estimated sales – 2025 $mil)

    Two-year estimated sales CAGR through 2025

    Market Cap ($bil)

    Held by

    Tesla Inc.

    TSLA,
    +4.41%
    $99,558

    $128,412

    $161,061

    27.2%

    $528

    ROBT, THNQ, WTAI

    Nvidia Corp.

    NVDA,
    +3.30%
    $29,839

    $36,877

    $46,154

    24.4%

    $722

    BOTZ, IRBO, ROBT, THNQ, WTAI

    Taiwan Semiconductor Manufacturing Co. Ltd. ADR

    TSM,
    +5.83%
    $71,434

    $86,284

    $101,112

    19.0%

    $445

    ROBT, WTAI

    Advanced Micro Devices Inc.

    AMD,
    +2.23%
    $22,976

    $26,823

    $30,359

    15.0%

    $163

    IRBO, ROBT, THNQ, WTAI

    ASML Holding NV ADR

    ASML,
    +2.83%
    $28,974

    $32,374

    $37,796

    14.2%

    $263

    THNQ, WTAI

    Microsoft Corp.

    MSFT,
    +0.95%
    $223,438

    $251,028

    $282,397

    12.4%

    $2,318

    IRBO, ROBT, THNQ, WTAI

    Samsung Electronics Co. Ltd.

    005930,
    -0.61%
    $200,595

    $227,286

    $252,129

    12.1%

    $292

    IRBO, WTAI

    Amazon.com Inc.

    AMZN,
    +1.85%
    $559,438

    $626,549

    $702,395

    12.1%

    $1,164

    IRBO, ROBT, THNQ, WTAI

    Adobe Inc.

    ADBE,
    +3.34%
    $19,470

    $21,784

    $24,276

    11.7%

    $158

    IRBO, THNQ

    Netflix Inc.

    NFLX,
    +1.86%
    $33,915

    $38,067

    $42,275

    11.6%

    $148

    IRBO, THNQ

    Tencent Holdings Ltd.

    700,
    -0.58%
    $88,727

    $99,212

    $110,556

    11.6%

    $422

    IRBO, ROBT

    Salesforce Inc.

    CRM,
    +2.37%
    $34,392

    $38,273

    $42,786

    11.5%

    $205

    IRBO, THNQ

    Alphabet Inc. Class A

    GOOGL,
    +1.11%
    $299,810

    $333,077

    $369,195

    11.0%

    $710

    IRBO, ROBT, THNQ, WTAI

    Intel Corp.

    INTC,
    -1.20%
    $51,060

    $57,799

    $62,675

    10.8%

    $122

    IRBO, ROBT

    Meta Platforms Inc. Class A

    META,
    +1.53%
    $125,901

    $139,545

    $154,259

    10.7%

    $528

    IRBO, WTAI

    Alibaba Group Holding Ltd. ADR

    BABA,
    +2.17%
    $134,140

    $148,206

    $162,199

    10.0%

    $235

    ROBT, THNQ

    Texas Instruments Inc.

    TXN,
    +1.20%
    $17,941

    $19,433

    $20,799

    7.7%

    $148

    IRBO

    Apple Inc.

    AAPL,
    +0.36%
    $390,845

    $416,761

    $445,956

    6.8%

    $2,706

    IRBO, WTAI

    Siemens Aktiengesellschaft

    SIE,
    +2.55%
    $84,681

    $89,145

    $93,925

    5.3%

    $130

    ROBT

    Johnson & Johnson

    JNJ,
    -0.20%
    $98,761

    $100,990

    $103,870

    2.6%

    $414

    ROBT

    Source: FactSet

    Tech-stock picks that are small and focused: This fund invests in unsung innovators. Here are 2 top choices.

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  • Berkshire Bought Capital One, Unloaded 2 Banks

    Berkshire Bought Capital One, Unloaded 2 Banks

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    Berkshire Hathaway Sold U.S. Bancorp, Bank of New York Stock. Here’s What It Bought.

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  • Walmart, Alibaba, Target, and More Stocks to Watch This Week

    Walmart, Alibaba, Target, and More Stocks to Watch This Week

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    Walmart, Alibaba, Target, and More Stocks to Watch This Week

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  • New peanut-allergy skin patch shows promise: ‘This would fill a huge unmet need’

    New peanut-allergy skin patch shows promise: ‘This would fill a huge unmet need’

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    An experimental skin patch may soon allow increased protection for toddlers who are allergic to peanuts, according to a new study published in the New England Journal of Medicine.

    The patch, named Viaskin, is coated with a small amount of peanut protein that is absorbed into the skin and would offer some protection against an accidental peanut ingestion that so many parents fear at birthday parties, in school cafeterias or on play dates.

    If additional testing pans out, “this would fill a huge unmet need,” Dr. Matthew Greenhawt, an allergist at Children’s Hospital Colorado who contributed to the study, told the Associated Press.

    There is no cure for food allergies. The number of Americans who are allergic to peanuts is estimated at 6.1 million, according to FARE, one of the largest private funding sources for food-allergy research.

    About 2% of U.S. children are allergic to peanuts, some so severely than even a tiny exposure can cause a life-threatening reaction. Their immune systems overreact to peanut-containing foods, triggering an inflammatory cascade that causes hives, wheezing or worse. Some youngsters outgrow the allergy, but most must avoid peanuts for life and carry rescue medicine to stave off a severe reaction if they accidentally ingest an allergen.

    In 2020, the Food and Drug Administration approved the first treatment to induce tolerance to peanuts — an “oral immunotherapy” named Palforzia that children ages 4 to 17 consume daily to keep up the protection.

    The new study, which featured work from dozens of medical professionals in the U.S. and abroad, took samples from 362 toddlers with a peanut allergy. The toddlers were initially tested to see how high a dose of peanut protein they could tolerate. Then they were randomly assigned to use the Viaskin patch or a lookalike placebo patch every day.

    After a year of treatment, they were tested again, and about two-thirds of the toddlers who used the Viaskin patch could safely ingest more peanut protein safely. One in three of the toddlers who were given the dummy patch also could safely ingest more peanuts, but Greenhawt said it’s likely those children had outgrown the allergy.

    Deaths from allergic reactions to any food numbed a few hundred per year, according to the CDC. But each year there are about 200,000 emergency-room visits caused by allergic reactions to food.

    The Associated Press contributed to this report.

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  • Here’s how to play oil-industry stocks for long-term growth of 20% or more

    Here’s how to play oil-industry stocks for long-term growth of 20% or more

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    Oil demand is likely to hold up longer than many people expect during the anticipated transition to electric vehicles. And changes in the industry point to oilfield services companies as good long-term growth investments as offshore production ramps up.

    Below is a list of oil producers and related companies favored by two analysts who have followed the industry for decades.

    U.S….

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  • 6 Companies That Raised Their Dividends This Week

    6 Companies That Raised Their Dividends This Week

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  • U.S. stock futures see volatile trading on Fed and bank angst; Apple results loom

    U.S. stock futures see volatile trading on Fed and bank angst; Apple results loom

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    U.S. stock futures were inching higher Thursday as traders contemplated the latest Fed decision, more banking sector stress, and Apple’s impending results.

    How are stock-index futures trading
    • S&P 500 futures
      ES00,
      -0.10%

      rose 3 points, or 0.1%, to 4111

    • Dow Jones Industrial Average futures
      YM00,
      -0.08%

      added 6 points, or 0%, to 33498

    • Nasdaq 100 futures
      NQ00,
      +0.20%

      climbed 40 points, or 0.3%, to 13140

    On Wednesday, the Dow Jones Industrial Average
    DJIA,
    -0.80%

    fell 270 points, or 0.8%, to 33414, the S&P 500
    SPX,
    -0.70%

    declined 29 points, or 0.7%, to 4091, and the Nasdaq Composite
    COMP,
    -0.46%

    dropped 55 points, or 0.46%, to 12025.

    What’s driving markets

    Results from Apple
    AAPL,
    -0.65%
    ,
    the market’s biggest company, which are due after the closing bell on Thursday, will move into sharper focus as the session progresses.

    But before that investors must contend with disappointment over the Federal Reserve’s policy stance and renewed fretting about the U.S. regional banking sector that have delivered volatile trading over the past 24 hours and left stock-index futures struggling to rally.

    The S&P 500 slid 0.7% on Wednesday after the Fed again raised interest rates and irked some traders by seeming equivocal on whether the implied pause in monetary tightening meant the cycle of rate hikes were at an end and cuts could come soon.

    “As widely expected, the Federal Reserve raised interest rates by a further 0.25%, which of itself was not market moving. Of rather more interest was the implication that the rate hiking cycle had now ended, even though the Fed remains poised to act again if necessary,” said Richard Hunter, head of markets at Interactive Investor.

    “At the same time, the Fed dampened expectations for any interest rate reductions in the immediate future, contrary to investor hopes that some kind of easing may follow before the end of the year, depending on the severity of any potential recession,” he added.

    Traders will also be keeping an eye out for any surprises when the European Central Bank delivers its policy decision at 2:15 p.m. Central European time (8:15 a.m. Eastern).

    Then, late on Wednesday, just hours after Fed Chair Jay Powell said that the banking sector was “sound and resilient” shares in PacWest Bancorp
    PACW,
    -1.98%

    plunged 50% in after-hours trading after reports the struggling regional bank’s executives were weighing a possible sale.

    Stock index futures dived further in response on fears of continued turmoil in the financial sector. But though they have managed to recover much of those secondary losses the febrile action signals a nervous market, analysts noted.

    “It looks like more trouble is brewing for the U.S. banking sector, on the contrary to what Powell said yesterday,” said Ipek Ozkardeskaya, senior analyst at Swissquote.

    Other company results due on Thursday include Moderna
    MRNA,
    -0.96%
    ,
    Peloton
    PTON,
    +2.56%
    ,
    Kellogg
    K,
    +0.49%
    ,
    before the opening bell rings, followed by Lyft
    LYFT,
    +2.35%

    and Shopify
    SHOP,
    -1.09%

    after the close.

    U.S. economic updates set for release on Thursday include weekly initial jobless claims; first quarter productivity and unit labor costs; and the March trade deficit. All are due at 8:30 a.m. Eastern.

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  • Qualcomm stock sinks as weak smartphone demand pushes inventory drawdown out to ‘at least the next couple quarters’

    Qualcomm stock sinks as weak smartphone demand pushes inventory drawdown out to ‘at least the next couple quarters’

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    Qualcomm Inc. shares fell in the extended session Wednesday after the chip maker said inventory issues will remain past June because of a downturn in handset demand and the company’s outlook disappointed.

    After declining 2.8% to close the regular session $112.83, Qualcomm
    QCOM,
    -2.82%

    shares started sliding after the release of the company’s results at Wednesday’s close, and sank to a deficit of more than 7% after hours by the time the executives’ call with analysts ended. Shares ended the extended trading session down 6.6%.

    On the conference call, Qualcomm Chief Executive Cristiano Amon told analysts that the “evolving macroeconomic backdrop has resulted in further demand deterioration, particularly in handsets, at a magnitude greater than we previously forecasted.”

    Earlier, Qualcomm had forecast adjusted earnings of $1.70 to $1.90 a share on revenue of $8.1 billion to $8.9 billion for the fiscal third quarter. Analysts had estimated earnings of $2.17 a share on revenue of $9.13 billion for the third quarter.

    Qualcomm shares sank after hours Wednesday.


    FactSet

    Last quarter, Qualcomm said inventory issues would persist into June, and Wall Street pretty much accepted it. Qualcomm’s inventory problems go back to last year, when the company’s share price fell in November to lows not seen in more than two years after executives said there was up to 10 weeks of inventory in the channel, and forecast a $2 billion shortfall coming off record sales.

    A drop in handset demand, however, has extended the time frame of inventory drawdowns considerably past the previously forecast end of June, the company said. As its largest business segment, Qualcomm handset sales fell 17% to $6.11 billion from a year ago.

    “As a result, we’re operating under the assumption that inventory drawdown dynamics remain a significant factor for at least the next couple quarters,” Amon told analysts. “Additionally, while expectations are for a rebound in China demand in the second half of the calendar year, we have not seen evidence of meaningful recovery and are not incorporating improvements into our planning assumptions.”

    The company reported fiscal second-quarter net income of $1.7 billion, or $1.52 a share, compared with $2.93 billion, or $2.57 a share, in the year-ago period. The chip maker reported adjusted earnings, which exclude stock-based compensation expenses and other items, of $2.15 a share, compared with $3.21 a share in the year-ago period. Total revenue for the quarter fell to $9.28 billion from $11.16 billion in the year-ago period.

    Analysts surveyed by FactSet had forecast $2.15 a share on revenue of $9.09 billion, based on Qualcomm’s forecast of $2.05 to $2.25 a share on revenue of $8.7 billion to $9.5 billion.

    In Qualcomm’s other end-market segments, auto sales rose 20% to $447 million and Internet-of-Things sales fell 24% to $1.39 billion for the second quarter, the company said.

    Late Monday, auto chip supplier NXP Semiconductor NV
    NXPI,
    -2.30%

    topped Wall Street expectations, and shares rallied Tuesday, while last week, another big supplier to the auto market, Texas Instruments Inc. 
    TXN,
    -0.36%

    said that sales to the auto industry remained strong.

    Qualcomm shares already lag the broader chip sector and market, and were up only 3% year to date at Wednesday’s close. In comparison, the PHLX Semiconductor Index
    SOX,
    -1.32%

    has surged 17%, the S&P 500 index 
    SPX,
    -0.70%

    has gained 7%, and the tech-heavy Nasdaq Composite Index 
    COMP,
    -0.46%

    has grown 15%.

    In other chip earnings, Advanced Micro Devices Inc.
    AMD,
    -9.22%

    shares dropped 9.2% Wednesday after the chip maker’s optimism for the second half of the year late Tuesday did not rub off on analysts.

    Read: ‘AI for us is broader than cloud,’ AMD CEO tells analysts, but chip maker still needs PC recovery to improve margins

    And last week, Intel Corp.
    INTC,
    +2.96%

    reported its largest quarterly loss ever, but saw its shares rise because PC and data-center sales, while on the decline, had come in better than expected. Intel also lowered expectations on its forecast.

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  • Chegg, Arista, Uber, Pfizer, DuPont, and More Stock Market Movers

    Chegg, Arista, Uber, Pfizer, DuPont, and More Stock Market Movers

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    • Order Reprints
    • Print Article

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  • TripAdvisor lawsuit highlights companies moving to Nevada from Delaware

    TripAdvisor lawsuit highlights companies moving to Nevada from Delaware

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    A lawsuit filed in Delaware in April against the travel site Tripadvisor and its majority shareholder is highlighting what may be a growing trend: companies seeking to shift their incorporations to Nevada to avoid Delaware’s more stringent and entrenched legal standards.

    The suit was filed on behalf of a group of Tripadvisor Inc. TRIP shareholders, who are hoping to persuade the Delaware Chancery Court to stop the company from pushing ahead with board-approved plans to reincorporate in Nevada, arguing their motive is to take…

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  • Intel tops Wall Street estimates, CEO says data-center business is improving

    Intel tops Wall Street estimates, CEO says data-center business is improving

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    A previous version of this article included an inaccurate number for Intel’s second-quarter profit forecast. It has been updated.

    Intel Corp. shares surged in the extended session Thursday, swinging from an initial loss after the chip maker topped Wall Street estimates for the quarter, and Chief Executive Pat Gelsinger assured analysts that the company’s data-center business was improving.

    Intel…

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  • U.S. stocks head for best day in 2 weeks on strong earnings from Meta and other big-tech names

    U.S. stocks head for best day in 2 weeks on strong earnings from Meta and other big-tech names

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    U.S. stocks rose on Thursday, on track for their biggest gain in two weeks, as another batch of strong big-tech earnings reports helped boost the broader market while offsetting signs of slowing economic growth.

    How are stocks trading

    On Wednesday, the Dow Jones Industrial Average fell 229 points, or 0.68%, to 33,302 as worries about First Republic Bank FRC overshadowed upbeat big-tech earnings.

    What’s driving markets

    For…

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  • Roku stock gains after earnings beat, though ad market remains challenging

    Roku stock gains after earnings beat, though ad market remains challenging

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    Roku Inc. shares moved 2% higher in Wednesday’s after-hours action as the streaming-media company cited continued ad-market pressures but topped expectations for its latest quarter.

    The company reported a first-quarter net loss of $193.6 million, or $1.38 a share, compared with a loss of $26.3 million, or 19 cents a share, in the year-earlier quarter. Analysts tracked by FactSet were expecting a $1.47 loss per share.

    Roku…

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  • Why the U.K. is blocking Microsoft’s deal for Activision and what comes next

    Why the U.K. is blocking Microsoft’s deal for Activision and what comes next

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    A U.K. regulator made the surprising decision Wednesday to block Microsoft Corp.’s deal for Activision Blizzard Inc. in a further sign of resistance to the power of Big Tech.

    The U.K.’s Competition and Markets Authority announced Wednesday that it would prohibit the $69 billion deal as the merger could hurt competition in the nascent market for cloud gaming. The decision comes after the agency said in late March that it no longer thought the deal would threaten console gaming, which is a vastly larger and more established…

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  • From meme stocks to empty shelves: The top 5 reasons Bed Bath & Beyond failed

    From meme stocks to empty shelves: The top 5 reasons Bed Bath & Beyond failed

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    Bed Bath & Beyond went from homeware powerhouse to the retail doghouse over the course of the last decade. 

    But its final push into Chapter 11 bankruptcy protection Sunday resulted from a mix of bad decisions and forces beyond its control, the company explained in a new court filing. In the 93-page document, Holly Etlin, chief restructuring officer and chief financial officer of Bed Bath & Beyond BBBY, tried to explain how things went so wrong. Here are the top five choices and moments that ultimately spelled the retailer’s…

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