Stock Market Rebounds Fail to Sustain Momentum as S&P 500 Slips 0.8%
Major U.S. equities indexes reversed early gains to close lower on Wednesday, as Tuesday’s stock market rebound failed to maintain its momentum. The S&P 500 slipped 0.8%, while the Nasdaq dropped 1.1%, and the Dow lost 0.6%.
Super Micro Computer Shares Plummet 20.1%
Super Micro Computer (SMCI) shares plummeted 20.1%, suffering the steepest declines of any stock in the S&P 500, after the server and data storage provider reported lower-than-expected profits for its fiscal fourth quarter. An unexpected drop in adjusted gross margin weighed on Supermicro’s performance. Supermicro also announced a 10-for-1 stock split.
Airbnb Tumbles 13.4% Following Earnings Report
Shares of Airbnb (ABNB) tumbled 13.4% following the company’s second-quarter earnings report. Although the vacation rental platform edged out sales estimates, its profits came in below expectations, and Airbnb warned of a slowdown in U.S. travel demand. Despite decelerating growth in bookings, Airbnb highlighted gains in “nights and experiences” bookings.
Charles River Laboratories International Forecasts Sales Decline
Charles River Laboratories International (CRL) reported slightly better-than-expected profits for the second quarter, but the health care diagnostics company said it now expects sales to decline rather than grow over the full fiscal year. The company forecast softer demand among its global biopharmaceutical clients over the second half of 2024. Charles River shares sank 12.6% on the day.
Fortinet Shares Skyrocket 25.3% on Strong Earnings
Fortinet (FTNT) shares skyrocketed 25.3%, marking Wednesday’s best performance in the S&P 500, after the cybersecurity firm topped sales and profit estimates for the second quarter. Gains in services revenue and record operating margins contributed to the strong results. The company also provided upbeat guidance for the current quarter and touted its leadership in the Secure Access Service Edge (SASE) market.
Axon Enterprise Jumps 18.4% on Strong Quarterly Results
Shares of Axon Enterprise (AXON) jumped 18.4% as the maker of the Taser and other law enforcement equipment released strong quarterly results. Revenue exceeded analysts’ forecasts, and Axon reported an enthusiastic customer response to its Draft One AI product, which generates an initial version of a police report based on recordings from the company’s body cameras.
Global Payments Posts Better-Than-Expected Sales and Profits
Global Payments (GPN) shares added 6.9% after the financial technology provider posted better-than-expected sales and profits for the second quarter. The company also touted new technology partnerships to provide payment services for Minor League Baseball franchises as well as several football clubs in the U.K.
Overall, Wednesday’s trading session saw a mix of positive and negative performances among major U.S. equities. While some companies struggled to meet profit expectations and forecasted sales declines, others exceeded expectations and experienced significant stock price increases. Investors will continue to monitor market trends and company earnings reports as they make investment decisions.
Disclaimer: The information provided in this article is for informational purposes only and should not be considered as financial advice. Investing in the stock market involves risk, and individuals should conduct thorough research and consult with a financial advisor before making any investment decisions.
