Stock Market Today Mid-Morning Updates
On Friday, the Dow Jones Industrial Average is up by 170 points, one day after a continued selling of the broader stock market. The Dow is locked in a steep correction, as defined by a drop of 10% or more from a prior high. The S&P 500 is also on the brink of joining the Nasdaq in a bear market. China cuts a key rate to try to boost its embattled economy. In detail, it is cutting a benchmark reference rate for mortgages by an unexpectedly wide margin Friday. This is the second reduction this year in this key rate as China seeks to revive the country’s housing sector in the second-largest economy in the world.
Share of Foot Locker (NYSE: FL) were up by 5.61% today after it reported an adjusted quarterly profit of $1.60 per share, $0.05 above estimates. Revenues for the quarter were slightly below forecasts. DoorDash (NYSE: DASH) stock is up today after it announced the authorization of a $400 million stock buyback program. The company also says that the move will offset dilution stemming from its employee stock compensation program.
Among the Dow Jones leaders today, shares of Apple are up by 1.8% today while Microsoft (NASDAQ: MSFT) is up by 1.49%. Meanwhile, Disney (NYSE: DIS) and Nike (NYSE: NKE) are trading higher by 0.45% and 1.84% respectively on Friday. Among the Dow financial leaders, Visa (NYSE: V) is up by 1.76% while JPMorgan Chase (NYSE: JPM)is flat.
Shares of EV leader Tesla (NASDAQ: TSLA) are down by 3.55% on Friday. Rival EV companies like Rivian (NASDAQ: RIVN) are down by 2.70%. Lucid Group (NASDAQ: LCID) is down by 2.91% today. Chinese EV leaders like Nio (NYSE: NIO) and Xpeng Motors (NYSE: XPEV) are trading higher today.
Dow Jones Today: U.S. Treasury Yields Trading At 2.9%
Following the stock market opening on Friday, the S&P 500, Dow, and Nasdaq are trading higher at 0.35%, 0.18%, and 0.32%. Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (NASDAQ: QQQ) is up by 0.20% while the SPDR S&P 500 ETF (NYSEARCA: SPY) is up by 0.30%.
The benchmark 10-year U.S. Treasury yield currently trades at 2.9%, continuing the trend of falling rates this week as the markets end a turbulent week. The Dow for instance is already headed for its eighth-straight negative week. Investors fear that a recession could be coming, leading them to rotate their equities into bonds, pushing prices higher and yields lower. Inflation also continues to affect the markets, with this latest slew of retail earnings reporting that inflation has eaten into profits.
[Read More] Top Stock Market News For Today May 20, 2022
Deckers Outdoor In Focus After Posting Record Figures In Latest Quarter
Deckers Outdoor (NYSE: DECK) is making a splash at today’s opening bell. For the most part, this is apparent seeing as DECK stock is now gaining by over 17% now. Before going into the details, here’s a brief introduction to Deckers. In essence, Deckers is a major player in the consumer footwear industry today. Overall, the company’s Uggs boots product line would be among its most popular offerings. Introductions aside, DECK stock seems to be benefitting from the company’s latest quarterly financial report.
Diving in, Deckers posted stellar figures across the board for its fourth fiscal quarter. In the press release, it states that the company’s total sales are up by 31.7% year-over-year. This adds up to a total of $736 million. Also in the press release, Deckers’ earnings per share for the quarter is $2.51, more than double year-over-year. Additionally, Deckers’ direct-to-consumer sales are also seeing gains of 22.2% over the same period. With these respectable gains, the company appears to be ending the fiscal year on a high note.
On the whole, CEO Dave Powers notes that “Fiscal year 2022 was another record year for Deckers, as we delivered both revenue and earnings per share growth above twenty percent.” In particular, Deckers’ Ugg boots generated total sales of about $2 billion, according to the company.
Palo Alto Stocks Gains Following Beats On Top And Bottom Lines In Latest Earnings Update; Boosts Full-Year Forecast
Another head-turner in the stock market today would be Palo Alto Networks (NASDAQ: PANW) or PANW, for short. Namely, PANW stock is currently up by over 9% at today’s opening bell. This comes after PANW reported commendable figures across the board in its third fiscal quarter financial release. According to the report, the company’s quarterly revenue is $1.39 billion. Moreover, PANW’s earnings per share for the quarter are $1.79. To put things into perspective, consensus figures on Wall Street are $1.36 billion and $1.68 respectively. Not forgetting, PANW’s total revenue and total quarterly billings are also up by 29% and 40% year-over-year respectively. With these figures in mind, I could understand the current hype around PANW stock now.
Providing further commentary on the company’s latest performance is CEO Nikesh Arora. He highlights, “We saw strong top-line growth in Q3, which is a testament to our teams’ consistent execution in capitalizing on the strong cybersecurity demand trends.” Because of all this, PANW, according to the press release, is also lifting several of its outlooks for the fiscal year. In detail, the company is guiding for an adjusted earnings per share in the range of $7.43 to $7.46 and revenue between $5.481 billion and $5.501 billion. For reference, consensus analysts’ projections from Refinitiv are earnings of $7.29 per share and revenue of $5.46 billion
Looking forward, Arora notes that PANW will continue to focus on two key components of its business. In his words, these would be “operating margin expansion and free cash flow conversion.” With the company seemingly riding the wave of demand for its cybersecurity services now, PANW stock could be in focus.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.