The biggest risk to valuations is what happens to 10-year rates, says Barclays' Venu Krishna
Venu Krishna, Barclays head of U.S. Equity Strategy, joins 'The Exchange' to discuss Barclays lifting it S&P target to 6,050.
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Stock Market Today: Market higher after jobs numbers; Tesla recoups a bit
Stock Market Today: Market higher after jobs numbers; Tesla recoups a bit originally appeared on TheStreet. In the first hour of trading stocks are sharply higher. At last check the Dow 30 were up 1.1%, the S&P 500 added 1.02%, the Nasdaq Composite tacked on 1.19% and the Russell 2000 moved up 1.23%. The stronger-than-expected jobs numbers are prompting the market move. The S&P has ticked up past 6000 for the first time since late February. Tesla shares rebounded a bit, 4.2% at last check, from the drubbing they took yesterday as the schism between CEO Elon Musk and President Donald Trump burst wider. Yesterday, the big news was that Best Buddies Elon Musk and President Trump had broken up. That sent markets into a topsy-turvy tailspin, knocking 14% off of Tesla's () share price. People seem surprised? But today is a new day and Trump and Musk are, or are not, scheduled to have a phone call following a cooling-off period overnight. Time will tell. The big news today is jobs! And the news is good for workers. The U.S. Bureau of Labor Statistics reported this morning that payroll employment increased by 139,000 in May, leaving the unemployment rate unchanged at 4.2%. This was better than expected, though it does show some softening over prior months' growth. Investors are cheering the news, with stock market futures rallying before the market open. S&P 500 futures are now up nearly 0.8% from yesterday's close and 0.4% since the release of this data. Gold and crude oil are both higher this morning, although each had a different reaction to the U.S. economic news. Crude oil rallied on economic strength, while gold initially spiked lower, then recouped. Do you know what's not doing as well? The bond market. U.S. treasuries are lower across the curve, sending yields, which move in the opposite direction of prices, higher. Why are investors selling bonds if the news was so good? The president and others have been calling for the Federal Reserve to lower interest rates. A strong economy suggests that those cuts may not be needed. Chairman Jerome Powell may choose to stay the course and any rate cuts could be pushed out toward year-end. Which stocks should you be watching today? Over on TheStreet Pro, Sarge Guilfoyle reports that Lululemon () and DocuSign () are getting pounded after their earnings reports highlighted poor guidance. Broadcom () provided stronger-than-expected guidance but is now trading around 3% lower. Here's a chart of Broadcom for the past five trading days, including after-hours action, shown in grey. Stock Market Today: Market higher after jobs numbers; Tesla recoups a bit first appeared on TheStreet on Jun 6, 2025 This story was originally reported by TheStreet on Jun 6, 2025, where it first appeared. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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an hour ago
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Why Lululemon Athletica Stock Crashed Today
Lululemon Athletica stock beat on earnings last night -- barely. Guidance is the bigger worry, with Lululemon forecasting much lower Q2 earnings than Wall Street expected. Trump's tariffs turmoil appears to be to blame. 10 stocks we like better than Lululemon Athletica Inc. › Lululemon Athletica (NASDAQ: LULU) stock got torn up on Friday, tumbling 20.2% through 11:55 a.m. ET despite beating earnings (barely) last night. Heading into the company's Q1 2025, analysts expected Lululemon to post $2.59 per share in profit on $2.37 billion in quarterly sales. Lululemon nailed the revenue target, and beat by the proverbial penny, with $2.60 per share earned. Sales grew 7% year over year, but same-store sales were up only 1%. Gross profit margins grew, but operating margins sank -- down 110 basis points to 18.5%. Still, on the bottom line, Lulu managed to grow its earnings by about 2%, to the aforementioned $2.60 per share. Earnings growth did lag sales growth significantly, however, because of the slimmer profit margin. Yet even so, CFO Meghan Frank emphasized the fact that sales did grow faster, and said she was "pleased with the start to our second quarter" as well. But should she be? Turning to guidance, Lululemon says Q2 sales will grow 7% or 8% to as high as perhaps $2.56 billion, with earnings between $2.85 per share and $2.90. Problem is, up on Wall Street, they wanted to hear Lulu promise $3.32 per share -- and that's clearly not going to happen. Worse, full-year guidance sees sales growth slowing to as little as 5% to 7% ($11.15 billion to $11.3 billion), and earnings are supposed to range from $14.58 to $14.78 per share. Analysts blame President Trump's tariffs policy for the weakening sales outlook. But whoever's to blame, the results aren't encouraging. Valued at about 18 times current-year forecast earnings, Lululemon stock costs too much for mid-single-digit growth. For the time being, I'm afraid it's probably a "sell." Before you buy stock in Lululemon Athletica Inc., consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Lululemon Athletica Inc. wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $674,395!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $858,011!* Now, it's worth noting Stock Advisor's total average return is 997% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Lululemon Athletica Inc. The Motley Fool has a disclosure policy. Why Lululemon Athletica Stock Crashed Today was originally published by The Motley Fool Sign in to access your portfolio
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an hour ago
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Quantum Breakthrough: D-Wave Soars Over 1,000% in a Year
D-Wave Quantum Inc. (NYSE:QBTS) stock surged more than 10% on Friday, extending a rally that tops 150% this month. The gains reflect progress across hardware, software and enterprise deployments. Warning! GuruFocus has detected 3 Warning Signs with QBTS. Over the past year, QBTS has climbed about 1,281%, far outstripping the Internet Software industry's 35% rise and the S&P 500's 12%. Rigetti Computing (NASDAQ:RGTI) and IonQ (NYSE:IONQ) have also jumped but lag D-Wave, up 840.6% and 402%, respectively. In Q1 2025, D-Wave's 1,200-qubit Advantage2 prototype solved a complex magnetic simulation in minutes, a task estimated to take one million years on the Frontier supercomputer. That real-world demonstration of quantum supremacy underscored the firm's annealing approach. The company also scaled up its Advantage2 system to more than 4,400 qubits, boosting coherence times and connectivity for tackling optimization tasks and AI challenges. D-Wave unveiled a Proof of Quantum Work model suggesting blockchain energy use could drop by up to 1,000x. Corporations such as Ford Otosan and NTT DOCOMO are piloting D-Wave's systems for manufacturing and telecom optimization. Investors may view these advances as validation of the technology's commercial potential. This article first appeared on GuruFocus. Sign in to access your portfolio
