S&P 500, Dow, Nasdaq close 0.5% lower ahead of Nvidia results
US stocks (^DJI, ^IXIC, ^GSPC) close Wednesday's session lower by over 0.5% a piece, ahead of Nvidia's (NVDA) long-awaited first quarter earnings results.
Market Domination Overtime's Julie Hyman and Yahoo Finance markets and data editor Jared Blikre recap equity and bond market (^TYX, ^TNX, ^FVX) moves from Wednesday.
Tune in to Yahoo Finance's special live coverage of Nvidia's first quarter earnings here, beginning at 4:15 p.m. on Wednesday, May 28.
To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here.
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Yahoo
12 minutes ago
- Yahoo
Stocks to watch next week: Broadcom, Lululemon, British American Tobacco, Dr Martens and Rémy Cointreau
Tariffs remain in focus as earnings season continues to wind down, but there are still a number of key companies due to report in the coming week. On the back of a strong set of results from chipmaking giant Nvidia (NVDA), attention will now turn to rival Broadcom (AVGO), which is due to report on Thursday. Athletics wear company Lululemon (LULU) is also due to report on Thursday, with focus on its outlook for the current year, after guidance offered at the end of the last financial year failed to impress investors. In London, investors will want to see if British American Tobacco (BATS.L) has continued to generate sales growth from its new categories business, which includes vapes and heated products. Investors will also be keen to see how Dr Martens (DOCS.L) turnaround efforts are progressing when the iconic bootmaker reports its full-year results on Thursday. On the Paris bourse, Rémy Cointreau's ( full-year performance will be in focus, ahead of a new CEO taking the helm at the French spirits company later in June. Here's more on what to look out for: Shares in Nvidia (NVDA) jumped after it reported another blowout quarter on Wednesday, despite the company warning of the impact of export controls that limit its ability to ship products to China. The chipmaker posted revenue of $44.1bn (£32.7bn) for the first quarter, beating expectations of $43.3bn, though earnings per share of $0.81 came in below estimates of $0.93. Derren Nathan, head of equity analysis at Hargreaves Lansdown, said: "The first key takeaway from Nvidia's (NVDA) Q1 print was that demand for accelerated computing remains extremely strong due to the lightning speed roll out of AI. The second is that Nvidia remains the dominant force in this market." "However, with McKinsey predicting a spend of around $7tn to help data centres keep pace with processing demands out to 2030, the market is big enough to accommodate more than just one player," he added. "Broadcom's (AVGO) custom ASIC chips can help hyperscalers lower their average cost of data processing and as such it looks well set to grow its share of the market." Read more: What's behind the surge in AI-related lawsuits? Nathan said that consensus forecasts for Broadcom's (AVGO) second quarter revenue are broadly in line with the company's guidance of approximately $14.9bn, which works out to growth of around 19%. He highlighted that artificial intelligence (AI) is a "growing share of Broadcom's (AVGO) revenue base but there's still more sales coming from non-AI workloads leaving the company exposed to cyclical ups and downs, which is a risk in today's macroeconomic environment. And with 20% of revenue coming from China, markets will be keen to hear the potential impact of export restrictions and tariffs." Nathan added that estimates for Broadcom's (AVGO) third quarter revenue have been falling slightly over the last month and currently stand at $15.8bn. "But with so many moving parts to the picture the company's steer will be a key metric to focus on," he said. Broadcom (AVGO) shares popped after the company posted first quarter results in March that beat on the top and bottom lines, driven by AI chip sales. Adjusted net revenue came in at $14.92bn, versus expectations of $14.61bn, while adjusted earnings per share of $1.60 were ahead of estimates of $1.50. However, fluctuations in the stock since then have left it up just 4.4% year-to-date. Shares in Lululemon (LULU) sunk after its earnings outlook appeared to underwhelm investors, despite the company posting better-than-expected quarterly profits in March. The athletics wear retailer said it expected earnings per share for this year to be in the range of $14.95 to $15.15, which was below expectations of $15.37. On revenue, the company said it expected this to be in the range of $11.15bn to $11.3bn. In addition, Lululemon (LULU) chief financial officer (CFO) told investors on an earnings call that the company was not expecting store traffic to improve this year versus softness out of the gate in the first quarter. Read more: Stocks that are trending today In a note on 12 May, Barclays analysts – which had an "equal weight" rating on Lululemon (LULU) – said they were "cautious" on the stock. They highlighted that the retailer's "We Made Too Much" online clearance section "showed an increase towards the end of the quarter". "During 1Q25, the WMTM category negatively inflected in the final few weeks of the quarter," they said. They said this suggested "potential for weaker exiting trends and building inventory risk". For the first quarter, Lululemon (LULU) said it expected net revenue to come in between $2.34bn and $2.36bn, which would represent growth of 6% to 7%. Diluted earnings per share are expected to be in the range of $2.53 to $2.58 for the quarter. On Wednesday, British American Tobacco (BATS.L) announced that it had sold a 2.5% stake in Indian consumer goods company ITC ( which was worth $1.5bn, according to a Reuters report. The company said that the transaction would give it "greater financial flexibility as it delivers on its commitment to invest behind transformation, deleverage and enhance shareholder returns." The tobacco giant also said that the net proceeds from the trade would be used to extend its existing share buyback programme by an additional £200m ($269.5m), taking the total amount it repurchases in 2025 to £1.1bn. That was up on £900m BAT (BATS.L) said it planned to undertake in buybacks this year back in its preliminary results release in February. Shares tumbled after the release of those results, in which the company flagged £6.2bn ($7.7bn) hit, from a proposed settlement of a long-running lawsuit in Canada. With this provision, the company posted reported profit from operations for the year of £2.74bn. Read more: Government 'megafund' pension plans could give £6k boost to savers BAT (BATS.L) posted a 5.2% decline in reported revenue for the year at £25.9bn, driven by the sale of its businesses in Russia and Belarus in September 2023 and transnational foreign exchange headwinds. However, the company saw 8.9% organic growth from revenue in its new categories business at £3.4bn. Nathan, of Hargreaves Lansdown, said that the company "heads into its upcoming [first-half] trading update with investor attention firmly on its ability to navigate persistent industry headwinds". "Regulatory pressures and rising tobacco taxes continue to weigh on the outlook," he said. "As such, this year's guidance for around 1% sales growth and 1.5–2.5% profit growth currently stands below the group's medium-term targets. The upcoming update will be closely watched for signs that 'new categories' can deliver more meaningful growth and help offset the structural decline in traditional tobacco." In addition, Nathan said that investors "will be watching closely to see if US action to crackdown on illegal competition has had any impact and whether the lifting of a proposed ban on menthol cigarettes has helped the outlook". According to consensus forecasts provided by the company on its website, analysts expect full-year total revenue for 2025 to come in at £26.2bn, including £3.88bn from new category business. Shortly after taking over as Dr Martens (DOCS.L) CEO in January, Ije Nwokorie said in a third quarter trading update that the bootmaker had made "good progress" on turning round performance in the US. He said that the team were focused on "returning the business to sustainable and profitable growth". In the third quarter, Dr Martens (DOCS.L) reported 3% growth in group revenue at £267m, with a 4% increase in direct-to-consumer business in the Americas. "Dr Martens (DOCS.L) is expected to deliver more evidence that it is pulling itself up by its bootstraps and the turnaround is lacing together," said Susannah Streeter, head of money and markets at Hargreaves Lansdown. "It's been reducing inventories and debt, preserving cash and stabilising the business overall." Stocks: Create your watchlist and portfolio "The iconic footwear company has found it hard going stomping new fashion ground overseas, with the US, its biggest market, proving particularly tough," she said. "But in the key autumn/winter season, there were signs that increased investment in marketing was paying off, with new styles winning fans. It's trying to get the heritage models and new innovations in the fashion market." Streeter said that the "performance of the last quarter will be a test" for new CEO Nwokorie. She said that the company's "strategy includes new store roll outs and increasing the direct-to-consumer mix, as well as improving the quality and depth of wholesale distribution. "It's hoped that the Docs will also take a step forward with the appointment of a new chief brand officer, Carla Murphy, a former Adidas ( global executive who also has experience at VF Corporation, the American global apparel and footwear company." In its January trading update, company didn't offer specifics on its guidance for the full year but said its outlook remained unchanged and that it was on track to achieve its objectives. Despite signs of turnaround progress, the stock is still down nearly 19% year-to-date. French cognac maker Rémy Cointreau ( announced on Wednesday that it had appointed Franck Marilly as the company's new CEO, taking over from Eric Vallat, who said last month he would be stepping down. Marilly, who assumes the role on 25 June, has previously worked for Japanese beauty brand Shiseido (4911.T), luxury fashion house Chanel and consumer goods giant Unilever (ULVR.L). The news comes as Rémy Cointreau ( navigates challenges around trade tensions with both the US and China, two of its key markets. In a fourth quarter sales update in April, Rémy Cointreau ( posted an 18% fall in full-year sales at €984.6m (£827.6m). The company flagged a "steep decline" in sales of cognac in China in the fourth quarter, which it said was partly down to "harsh market conditions", among other factors. Read more: UK 'bargain' stocks that have outperformed the market long-term In January, China launched an anti-dumping investigation on brandy imported from the European Union (EU), which was extended in April and included the imposing of temporary duties on imports of brandy. The probe was considered to be in response to EU duties on Chinese electric vehicles. Rémy Cointreau ( said in its April sales update that if the provisional duties were confirmed, the company would "trigger its action plan to mitigate the effects starting in fiscal 2025-26. The impact on fiscal year 2024-25 is marginal." In addition, there is also uncertainty around US tariffs on the EU, with talks between the two ongoing, after president Donald Trump hit pause on his threat to impose 50% duties on the bloc. Investors will be looking at Rémy Cointreau's ( final full-year results on Wednesday for any commentary around the potential impact of these tariff challenges in the year ahead. The company said in April that a €50m (£42m) cost-cutting plan would help protect its operating margin, expecting this to come in between 21% and 22% for the year. It also reiterated its financial targets for 2029-30 of hitting a gross margin of 72% and an operating margin of 33%. Monday 2 June Sirius Real Estate (SRE.L) Campbell's Co (CPB) Tuesday 3 June Chemring (CHG.L) Pennon (PNN.L) Gooch & Housego (GHH.L) Crowdstrike Holdings Inc (CRWD) Ferguson Enterprises Inc (FERG) Dollar General Corp (DG) Hewlett Packard Enterprise (HPE) Nio Inc (NIO) Signet Jewelers (SIG) Wednesday 4 June Paragon Banking (PAG.L) B&M European Value Retail (BME.L) DiscoverIE (DSCV.L) Ramsdens (RFX.L) Dollar Tree Inc (DLTR) GameStop (GME) Thursday 5 June Mitie (MTO.L) Workspace (WKP.L) Young's & Co Brewery (YNGN.L) Fevertree (FEVR.L) Fastenal (FAST) DocuSign (DOCU) Brown-Forman (BF-B) Ciena (CIEN) Wizz Air Holdings (WIZZ.L) CMC Markets (CMCX.L) Friday 6 June ABM Industries Inc (ABM) Caffyns (CFYN.L) You can read Yahoo Finance's full calendar here. Read more: How getting ahead on your tax return can help cut your tax bill Odds of more Bank of England interest rate cuts fall as food inflation rises Trump tariffs to hit UK economy next year, says IMF
Yahoo
17 minutes ago
- Yahoo
Tesla stock poised for another weekly gain as Musk prepares to make full return to company amid alleged drug abuse
Tesla (TSLA) stock was poised for a weekly gain on Friday, capping another wild week of headlines for the carmaker and CEO Elon Musk, who is set to leave his government role on Friday and turn his full focus back to Tesla. Musk is slated to hold a press conference with President Trump from the White House at 1:30 p.m. ET, marking his last day as a special government employee. This comes after the New York Times reported Friday morning that Musk allegedly abused both illicit and pharmaceutical drugs "far more intensely than previously known" while on the campaign trail for Trump. Musk reportedly had a medication box that held about 20 pills, and was taking so much ketamine — a drug with hallucinogenic and dissociative effects — that it was affecting his bladder. Musk also reportedly took ecstasy, psychedelic mushrooms, and Adderall on occasion, sources told the New York Times. Tesla did not immediately respond to requests seeking comment from Yahoo Finance. Despite Friday's shocking report, Tesla stock was still higher for the week, up 4%, and up over 25% for the month of May, following the news that Musk would return to the helm of his various companies. Musk's latest communique earlier this week via his X platform confirmed he was leaving Washington, where he nominally led the controversial Department of Government Efficiency (DOGE), and performing his own RTO (return to work): back to Tesla, SpaceX, and X. "Back to spending 24/7 at work and sleeping in conference/server/factory rooms," he said in part following an X outage, adding that he "must be super focused on 𝕏/xAI and Tesla (plus Starship launch next week), as we have critical technologies rolling out." Musk's SpaceX conducted a test of its Starship rocket and booster on Tuesday. Tesla reportedly will begin robotaxi testing in Austin, Texas, on June 12. Musk confirmed that for "the past several days, Tesla has been testing self-driving Model Y cars (no one in driver's seat) on Austin public streets with no incidents," also confirming a similar Bloomberg report. Musk added that Tesla is planning its first "self-delivery" from the factory to a customer next month. Musk and Tesla have bet the future of the company on self-driving and the ability for its cars to perform robotaxi services. Tesla's dedicated robotaxi, the Cybercab, is slated for a 2026 launch as well. This story is breaking and will be updated throughout the day. Pras Subramanian is a reporter for Yahoo Finance. You can follow him on X and on Instagram. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
30 minutes ago
- Yahoo
This Small Device Poses a Growing Threat to Commercial Airline Safety—What to Know
Drones are one of the biggest threats to commercial flight safety today. According to reports, 64 percent of all near midair collisions surrounding the 30 biggest U.S. airports were caused by drones in 2024. There are more than one million drones registered in the U.S., and all drone owners should follow specific safety guidelines from the of the biggest threats to commercial airliners is actually something small. Drones are increasingly at risk of colliding with commercial aircraft, with 64 percent of all near midair collisions near the 30 biggest U.S. airports in 2024 caused by drones. This is partially due to the increasing number of drones in use. There are over one million registered drones in the national drone registry. Commercial aircraft and drones began having close calls in 2014 when drones first started to become popular. The incidents have steadily increased in frequency since. More drones in the air means more potential problematic encounters and near-misses between the drones and planes. 'Drone operators should avoid flying near airports because it is difficult for manned aircraft to see and avoid a drone while flying," the FAA website states. "Remember that drone operators must avoid manned aircraft and are responsible for any safety hazard their drone creates in an airport environment. For flight near airports in controlled airspace, drone operators must receive an airspace authorization prior to operation. Airspace authorizations come with altitude limitations and may include other operational provisions.' In January 2025, the drone maker DJI decided to turn off its automatic geofencing, which prevented drones from flying into restricted airspace, and replaced it with data sets from the FAA that merely alert drone pilots when they are entering restricted spaces. Also complicating the issue is that the FAA does not have a dedicated system that can detect drones without interfering with commercial aircraft. In March 2023, the FAA's UAS Detection and Mitigation Systems Aviation Rulemaking Committee released 46 recommendations that aim to help with the smooth detection of drones as well as to increase safety, but drone operators have not implemented internal safety measures that can restrict airspace around airports in the U.S. Some airlines, however, have detection systems that can alert pilots to the presence of a drone. It is also hard to collect accurate data about the numbers of near-collisions that occur, as the reports of interactions between drones and planes are voluntary and not automatically collated. 'Anyone flying a drone is responsible for flying within FAA guidelines and regulations," the FAA website states. "That means it is up to you as a drone pilot to know the Rules of the Sky, and where it is and is not safe to fly.' Read the original article on Travel & Leisure
