Investing.com — The was roughly unchanged Thursday, weighed down by financials, though continued to keep the 5,000 level in sight as the quarterly earnings season continued.
By 13:46 ET (18:46 GMT), the contract was down 26 points, or 0.1%, was flat to trade at 4,9995.39, and added 0.3%.
PayPal leads financials lower as weaker guidance weighs; Disney shines on Q1 report, dividend hike
PayPal Holdings Inc (NASDAQ:) fell more than 10% to lead the broader financial sector lower after the payment processing company said it expects full-year earnings to be $5.10 a share, missing estimates of $5.48. The softer guidance offset quarterly results that beat estimates on both the top and bottom line.s
The guidance “calls for roughly flattish growth for both transaction gross profit dollars and non-GAAP EPS,” UBS said in a note, suggesting fiscal 2024 will be the third consecutive year of total company gross profit growth hovering around the ~0% growth level.”
Walt Disney Company (NYSE:), meanwhile, jumped more than 12% after the media and entertainment company’s delivered better-than-expected fiscal Q1, hiked its quarterly dividend by 50% and reinistated a $3B share buyback plan this year.
Disney also announced new deals and upcoming events that is likely to boost performance including a major foray into the gaming business, with a $1.5B stake in EPIC Gamess. Most of the newsflow was “nearly all positive,” Macquarie Equity Research said in a note, but still questioned “the offset to the linear networks from direct-to-consumer advances, and the time it will take to bring about meaningful.”
ARM shows AI continue to reign supreme; Ralph Lauren surges as holiday season shopping drives earning beat
Arm Holdings ADR (NASDAQ:) holdings surged 56% after the chip designer’s current quarter guidance topped Wall Street estimates following fiscal Q3 results that beat analyst estimates. The upbeat guidance was driven by strong AI-led demand for its chip designs, which are licensed by major tech firms including Google, Nvidia, Apple.
Ralph Lauren (NYSE:) jumped more than 16% the apparel maker’s better-than-expected quarterly drew a string of upgrades from Wall Street.
“[I]t’s extremely impressive that management has been able to navigate the current macro environment,” Wedbush said as it lifted its price target on the stock to $172 from $125. Ralph Lauren’s average unit retail growth is expected to remain positive, Wedbush added, but at a “lower rate because they have less inflationary costs to pass on to the consumer.”
Labor market continues to show strength as Fed speakers echo higher for longer rates
The number of people in the week ended Feb. 3 fell by 9,000 to 218,000, adding to a slew of recent data showing the labor market remains strong.
The recent strength in the labor market, which threatens to boost wages and inflation, has muddied investor expectations on aggressive Federal Reserve rate cuts this year.
Richmond Fed president Tom Barkin on Thursday acknowledged that “robust” economic growth and a strong tight labor market gives the Fed time to hold off starting the “process of toggling rates down.”