Stock Market Rises Today: S&P 500, Nasdaq Advance Following Three-Day Slumps; Oracle Surges due to Excellent Earnings Reports, Boeing Falls Following Air India Plane Crash Incident
Trading Sessions Heat Up with Every Bit of News
Markets dance to the rhythm of daily developments in economies and trade negotiations. On this Thursday afternoon, stock Indexes are inching higher, keeping their toes crossed for more truths about trade agreements and fresh economic stats.
The S&P 500 and Nasdaq are bumping up 0.2% in the afternoon trading, rebounding from a three-day slide. The Dow, on the other hand, is inching ahead by a meager 0.1%, as a plane crash in India keeps its wings clipped.
Stocks have seen a bull run as of late, with the S&P 500 flirting with a record high, thanks to optimism about better trade negotiations, strong corporate earnings, and robust economic data. Recently, US and Chinese officials laid the foundation for a trade deal, which still requires the nod from Presidents Trump and Xi Jinping. Additionally, a closely watched report on inflation showed consumer prices rising less than anticipated in May.
Today, inflation figures from the wholesale level came in slightly better than expected, and jobless claims matched economists’ projections. Traders are keeping their fingers crossed for further details about the China trade agreement and a slew of other deals the White House claims to be working on.
Shares of Boeing (BA) took a nose-dive, shedding nearly 5%, following a deadly plane crash in India. Shares of GE Aerospace (GE), the supplier of the plane's engine, slipped by 2%, while Boeing supplier Spirit AeroSystems (SPR) is down 2.5%.
On the bright side, technology heavyweights such as Nvidia (NVDA), Microsoft (MSFT), Apple (AAPL), and Tesla (TSLA) are mixed today, while Amazon (AMZN), Alphabet (GOOG), and Meta Platforms (META) are inching slightly lower after a tumultuous few days. Tesla, which has recovered most of the ground lost due to a public spat between CEO Elon Musk and President Trump, is off 2%.
Among other movers, Oracle (ORCL) is soaring 13% to a record high, with analysts praising Oracle's 'jaw-dropping' growth projections. Several analysts have raised their price targets for Oracle in response to the tech giant's impressive results and optimistic outlook.
Meanwhile, the US dollar index is sliding 0.7%, dipping to its lowest level since 2022 amid ongoing trade uncertainty. The yield on the 10-year Treasury note is at 4.36%, after descending from 4.41% at the previous day's closing and 4.51% in the wee hours of Thursday morning.
Bitcoin is sitting pretty at $107,700, recovering from a dip to $106,600 earlier today. The digital currency hit an all-time high of just below $112,000 on May 22.
West Texas Intermediate futures, the benchmark for US crude oil, is down 0.2% at $68 per barrel, having surged more than 5% yesterday due to geopolitical factors. Gold futures are up 1.8% at $3,405 an ounce, reaching their highest level in a month, as some investors sought refuge in the traditional safe haven amid the stock market downturn.
Oracle's Astonishing Expectations Fuel Analyst Boost
Oracle reported better-than-expected quarterly results and projected strong revenue growth for the upcoming fiscal year, prompting several analysts to lighten their price targets. KeyBanc labeled Oracle's growth prospects as 'breathtaking' and raised its price target to $225 from $200. Oracle CEO Safra Catz expects cloud infrastructure growth to increase from 50% in fiscal 2025 to more than 70% in fiscal 2026 and is aiming for a doubling in remaining performance obligations.
Wedbush Hails Oklo as Nuclear Pioneer
Oklo, a nuclear energy startup, won a contract to supply power to an Air Force base in Alaska on Wednesday, leading Wedbush analysts to predict a bright future for the company. The analysts upgraded their price target to $75 from $55 and believe Oklo is poised to become a 'clear leader' in the nuclear sector as demand for clean energy grows. President Trump's recent executive orders are giving the nuclear energy industry a 'significant tailwind', the analysts added.
Adobe's Earnings Report: What to Expect
Design software developer Adobe is set to report its fiscal second-quarter earnings after the closing bell on Thursday. Investors anticipate a modest movement in Adobe stock, with options pricing suggesting shares could move up to 6.6% in either direction on Friday. However, the stock's average post-earnings movement has been more substantial in the past, with an average jump of 12.6% over the previous four quarters. In March, shares plunged nearly 14% the day after Adobe reported record quarterly revenue but issued an underwhelming outlook. Most analysts remain bullish on Adobe's long-term prospects, with average price targets currently standing at $477, which is 15% above current levels.
- Some traders are anxiously waiting for more details about the China trade agreement and other deals the White House is working on, hoping it will impact the stock market positively.
- Oracle, known for its impressive results and optimistic outlook, saw shares soar by 13% to a record high, making analysts label its growth prospects as 'breathtaking.'
- As the demand for clean energy increases, nuclear energy startup Oklo, which recently won a contract to supply power to an Air Force base in Alaska, is predicted to become a 'clear leader' in the nuclear sector according to Wedbush analysts.
- Despite a tumultuous few days, technology heavyweights such as Nvidia, Microsoft, Apple, Tesla, Amazon, Alphabet, and Meta Platforms still have mixed performances in the stock market.
- In an industry where crypto prices fluctuate rapidly, bitcoin recovered from a dip to $106,600 earlier today and is currently sitting at $107,700, having reached an all-time high of just below $112,000 on May 22.
