CVS rises after beating Wall Street estimates

CVS Health rose more than 8% in premarket trading after it reported earnings that beat Wall Street estimates and raised its full-year guidance.

The company posted earnings per share of $2.25, more than the $1.70 analysts polled by FactSet were expecting. It also reported $94.5 billion in revenue, higher than the $93.6 billion analysts estimated. The company now expects full-year earnings of $6 to $6.20 per share, up from $5.75 to $6 per share.

CVS’s insurance arm, Aetna, said that in 2026 it will withdraw from the Affordable Care Act exchange business, which is losing money. It also announced that its pharmacy benefit manager, CVS Caremark, partnered with Novo Nordisk to “increase access” to Wegovy, the blockbuster weight-loss drug.

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Max Knoblauch3h

Airlines and cruise stocks surge as oil prices plunge

Travel stocks are surging on Wednesday, with West Texas Intermediate crude futures down 5% as of 12 p.m. ET, largely on commodity traders’ hopes of a resolution to the US war with Iran.

The decline comes despite the US Energy Information Administration reporting a record plunge in US crude inventories last week. As the country expands its oil exports to reduce the impact of the war in Iran, inventories have fallen by 7.9 million barrels, according to the EIA, indicating a significant drop in domestic supply wiggle room ahead of the summer driving season. Per Reuters, analysts had expected a drop of 2.9 million.

Bloomberg noted that US oil exports have been crucial in keeping global petroleum prices in check, as supply remains historically constrained due to the effective closure of the Straight of Hormuz. Typically, such a sharper-than-expected drop in inventories would cause oil futures to rise.

Today, however, that is not the case and oil’s pain is travel stocks’ gain, with US airlines and cruise lines surging higher on Wednesday. Delta Air Lines, United Airlines, American Airlines, Southwest Airlines, and JetBlue were all up by at least 6%, while Carnival and Norwegian were up about 7%.

Royal Caribbean pared earlier losses from Mexico’s rejection of a large planned water park, but was still down about 1%.

Luke Kawa

GameStop boosts eBay stake to 6.55% after e-commerce platform rejected its $55.5 billion offer

GameStop has only had to spend around $10 million to gain economic exposure to about 29.1 million shares of eBay.

Helena Cheng5h

Micron jumps on looming Samsung strike

Micron shares are climbing early Wednesday, breaking a sharp multiday semiconductor pullback. The rally comes amid the potential for a critical supply-side disruption at one of its largest global competitors, Samsung Electronics, as well as building investor enthusiasm ahead of Nvidia’s highly anticipated earnings report.

As demand for AI compute accelerates, Micron is increasingly viewed as a top-tier beneficiary due to its role in the critical high-bandwidth memory (HBM) market. The operational catalyst sparking Micron’s rally is a massive looming labor dispute in South Korea. According to Reuters, roughly 48,000 Samsung workers are set to begin an 18-day strike Thursday after negotiations broke down.

As global HBM production is effectively controlled by Micron, Samsung Electronics, and SK Hynix, any manufacturing hiccup at Samsung shifts pricing leverage to Micron. This backdrop comes as South Korea’s broader chip ecosystem is benefiting from the global infrastructure boom, pushing the country to the seventh-largest stock market in the world.

Micron has been expanding its own AI memory footprint. In March, the company completed its acquisition of PSMC’s Tongluo P5 site, a strategic integration designed to scale its domestic HBM production capacity and meet accelerating hyperscaler demand.

Luke Kawa

Semiconductors surge as yield spike abates, Nvidia earnings await

Oh, and executives spent all of Tuesday talking up the strength of demand for AI infrastructure.

Luke Kawa

What Wall Street’s looking for from Nvidia’s Q1 results

Further upside to its $1 trillion revenue guidance, more customer success, and shareholder returns.

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