Markets
Luke Kawa

US stocks reverse big losses to end higher

US stocks erased deep losses on Friday to end a bad week with a decent gain.

The S&P 500 rallied 0.6%, the Nasdaq 100 gained 0.7%, and the Russell 2000 rose 0.4% on the session, all coming back from a deficit of more than 1%.

Financials were the worst-performing S&P 500 sector ETF; consumer discretionary also finished in the red. Utilities, energy, tech, and industrials paced gains.

Broadcom posted big gains after its strong earnings report and guidance. Walgreens Boots Alliance also jumped after the pharmacy chain agreed to be acquired by Sycamore Partners. And shares of Gap were up nearly 20% after the retailer delivered a huge increase in same-store sales.

In the wake of an earnings miss, Costco had its biggest one-day drop since about one year ago, back when it also reported underwhelming figures.

The woes for airline stocks continued, with Delta Air Lines, United Airlines, and American Airlines all finishing deep in the red.

Concerns that tariffs would raise the cost of Nintendo’s Switch 2 and hurt sales weighed on the stock.

HP Enterprise cratered after the data center equipment maker issued weak guidance.

Potbelly, a rare publicly traded sandwich maker, got carved up after saying same-store sales would shrink in the current quarter.

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SpaceX gets a wave of bullish ratings from Wall Street analysts

SpaceX received more than a dozen positive analyst calls on Tuesday — including from major Wall Street banks — as they initiate coverage on Elon Musk’s space and AI company.

SpaceX went public on June 12 at a $2.2 trillion valuation, the largest debut in history. While the company hasn’t yet posted a profit, it seems to have convinced Wall Street that it will get there and grow its valuation on the way.

Of the at least 17 analysts that gave a rating on Tuesday, all but one gave it a “buy” or “outperform” rating. MoffettNathanson was "neutral."

The ratings come as SpaceX joined the Nasdaq 100 index, a benchmark tech-heavy basket of companies that underpins millions of portfolios. The inclusion adds built-in demand for the stock from index funds and ETFs.

Still, SpaceX fell more than 5% on Tuesday amid a broader sell-off, and is currently effectively flat from its opening price of $150 a share.

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Nike sinks to lowest level since 2014 after warning of “challenged” sales environment in Q4 report

Did Nike do it?

Investors had a mixed reaction after the global sports apparel company reported its fourth quarter earnings on Tuesday after the bell. Shares initially rose 5% as Nike beat out Wall Street expectations amid a hefty tariff refund bonus. However, the stock then sank to its lowest level since August 2014 in postmarket trading.

Here are the Q4 numbers:

  • Revenue of $11.0 billion (estimate: $10.8 billion).

  • Adjusted earnings per share of $0.20 (estimate: $0.12).

Ahead of this report, Nike warned that results would be flattered by a one-time tariff refund (now estimated at roughly $0.52 per share for the bottom line). That gave the company an extra cushion in snapping its streak of seven quarters of year-over-year profit declines.

Over the past year, the company had been punished by tariffs on imported goods, stagnant consumer spending, and increasing competition from other footwear brands like New Balance, Adidas, and Hoka.

Outgoing CFO Matthew Friend deemed it an “increasingly challenging operating environment, where sell-through remains challenged.”

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