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Dow, S&P 500, Nasdaq Hit Record Highs; Why Did Nvidia Get Hit After Hours?

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Stocks rallied Thursday, sending the major market indexes to record highs with Nike (NKE) leading the Dow Jones industrial average. But Nvidia (NVDA) and Yelp (YELP) tumbled after hours.

The Dow, Nasdaq composite and S&P 500 each rose 0.6%. Small caps fared even better as the Russell 2000 surged 1.4%. Volume was lighter vs. Wednesday, according to early figures.

After the close, Nvidia was down 3% despite a solid Q4 earnings and sales beat. Its EPS of 99 cents trounced views for 83 cents; revenue of $2.17 billion topped consensus estimates for $2.11 billion. But it guided for in-line sales in the current quarter and hinted at lower gross profit margin.

Shares closed the regular session down 2% in light trade. The stock had climbed past a 120.03 cup-base buy point intraday Tuesday before easing the past two sessions.

Yelp sank 8% in extended trading after its Q4 EPS ex items beat views by a penny and revenue slightly outpaced forecasts. But shares sank on its disappointing Q1 and 2017 revenue outlook. The stock closed the regular session with a fractional gain to close 4% below a 43.46 cup-base buy point.

During the regular session, steel makers, apparel companies and discount retailers outperformed in the stock market today. But gold miners, paper and chip stocks underperformed. West Texas intermediate crude prices rose more than 1% to $53.53 a barrel; gold futures dipped nearly 1% to $1,232 an ounce.

Nike led blue chips with a 2.7% jump to retake its 200-day line in fast trade for its fourth consecutive advance. The athletic shoe powerhouse in December reported quarterly results that beat forecasts, while rival Under Armour (UAA) gapped down and plunged 23% on Jan. 31 after its earnings and sales missed.

Tesla (TSLA) cruised 2.7% higher in speedy turnover to its best levels in 16 months. Shares are near the top of a buy range from a 258.56 cup-with-handle entry. The electric car maker is reportedly planning to start test production of its Model 3 entry-level sedan on Feb. 20, according to Reuters, well ahead of its July mass-production target.

Paycom Software (PAYC) gapped up and surged 13%, regaining its 50-day and 200-day lines and breaking out past the 51.07 buy point of a choppy consolidation. The human resources software provider reported higher-than-expected Q4 results and forward guidance.

But Twitter (TWTR) dived 12% as it gapped down below its 50- and 200-day lines in massive turnover. The social media site reported Q4 earnings per share that beat, but revenue that sharply missed, views. The number of monthly active users also missed analyst forecasts. Year-over-year advertising revenue fell.

In economic news, first-time jobless claims dipped 5% in the latest week to 234,000, below economist forecasts for an increase to 250,000.