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Thursday, February 27

Noteworthy macro moves today: Gold -1.1%. Copper +1.8%. US Dollar Index +0.4%. Noteworthy US mega-cap moves today: Amazon.com Inc (AMZN) +1.5%. 

Recent economic data from the United States indicates a significant rise in initial jobless claims, which rose by 22,000 to reach 242,000 for the week ending February 21. This figure is notably above market expectations and reflects potential weaknesses in the labor market after an extended period of tight conditions. Additionally, durable goods orders showed unexpected growth of 3.1% month-over-month for January following previous declines.

In Europe, President Trump's announcement regarding impending tariffs on imports from the European Union has created uncertainty across markets. He indicated that these could include a substantial levy on automobiles set at around 25%. The threat has contributed to downward pressure on European equity indices while bolstering demand for safe-haven assets like the US Dollar.

The Eurozone's consumer confidence index rose slightly but remains negative overall as concerns about inflation persist amid mixed signals regarding economic recovery prospects within member states such as France and Italy where unemployment rates are climbing sharply alongside declining industrial sales figures.

VanEck Semiconductor ETF (SMH) [+1.0%]
The VanEck Semiconductor ETF (SMH) has seen a price increase of 1.0% since Wednesday. President Trump's announcement of a 25% tariff on imports from the European Union, Canada, and Mexico has raised concerns about potential trade tensions affecting the semiconductor sector. Nvidia Corp reported strong fourth-quarter earnings, with significant revenue growth driven by data center demand, which may bolster sentiment toward semiconductor stocks. Additionally, top contributors to SMH's performance included Nvidia, Broadcom Inc., Micron Technology, Synopsys Inc., and Applied Materials, all of which posted positive returns. Nvidia's revenue reached $39.3 billion, primarily from data center sales, while Synopsys exceeded expectations with strong earnings and reaffirmed guidance for the upcoming quarter. Social media discussions have noted a lack of accumulation in SMH since July 2024 and suggested it may be entering a distribution phase.

SPDR Gold Shares (GLD) [-1.1%]
Gold prices have declined today, ending an eight-week winning streak, driven by a stronger US dollar and rising Treasury yields. This downturn coincides with market uncertainties following President Trump's announcement of new tariffs on European imports, which has shifted attention toward safe-haven assets like gold amid fears of escalating trade tensions. Upcoming U.S. inflation data is anticipated to influence interest rate expectations, further affecting gold's attractiveness. The US 2Y Treasury Bond has also decreased slightly, reflecting broader market sentiment that may be influencing SPDR Gold Shares (GLD), which has moved down by 1.1%. The slight decline in Treasury yields often correlates with movements in gold prices, as investors may adjust their focus between these assets.

EBAY | -9.3% | -2.9B
eBay Inc | Broadline Retail
eBay Inc. reported its fourth-quarter results on February 26, 2025, with adjusted earnings per share (EPS) of 1.25, surpassing the consensus estimate of 1.20. Revenue reached 2.58 billion, slightly above expectations of 2.57 billion. The Gross Merchandise Volume (GMV) for Q4 was 19.3 billion, reflecting a 4% increase year-over-year. Despite these positive metrics, eBay's first-quarter revenue guidance of 2.52 billion to 2.56 billion fell short of analyst expectations of 2.59 billion, leading to a significant decline in stock price, which dropped approximately 9% in after-hours trading. Social media discussions highlighted the mixed sentiment surrounding the earnings report, noting that while Q4 results were strong, concerns about the Q1 outlook contributed to a decline in eBay's stock price following the announcement.

NVDA | +2.0% | +67.5B
NVIDIA Corp | Semiconductors
NVIDIA Corp reported fourth-quarter earnings that exceeded Wall Street forecasts, with revenue reaching $39.3 billion, a substantial increase year-over-year. Data center revenue surged significantly to $35.6 billion, accounting for over 90% of total revenue. Earnings per share came in at $0.89, surpassing the expected $0.84. For the first quarter, NVIDIA projects revenue of approximately $43 billion, slightly above estimates. CEO Jensen Huang noted a significant ramp-up in production of the Blackwell AI supercomputers, which generated $11 billion in sales during the quarter. Despite this strong performance, shares exhibited modest fluctuations post-earnings. Social media discussions highlighted the record quarterly revenue and the extraordinary demand for Blackwell products, while analysts raised their price targets for the stock, reflecting confidence in NVIDIA's growth trajectory.

SNOW | +12.7% | +8.0B
Snowflake Inc. | Internet Services & Infrastructure
Snowflake Inc. reported strong fourth-quarter results, with adjusted earnings per share of 0.30, exceeding the consensus estimate of 0.17 by a significant margin. Revenue for the quarter reached 986.8 million, surpassing expectations of 955.9 million and reflecting a year-over-year increase of 27%. Product revenue was reported at 943.3 million, marking a 28% growth compared to the previous year. The company also announced an expanded partnership with Microsoft to integrate OpenAI's models into its Snowflake Cortex AI service. Guidance for first-quarter product revenue is set between 955 million and 960 million, while fiscal year 2026 product revenue is projected at 4.28 billion, indicating a 24% year-over-year increase. Following these announcements, shares rose approximately 12.5% in after-hours trading, with hedge funds noted as significant buyers ahead of the earnings report.

CRM | -3.7% | -10.6B
Salesforce Inc | Application Software
Salesforce Inc. reported its fourth-quarter results on February 26, 2025, revealing adjusted earnings per share of 2.78, exceeding the consensus estimate of 2.61. Revenue for the quarter was 9.99 billion, falling short of expectations of 10.04 billion, despite a year-over-year increase of 7.6%. The company guided for first-quarter adjusted EPS between 2.53 and 2.55, below the consensus of 2.62, and projected revenue of 9.71 billion to 9.76 billion against an estimate of 9.91 billion. For fiscal year 2026, Salesforce anticipates adjusted EPS of 11.09 to 11.17 and revenue expectations of 40.5 billion to 40.9 billion, both below consensus estimates. Following these announcements, shares declined significantly in after-hours trading, with reports indicating a drop of over 10% due to weaker-than-expected guidance and revenue figures.

NTNX | +14.2% | +2.7B
Nutanix Inc | Application Software
Nutanix Inc. reported its second-quarter fiscal 2025 financial results, achieving revenue of 654.7 million, surpassing the consensus estimate of 641.9 million. The adjusted EPS was 0.56, exceeding expectations of 0.47. The company provided optimistic guidance for the third quarter, projecting revenues between 620 million and 630 million, above the consensus of 594.39 million. Analysts have raised their price targets for Nutanix, with Needham increasing it to 92, JP Morgan to 90, Northland to 97, Oppenheimer to 100, and Barclays to 94. Following the earnings release, Nutanix saw a notable increase in share price, reflecting positive sentiment across social media platforms where users expressed enthusiasm regarding the company's strong quarterly performance and ongoing momentum.

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