Stock market today: Dow futures slide again as rates fears prey on nerves

Stock market today: Dow futures slide again as rates fears prey on nerves

U.S. stocks are heading for further losses on Thursday on lingering concerns about higher long-term interest rates and a Salesforce (RCMP) massive sales put a damper on investor morale.

Dow Jones Industrial Average Futures (YM=F) fell 0.9%, after losing more than 400 points to leader of Wednesday’s stock market fall. S&P 500 Futures (ES=F) fell 0.4%, while contracts on the technology-heavy Nasdaq 100 (NQ=F) were down about 0.3%.

Stocks lost strength amid renewed gloom over the likelihood of rate cuts, fueled by data showing less cooling in inflation than the Federal Reserve wants. At the same time, we hope that Nvidia (NVDA) blockbuster earnings would spur broader stock market rally were disappointed.

This rate anxiety pushed US bond yields this week to their highest levels since early May, lifting the 10-year Treasury yield (^TNX) goes back above 4.5%. Although the benchmark yield fell on Thursday, it remained above the key level, around 4.6%.

Salesforce’s results raised further concerns about the likely losers of the AI โ€‹โ€‹boom. The software publisher shares slipped 15% in pre-market after saying sales growth would stagnate at the slowest level in its history.

Attention now turns to Thursday’s data releases, with investors on the lookout for new signs of the surprising resilience of the US economy. obstruct the matter for the Fed to reduce borrowing costs. A second reading of first quarter GDP and weekly unemployment claims is underway.

Learn more: How does the labor market affect inflation?

A flurry of retail profits before the bell provided further clues about consumer resilience and economic health. Kohl (KSS) stocks crashed after department store chain went bankrupt surprise quarterly loss and reduced its annual sales forecast. Meanwhile, Best Buy (BBY) posted a bigger decrease in comparable sales compared to forecasts while Americans are choosy about non-essential spending.

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  • Terrible quarter for Best Buy

    Yahoo Finance senior reporter Brooke DiPalma has all the numbers you need on Best Buy (BBY) quarter here.

    I would just like to add that this Best Buy quarter really stinks, once again.

    Sales declines are piling up for the company, which makes me wonder if there are structural problems the company can’t overcome. Commercial pressure has persisted for about two years. I also wonder if there is a need for a fresh look at senior management after the upcoming holiday shopping season.

    Difficult sales quarters for Best Buy continue.Difficult sales quarters for Best Buy continue.

    Difficult sales quarters for Best Buy continue. (Best Buy)

  • Stock market today: Dow futures slide again as rates fears prey on nerves

    Folo up: soft

    Soft (BLOW) found its way into these live blog pages on Wednesday, and rightly so.

    Shares exploded 27% following a better-than-expected quarter (shares are down slightly in pre-market trading today). The answer surprised me a bit, because the company’s closely monitored active customer metric fell again year over year. In fact, the decline accelerated compared to the decline seen in the previous quarter.

    Nonetheless, the Street swallowed up the company’s margin expansion and its comments about the improving demand environment.

    We sat down with Chewy CEO Sumit Singh in a lengthy interview on Yahoo Finance Live (see full below), where he echoed this improving demand backdrop.

    I found it interesting that the company was fully invested in opening veterinary clinics. It now has four in operation, opening in the first quarter, and four more in progress by the end of the year.

    The company is well behind Mars, which operates thousands of veterinarians (it has been a consolidator in the field, buying up family practices). But there is a window of opportunity here for Chewy to offer a better care environment tied to the services and products it sells online.

    Also worth watching: The company has started testing a paid membership program.

  • Stock market today: Dow futures slide again as rates fears prey on nerves

    Trend Monitoring: PC Demand Cycle

    HP Inc. (HPQ) shares are up 3% premarket after a a quarter better than expected last night.

    Of all I talked about with HP CEO Enrique Lores (full interview below) following the results, it was his call for businesses to upgrade their PCs before Windows 10 drops support in October 2025 that left an impression. It appears that the race to replace computers is on before then.

    The market introduction of HP’s first generation of AI PCs this month will likely put even more energy into this upgrade cycle.

    “We continue to believe that HPQ remains well positioned to benefit from the PC upscaling cycle, which is only expected to accelerate in the second half and into FY25,” the D analyst wrote this morning. ‘EvercoreISI, Amit Daryanani, in a customer note.

  • Stock market today: Dow futures slide again as rates fears prey on nerves

    Salesforce crashes

    Selling power (RCMP) the shares are hammered before marketing to the tune of 16%.

    The sale is justified.

    Salesforce missed its key performance obligations, growing 10% versus estimates of 11%. The conference call was filled with concerns about the macroeconomic environment, which is delaying the signing of agreements.

    Second quarter guidance, below consensus, reflects these concerns (hopefully for management’s sake).

    โ€œEven though the first quarter was consistently weaker for software, the scale of the failure may suggest more idiosyncratic issues (seat exposure, declining sales, competition) that could continue to weigh on the business in the second quarter, especially with FY25 revenue now looking aggressive. (implying an acceleration in the second half compared to the second quarter),” Citi analyst Tyler Radke said in a client note. “Valuation is undemanding at 20x EPS, 18x enterprise value/ free cash flow (on FY25 estimates), but with slowing growth, lack of risk-free estimates and more active M&A, we are comfortable waiting for improvement in growth or more data evidence Cloud/GenAI momentum/monetization.โ€

    Overall, a surprising quarter from Salesforce that wasn’t telegraphed. The stock is likely to remain in the penalty box until signs of a more stable macroeconomic backdrop emerge.

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