Midday Trading Highlights: Nvidia’s Charge and Market Movements
Nvidia Faces Setback
Nvidia Corporation saw its stock price drop by 7% following a regulatory announcement regarding its graphic processing unit (GPU) exports. The U.S. government indicated that a $5.5 billion charge would be incurred due to the need for an export license for shipments to countries including China. This development also impacted the shares of Advanced Micro Devices and Micron Technology, which fell by 7% and 1% respectively.
ASML Reports Mixed Results
Shares of ASML Holding N.V., a Dutch semiconductor equipment firm, tumbled 7% as the company reported missing order expectations. CEO Christophe Fouquet expressed concerns over demand uncertainty linked to tariffs from China, suggesting that such factors might lead the company to the lower end of its revenue guidance.
Interactive Brokers’ Earnings Fall Short
Interactive Brokers Group, Inc. saw its stock decline by 9% after reporting first-quarter earnings of $1.88 per share, which did not meet the analysts’ expectation of $1.92 per share. Although the firm’s adjusted revenue of $1.40 billion matched forecasts, it announced a dividend increase along with a stock split, signaling potential for future growth despite current challenges.
United Airlines and J.B. Hunt Performance
United Airlines, Inc. reported an adjusted earnings figure of 91 cents per share, surpassing the expected 76 cents. Despite this positive earnings report, the airline’s revenue of $13.21 billion fell short of the anticipated $13.26 billion. In contrast, J.B. Hunt Transport Services, Inc. experienced an 8% drop in stock price despite outperforming on both revenue and income compared to the previous year.
Mixed Performance Across Sectors
Omnicom Group Inc. stock decreased by 7%, even after the media company exceeded earnings estimates. Travelers Companies, Inc., on the other hand, saw a slight uptick of 1% after announcing adjusted earnings that greatly surpassed analysts’ expectations. Meanwhile, U.S. Bancorp’s stock fell by 2% despite reporting higher-than-expected quarterly results.
Tesla and Hertz Global Make Headlines
Tesla, Inc.’s shares slid by 5% amid reports that potential tariffs could disrupt production plans for their Cybercab and Semi electric trucks in the U.S. Conversely, Hertz Global Holdings, Inc. skyrocketed by 56% after a regulatory filing revealed Pershing Square’s substantial investment in the rental car company.
Advanced Micro Devices’ Warning
Advanced Micro Devices highlighted the impact of new U.S. export restrictions, warning of potential charges around $800 million, leading to its 7% stock decline.