The midday stock market reversed its morning gains and traded lower slightly.
The S&P 500 is down 0.4%, and the tech-heavy Nasdaq Composite lost 0.7%. The Dow Jones Industrial Average and the Russell 2000 Index slipped 0.3%.
Trending stocks:
The semiconductor sector is sliding midday, with Nvidia down 1.5%, AMD losing 2%, and Intel dropping 3%.
Earnings reports are driving some big moves: Zoom jumped 12% after posting strong Q2 results and an upbeat Q3 outlook, while Snowflake and Urban Outfitters tumbled despite beating earnings expectations.
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S&P 500 big stock movers today
Five S&P 500 stocks making big midday moves are:
- Franklin Resources Inc (BEN) +3%
- Vistra Corp (VST) +2.8%
- Nordson Corp (NDSN) +2.7%
- Host Hotels & Resorts Inc (HST) +2.3%
- CenterPoint Energy Inc (CNP) +2.3%
The worst-performing five S&P 500 stocks with the largest midday drop are:
- Moderna Inc (MRNA) -4.3%
- Intel Corp (INTC) -3.1%
- Walgreens Boots Alliance Inc (WBA) -2.6%
- Bristol-Myers Squibb Co (BMY) -2.5%
- Enphase Energy Inc (ENPH) -2.5%
Stocks also worth noting with significant moves include:
- Zoom Video (ZM) +12.8%
- Snowflake (SNOW) -12.6%
- Urban Outfitters (URBN) -9.3%
- Nvidia (NVDA) -1.5%
- Tesla (TSLA) -2.6%
Zoom surges on rosy earnings
Zoom stock jumped 13% after the video communication company posted upbeat second-quarter results and raised its full-year revenue outlook.
The company reported its fiscal Q2 earnings on August 21. Non-GAAP earnings per share diluted came in at $1.39, topping the analysts’ forecast of $1.21. Revenue of $1.16 billion was up 2% and beat the consensus estimate of $1.15 billion. Zoom also raised its full-year outlook.
Zoom said acquiring new customers helped its revenue growth.
Related: Zoom CEO is developing a strange solution to excessive work meetings
By the end of July 31, the company had approximately 191,600 enterprise customers.
Nearly 4,000 customers each contributed over $100,000 in revenue over the past 12 months. The number of high-revenue clients represents an increase of about 7.1% compared to a year ago.
Zoom’s CFO, Kelly Steckelberg, will resign from her position on October 31.
Snowflake plunges despite earnings beat
Snowflake stock tumbled 13% even after the company beat quarterly expectations and raised its full-year revenue guidance.
Snowflake reported fiscal second-quarter revenue of $868.8 million, representing 29% year-over-year growth and surpassing the analysts’ estimate of $851.6 million.
Adjusted earnings of 18 cents per share came higher than analysts’ 16 cents forecast but down from the 22 cents a year ago.
Related: Analysts rethink Amazon stock price targets after earnings
The company expects a 26% growth in its product revenue for the current quarter.
Morgan Stanley analysts say the Q2 results were "solid," but the decelerating growth trajectory "likely fails to address existing bear cases around rising competitive intensity."
The company’s product revenue growth for Q1 was 34%.
Urban Outfitters plummets after mixed financial results
Urban Outfitters stock lost nearly 10% after the company reported an earnings beat and a decrease in same-store sales.
Related: Stock Market Today: Stocks pull back from record test with Fed in focus
The company operates brands including Anthropologie, Free People, FP Movement, Urban Outfitters, and Nuuly.
For the three months ended July 31, 2024, it posted revenue of $1.35 billion and earnings per diluted share of $1.24, both surpassed analysts’ forecasts.
The company also posted a 9.3% decline in same-store sales for the Urban Outfitters brand, compared to analysts’ 8.3% decline estimate.
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Wells Fargo analyst Ike Boruchow lowered Urban’s price target to $40 from $48 and kept an equal weight rating, citing concerns over the mid-July sales slowdown and higher-than-expected inventory levels.
“Second half of the year numbers are coming down, and this read-through likely takes softlines retail down on Thursday,” Wells said.
Related: Veteran fund manager sees world of pain coming for stocks
