Shopify jumped 19.7 per cent after the company, which helps businesses sell on the internet, said it made more in revenue last quarter than expected. Analysts also said the company’s forecast for revenue in the current quarter suggests the strong trends are continuing.
Arista Networks was one of the stronger forces lifting the S&P 500 and leaped 18 per cent after the networking company delivered a bigger profit for the latest quarter than expected. Its forecast for revenue in the current quarter also topped forecasts.
They helped offset a 19.3 per cent slump for Super Micro Computer, which gave back some of the huge gains the server maker has made recently. Super Micro came into the day with a nearly 88 per cent gain for its stock so far this year, but it reported weaker profit and revenue for the latest quarter than analysts expected. It also gave a forecast for profit in the current quarter that fell short of what Wall Street had penciled in.
Disney dropped 2.4 per cent after its profit beat forecasts but its revenue fell short. Analysts said investors may have been looking for Disney to boost its profit forecast by a bigger amount.
The NFL also announced that it had entered into a nonbinding agreement with Disney’s ESPN, which will give the sports broadcaster the NFL Network, NFL Fantasy and the rights to distribute the RedZone channel. The NFL will get a 10 per cent stake in ESPN in the proposed deal.
Chip company Advanced Micro Devices fell 6 per cent after its profit for the latest quarter only matched analysts’ expectations. Analysts said the company’s financial forecasts for upcoming results also looked solid, but that may not have been enough for investors after its stock had already soared 44.3 per cent for the year so far coming into the day.
In the bond market, Treasury yields held relatively steady.
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The yield on the 10-year Treasury edged up to 4.24 per cent from 4.22 per cent late Tuesday. It’s still well below where it was last week, before Friday’s much weaker-than-expected report on the US job market ignited worries that Trump’s tariffs are pushing employers to hold back on hiring.
That report has traders on Wall Street betting heavily that the Federal Reserve will need to cut interest rates at its next meeting in September. Such cuts can give the economy and investments prices a boost, but they also can push inflation higher.
