March 05, 2025 05:41 PM EST
Advancers
- Moderna (MRNA) shares popped 15.9%, notching Wednesday’s top performance in the S&P 500. The surge in the stock came after a top executive said the biotech firm anticipates a 2027 release of its personalized cancer vaccine, which it is developing in collaboration with Merck (MRK). In addition, reports that Moderna’s CEO purchased $5 million in common stock underlined internal confidence in the company’s upcoming performance.
- Shares of military shipbuilder Huntington Ingalls Industries (HII) steamed 12.3% higher after Trump discussed investments in the shipbuilding industry in his address before a joint session of Congress on Tuesday evening. Shares of other defense contractors also posted gains following the president’s comments.
- Celanese (CE) initiated cash tender offers aimed at purchasing it outstanding senior notes due in 2026 and 2027, and shares of the chemical and specialty materials company jumped 12.7%. Earlier this week, Celanese announced a collaboration with European building materials company Baumit to provide binders for sustainable paint and plaster solutions by applying carbon capture and utilization (CCU) technology.
Decliners
- Although CrowdStrike Holdings (CRWD) reported better-than-expected sales and profits for its fiscal fourth quarter, the cybersecurity company issued underwhelming full-year guidance, pointing to lingering pressure related to last summer’s global IT outage. CrowdStrike shares dropped 6.3%, suffering the steepest daily decline of any S&P 500 constituent. However, several analysts noted that the firm maintains a strong position in the cybersecurity space.
Valero gas pumping stations in Austin, Texas. Brandon Bell / Getty Images
- Crude oil futures prices moved lower following this week’s tariff developments and as the Organization of the Petroleum Exporting Countries, along with several allied nations, confirmed plans to increase production levels starting in April. The price drop dragged down numerous oil and gas stocks. Shares of Marathon Petroleum (MPC) and Valero Energy (VLO) fell 5.3% and 4.6%, respectively.
- Shares of medical device manufacturer ResMed (RMD) fell 3.3% after analysts at Stifel trimmed their price target on the stock. The analyst team noted that conversations with physicians raised concerns about the outlook for ResMed’s devices for treating sleep disorders, which could see an impact from the increasing prescription of GLP-1 weight-loss medications.
March 05, 2025 05:22 PM EST
Crude oil futures tumbled to trade near their lowest levels in years on Wednesday as jitters about U.S. tariffs and a surprising production hike from OPEC+ rattled commodities markets.
West Texas Intermediate crude futures, the U.S. oil benchmark, fell as much as 4% on Wednesday to trade at $65.22, near its lowest price since late 2021. Shares of U.S. oil companies, including ConocoPhillips (COP) and ExxonMobil (XOM), followed crude prices lower.
Oil markets have been rattled in recent days by President Trump’s imposition yesterday of a 25% tariff on Canadian and Mexican goods. Trump also doubled tariffs on Chinese imports to 20%.
The first time Trump threatened to hit Canadian and Mexican imports with tariffs, at the end of January, oil prices rose amid concerns the tariffs would limit supply. This time around, market participants are concerned about the toll that the levies and retaliatory measures could take on the global economy.
The tariffs are widely expected to slightly speed up U.S. inflation and slow economic growth in the near term. They’re expected to take an even bigger toll on the Canadian and Mexican economies, potentially plunging two sizable oil markets into recession.
Oil prices have been driven down from Monday’s OPEC+ decision to increase oil production starting in April. The gradual increases will unwind the production cuts the group of major oil producers committed to in November 2023.
Lower oil and gas prices were a major focus for Trump on the campaign trail last year. He promised America would “drill, baby, drill” to reduce transportation costs and, ultimately, temper inflation. Oil prices have fallen steadily under Trump, with WTI down about 15% since his inauguration, and fuel prices have declined marginally over the past month.
March 05, 2025 04:47 PM EST
Palantir (PLTR) shares surged Wednesday as William Blair analysts suggested the company could be well positioned to support efforts to trim government spending directed by the Trump administration’s Department of Government Efficiency.
The analysts told clients Wednesday that a recent executive order requiring federal agencies to create a centralized payment tracking system practically “seems earmarked for Palantir.” They added that they expect Palantir’s artificial intelligence offerings to be “platforms of choice.”
Shares of Palantir jumped nearly 7% to $90.13 Wednesday, leaving the stock up 19% for the year so far. They’ve more than tripled in value over the past 12 months, despite a recent selloff on worries that an expected pullback in spending could hurt the government contractor.
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William Blair analysts upgraded the stock to “market perform” from “underperform,” and said it could return to $125 over the next two years “as the market reverts to risk-on mode.”
Just earlier this week, Wedbush analysts called Palantir one of their “top names to own in 2025″ and reiterated an $120 price target. The company could be in a “sweet spot to benefit from a tidal wave of federal spending on AI,” the analysts said, even as other government contractors face spending cuts. “We believe Palantir could actually gain more deals and IT budget dollars across various government agencies,” Wedbush added.
March 05, 2025 04:25 PM EST
The Federal Reserve’s Beige Book’ report on the economy was full of the word “uncertainty” and similar terms, as businesses braced for the impact of President Donald Trump’s widening trade war.
The report, released Wednesday, showed the economy overall was still growing “slightly.” Still, business and civic leaders were “uncertain,” “nervous,” and “worried” about the impact of Trump’s policies, especially the tariffs against Canada, Mexico, and China he imposed Tuesday. Trump’s plans for mass deportations of immigrants were another source of concern, as several business leaders said their employees were skipping work out of fear of deportation.
The beige book was the latest in a series of reports and surveys to show growing anxiety about how tariffs and other Trump policies will affect the economy. Experts say the tariffs could push up the cost of living and slow the economy, and the uncertainty itself could discourage investment and hiring. “Contacts in most Districts expected potential tariffs on inputs would lead them to raise prices, with isolated reports of firms raising prices preemptively,” the report said. In the Dallas district, manufacturers were especially nervous. ‘Respondents said the back-and-forth tariff talk has been stressful and that the heightened uncertainty is highly disruptive,” the report said. In Boston, “Prices increased moderately on average as wholesale food prices spiked, and contacts expressed concerns that tariffs would contribute to more intense pricing pressures moving forward.” In Philadelphia, ” Employment continued to grow somewhat, although firms were more reluctant to hire amid economic uncertainty.”
Overall, the report painted a picture of an economy in a precarious position amid Trump’s trade war and his moves to rapidly cut federal employees and programs.
“Such changes have created considerable uncertainty for businesses and consumers and pushed up inflation expectations,” Anthony Fonash, an economist at Moody’s Analytics, wrote in a commentary. “Our baseline calls for slower but still solid growth in the coming months. Yet, the economy appears increasingly fragile, especially since asset markets—with their frothy valuations—seem quite vulnerable to a sizable correction.”
March 05, 2025 03:56 PM EST
AeroVironment (AVAV) shares fell Wednesday, a day after the maker of military drones posted a surprising loss and weak revenue guidance on a drop in sales to Ukraine and the impact of the recent wildfires in Southern California.
The company reported a third-quarter fiscal 2025 net loss of $0.06 per share, while analysts surveyed by Visible Alpha were looking for a profit of $0.34 per share. Revenue slid 10% year-over-year to $167.6 million, also short of estimates.2
AeroVironment said the revenue decline was mainly because of “decreased international sales of our UxS family of systems, most significantly sales to Ukraine.” In addition, the company explained that January’s high winds, fires, and resulting blackouts and shutdowns in Southern California negatively impacted results.
AeroVironment noted that it was lowering its full-year outlook “given short-term challenges.” The firm now sees fiscal 2025 revenue in the range of $780 million to $795 million, while the Visible Alpha forecast was for $813.5 million.
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Shares of AeroVironment were down about 4% in late trading after falling as much as 22% in the opening minutes of the session to around $110, their lowest level since October 2023.
March 05, 2025 03:19 PM EST
Elon Musk may be a drag on Tesla’s (TSLA) business—at home and abroad.
Registrations of Tesla vehicles reportedly plummeted 76% in Germany last month, evidence of a consumer backlash against the electric vehicle maker in protest of CEO Musk’s political efforts. Former Canadian finance minister Chrystia Freeland, who is campaigning to take over from outgoing Prime Minister Justin Trudeau, has floated the idea of imposing a 100% tariff on Tesla vehicles in retaliation for Trump’s 25% tariff on Canadian goods.
And in the U.S., Musk’s close ties to President Trump’s administration have alienated some eco-minded Tesla owners and prospective buyers. Some Teslas have been vandalized in the wake of Trump’s re-election.
Elon Musk is recognized during President Donald Trump’s address to a joint session of Congress in the House Chamber of the U.S. Capitol on Tuesday. Tom Williams / CQ-Roll Call, Inc / Getty Images)
The degree to which Musk may be hurting Tesla’s brand is disputed by investors and analysts. Some are more concerned about his focus on government affairs at the possible expense of time spent on Tesla. Still, recent polling and market data indicate the possibility of a backlash.
Goldman Sachs analysts in a note Wednesday lowered their forecast for first-quarter sales, citing the rollout of a new Model Y and weaker-than-expected demand. The analysts said that surveys from data provider HundredX showed consumers’ trust in the Tesla brand and intent to buy Tesla vehicles have “declined meaningfully” since the summer.
Musk was a vocal supporter of the far-right Alternative for Germany during the country’s federal elections last month, appearing at an AfD rally in January. More than 70% of German respondents expressed an unfavorable opinion of Musk in a January YouGov poll, with about the same amount saying his efforts to wield political influence were unacceptable.
Tesla’s German sales slump may reflect a growing international backlash to Musk. European Union registrations fell 50% in January, while total battery electric vehicle registrations increased by 34%. Shipments in China were also down nearly 50% in February, according to Bloomberg reporting of data from China’s Passenger Car Association.
The used Tesla market is becoming increasingly tough for sellers in the US. According to data from CarGurus, the average used Tesla price has fallen 4% in the last 90 days, more than twice the average for all cars.
Tesla shares were gaining ground Wednesday afternoon amid hopes that tariffs on carmakers could be reduced. The stock has slumped nearly a third of its value since the start of the year, nearly erasing all of its post-election surge.
March 05, 2025 01:49 PM EST
Abercrombie & Fitch (ANF) shares sank Wednesday after the apparel retailer’s current-quarter profit and full-year sales forecasts disappointed investors.
The company, which owns Hollister in addition to its namesake brand, sees first-quarter earnings per share (EPS) between $1.25 and $1.45, well below Visible Alpha consensus of $2.01, in part due to higher inventory levels.
“We have a bit more carryover inventory than last year, which we’ve been working through to sell through as we’ve seen these colder temperatures here in January and February,” CFO Robert Ball said, according to a transcript of the earnings call provided by AlphaSense.
Abercrombie & Fitch also is forecasting fiscal 2025 sales to rise between 3% and 5%, below Visible Alpha expectations of 5.65% growth.
The retailer posted fourth-quarter EPS of $3.57 on net sales that rose 9% year-over-year to $1.58 billion. Both beat analysts’ estimates.
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Abercrombie & Fitch shares were down 12% recently, trading near their lowest level since late 2023. The stock has lost about 40% of its value in the past 12 months.
March 05, 2025 12:07 PM EST
Shares of General Motors (GM), Ford Motor (F), and Chrysler parent Stellantis (STLA) advanced Wednesday as Commerce Secretary Howard Lutnick said President Trump was going to announce changes today to tariffs he slapped on Canada and Mexico this week.
President Trump also floated the idea of giving tax breaks to buyers of U.S.-manufactured cars Tuesday night in his address to a joint session of Congress.
Lutnick told Bloomberg Television that Trump may be giving some tariff relief to certian sectors, saying, “It could well be autos, it could be others as well.”
The Commerce Secretary noted that the administration will consider lowering duties on companies that comply with the regulations of the USMCA trade agreement negotiated with Canada and Mexico in Trump’s first term. Lutnick added that all of the “Big Three” automakers are compliant with that deal.
Also helping lift carmaker shares was a comment Trump made in last night’s address to Congress, when he said, “I also want to make interest payments on car loans tax deductible—but only if the car is made in America.”
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Even with today’s gains for the “Big Three” ranging from about 4% to 7%, only General Motors shares are trading in positive territory for the past year.
March 05, 2025 11:07 AM EST
CrowdStrike (CRWD) shares plunged Wednesday after the company issued an earnings forecast that fell short of analysts’ expectations.
The cybersecurity company said after Tuesday’s closing bel it anticipates adjusted net income of $851.2 million to $883 million or $3.33 to $3.45 per share in fiscal 2026, well below the analyst consensus of 1.1 billion, or $4.23 per share, compiled by Visible Alpha.
In the fourth quarter, CrowdStrike saw revenue grow 25% year-over-year to $1.06 billion, just above analysts’ estimates. Adjusted earnings of $260.9 million, or $1.03 per share, rose from $236.2 million, or 95 cents per share, a year earlier and beat expectations.
“As businesses of all sizes rapidly adopt AI, stopping the breach necessitates cybersecurity’s AI-native platform,” CEO George Kurtz said in a release, adding, “we are seeing strong momentum in our Next-Gen SIEM, Cloud Security, and Identity Protection businesses.”
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CrowdStrike shares were down 8% in recent trading, leading S&P 500 decliners. The stock is still up 5% in 2025, after hitting a record high last month.
March 05, 2025 10:42 AM EST
Campbell’s (CPB) shares fell Wednesday morning after the snack and soup maker posted a decline in its quarterly results and cut its full-year outlook on the back of soft demand for its snack foods.
The maker of snacks such as Goldfish crackers and Kettle Brand chips said its 2025 second-quarter adjusted earnings per share (EPS) fell 8% to $0.74 as net sales dropped 2% on an organic basis to $2.69 billion.
The company, which dropped Soup from its name late last year, also said organic net sales for its full year would be in the range of “down 2% to flat.” It said full-year adjusted EPS would be between $2.95 and $3.05, or down around 4% to down 1% versus the adjusted EPS of $3.08 in fiscal 2024.
Campbell’s had previously projected 2025 organic net sales would be in the range of 0% to 2% and adjusted EPS would be between $3.12 and $3.22— or between 1% and 4% higher.
“Given the softness in some of our snacking categories, the anticipated sequential top-line improvement did not materialize during the quarter, and we now have a more muted second half expectation,” Chief Executive Officer (CEO) Mick Beekhuizen said, explaining the update to the full-year guidance. Beekhuizen took over as CEO from Mark Clouse, who left at the end of January to become president of the National Football League’s Washington Commanders.
Campbell’s shares were down 3.5% in recent trading, and have fallen nearly 10% over the past 12 months.
March 05, 2025 09:11 AM EST
The U.S. stock market got a big boost after the election of Donald Trump amid optimism about the new administration’s pro-business approach. Major stock indexes, which all surged to record highs in recent months, have given back those post-election gains.
The S&P 500 closed Tuesday at its lowest level since Election Day on Nov. 5. The benchmark index is down 6% from its all-time closing high, which was set just two weeks ago. The Nasdaq Composite closed below its Nov. 5 level on Monday, while the Dow Jones Industrial average is up less than 1% from its pre-election level.
Heading into Wednesday’s session, all three indexes are in negative territory for 2025.
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March 05, 2025 08:15 AM EST
Futures tied to the Dow Jones Industrial Average were up 0.2%.
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S&P 500 futures also rose 0.2%.
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Nasdaq 100 futures were up 0.4%.
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