Tuesday, February 11, 2025
Market indexes were mixed today, after seeing all the majors in the red before the opening bell. The Dow closed up +123 points, +0.28%, while the S&P 500 squeaked by +2 points. The Nasdaq finished the session down -70 points, while the small-cap Russell 2000 closed down -12.
Fed Chair Addresses the Senate Today, House Tomorrow
Fed Chair Jerome Powell’s testimony before the Senate Banking Committee earlier today went without surprise. He said once again that the U.S. economy was “strong overall,” and again asserted that the Fed does not need “to be in a hurry to adjust [its] stance.” Current policy, as parroted by New York Fed President John Williams, is “well positioned.”
This is the first of two days for Powell on Capitol Hill; tomorrow he appears before the House Financial Services Committee, basically to say the same thing. However, new CPI data may have something to do with Powell’s outlook, or Congress’ questioning, or both. The Fed last cut rates 25 basis points back in December; it skipped its chance in January and is currently expected to forego another move at its meeting next month.
Big Afternoon for Earnings Reports: DASH, LYFT, GILD & More
DoorDash DASH saw shares initially fall -4.5% directly following Q4 results this afternoon which were mixed compared to Zacks consensus estimates, but have zoomed up +7% since. Earnings of 33 cents per share missed expectations by a penny, while revenues of $2.87 billion outpaced the $2.83 billion anticipated. Gross Margins and Q4 Orders were both up from estimates, though the company has missed on its bottom line in three of the past five quarters.
Check out the updated Zacks Earnings Calendar here.
Gilead Sciences GILD saw a nice bump from its Biktarvy HIV treatment in the past quarter; the company reported earnings of $1.90 per share versus estimates of $1.67, and a swing to the positive from the year-ago $1.72 per share. Revenues of $7.57 billion were well ahead of the $7.06 billion expected. Guidance for Q1 are up big on both top and bottom lines, and shares in late trading, while demonstrating some volatility, are currently +5%.
Lyft LYFT shares, however, are falling nearly -10% on its Q4 report released after today’s closing bell. Revenues met expectations at $1.55 billion for the quarter, but forward guidance for EBITDA and Gross Bookings. Lyft followed Uber’s earnings reported last week, which have helped hoist shares of Lyft’s rival.
Zillow Z also posted mixed numbers for its Q4 earnings, and its Class C shares are trading down -10% in after-hours. Earnings of 27 cents per share was 2 cents light of expectations, while revenues of $554 million was a solid beat over the Zacks consensus $540.6 million. Residential revenue grew +3% year over year, but a challenging market in Q1 is helping the selloff.
What to Expect from the Stock Market Wednesday
The Consumer Price Index (CPI) is expected to trim down slightly month over month, +0.3% compare with +0.4% a month ago on headline, +0.3% versus +0.3% on core (stripping out volatile food & energy costs). Year-over-year headline CPI, also known as the Inflation Rate, is expected to tick down to +2.8% from +2.9% reported a month ago, and +3.1% from +3.2% on core CPI year over year. Still not where the Fed wants to get us to, but at least things are expected to be moving in the right direction.
Earnings reports due out tomorrow morning include Vertiv VRT and Kinross Gold KGC in the morning, and Cisco Systems CSCO tomorrow afternoon. We’ll also hear from more active members of the Fed tomorrow, and see the new Monthly Federal Deficit for January.
Questions or comments about this article and/or author? Click here>>
Only $1 to See All Zacks' Buys and Sells
We're not kidding.
Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.
See Stocks Now >>Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report
Gilead Sciences, Inc. (GILD) : Free Stock Analysis Report
Kinross Gold Corporation (KGC) : Free Stock Analysis Report
Zillow Group, Inc. (Z) : Free Stock Analysis Report
Lyft, Inc. (LYFT) : Free Stock Analysis Report
Vertiv Holdings Co. (VRT) : Free Stock Analysis Report
DoorDash, Inc. (DASH) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
