Market Update: Companies Making Headlines
Before the market opened, a few companies caught significant attention. Nvidia saw a slight increase of nearly 1% after reports emerged that it received approval from the Chinese government to sell its H200 chips there. Additionally, the company is gearing up to introduce a version of its Groq AI chip in China.
Micron Technology experienced a rise of 2.1% ahead of its anticipated earnings report for the fiscal second quarter, set to be released after the bell on Wednesday.
Macy’s stock jumped by 8% following stronger-than-expected results for the fourth quarter. The retailer reported earnings of $1.67 per share, with total sales reaching $7.64 billion. Analysts had predicted earnings of $1.53 per share and revenues of $7.62 billion, so this was a notable surprise.
In the payments technology sector, Block’s stock rose over 2% after two price hikes. Rothschild & Co. Redburn upgraded its rating for the company from sell to hold for the first time in five years, while also raising its recommendation from hold to buy, citing Block’s low price-to-earnings ratio as a factor.
On the other hand, CF Industries saw its stock drop nearly 4% after Mizuho downgraded it from neutral to underperform, even as it slightly raised its price target from $95 to $100.
Constellation Brands saw a 2.5% rise in its stock price after Citi upgraded its rating from Neutral to Buy, pointing out that although valuations are historically low, sales trends are improving.
Lululemon’s shares declined about 1% despite surpassing TheStreet’s fiscal fourth-quarter expectations. The company’s projections for full-year 2026 revenue and profits came in lower than anticipated. Specifically, Lululemon expects revenues between $11.35 billion and $11.5 billion, which is under the $11.52 billion analysts were hoping for. The earnings forecast also didn’t meet expectations, with estimates ranging from $12.10 to $12.30 per share, compared to a consensus estimate of $12.58.
Knight Swift Transportation’s stocks increased by 3% after UBS upgraded its rating to buy. This upgrade reflects a growing industry awareness of reduced supply, leading to a rise in truckload prices.
Lastly, SL Green Realty, the largest commercial office landlord in Manhattan, saw its stock rise by 2.7% after Deutsche Bank Research upgraded it from hold to buy. Analyst Peter Abramowitz shared in a note that strong asset sales and refinancing are likely to act as positive catalysts for the stock, which is currently down over 42% from its recent peak.
Docusign shares rose 2.1% in after-hours trading, having surpassed fourth-quarter expectations while providing optimistic guidance for the first quarter and upcoming fiscal year. The company forecasts first-quarter revenue between $822 million and $826 million, exceeding the anticipated $813 million forecasted by analysts.
