Top 10 things to watch on Friday, May 9th
1. Shares were poised to open higher this morning following the announcement of a US-UK trade agreement, motivated by yesterday’s rally. However, that momentum seemed to wane towards the day’s end.
2. President Donald Trump mentioned in a social media post that 80% tariffs on China “seems right.” Yet, he has delegated the decision to Treasury Secretary Scott Bescent, who is engaged in trade conversations with Chinese officials over the weekend.
3. Affirmation reported inline revenues and better-than-expected total commodity volumes. Despite this, the stock is dipping after the midpoint of their revenue guidance missed a consensus estimate. Susquehanna, however, upgraded its rating on the stock to positive.
4. Texas Roadhouse reported disappointing revenue figures, though same-store sales for the first quarter were slightly better than anticipated. Sales growth accelerated in April and May, pushing the same-store sales to two quarters above estimates. Still, commodity inflation fears have increased, putting pressure on margins.
5. Lyft exceeded expectations in total bookings and has raised its buyback program from $500 million to $750 million. They plan to buy back $500 million worth of shares over the next year, with Goldman upgrading the stock to a buy rating. It’s expected to rise by 11% this morning.
6. Expedia has revised its full-year bookings and revenue outlook downward, receiving a downgrade to an undervalued sell rating due to weaker travel demand, according to Piper Sandler.
7. Cantor Fitzgerald acknowledged misjudgments in a note on Marvell Technology, admitting that custom chip manufacturers were mistaken to assume they would lose partnerships with Microsoft regarding custom AI accelerators.
8. DraftKings has lowered its full-year outlook, but Jefferies believes it’s already priced into the stock. The March Madness Tournament reportedly posed a challenge for the sportsbook. Shares gained over 4% this morning.
9. The Trade Desk bounced back with a strong first quarter, exceeding adjusted EBITDA predictions for the second quarter. Stocks surged by 15% this morning.
10. Pinterest has reported better-than-expected revenues and first-quarter outlook. Executives credited AI for enhancing user experience and increasing the company’s value as a partner for advertisers.
