Stocks @ Night delivers a daily recap of market movements and outlooks for investors. On Wednesday, attention was firmly fixed on several key developments poised to influence trading on Thursday.
Tesla’s significant compensation package for Elon Musk is expected to yield voting results soon, potentially impacting investor sentiment surrounding the electric vehicle giant. Tesla shares have surged 50% over the past three months, closing Wednesday at $462, marking a rise of 4% on the day. The stock is now just 5.4% shy of its peak from December 18, 2024, and has realized an impressive 115% increase from its low in early April.
In the transportation sector, the S&P airlines index experienced a notable rise of 6% on Wednesday, making it the highest-performing industry of the day. However, it remains 11.6% below its January peak while reflecting a robust 57% rebound from an April low. Amid the ongoing government shutdown—now the longest in U.S. history—Transportation Secretary Sean Duffy announced a 10% cut in flight capacity at 40 major airports due to air traffic control challenges. Airlines like Southwest, Delta, and United saw significant stock gains, with increases of 6.6%, 5.2%, and 6.5% respectively.
Chip manufacturers also made headlines, with both Lam Research and Micron Technology reaching new all-time highs. Both companies, established in 1984, have benefitted from robust market dynamics, with the VanEck Semiconductor ETF nearing its own high and boasting a 48% increase year-to-date.
Conversely, e.l.f. Beauty faced a turbulent trading day as it missed revenue expectations while exceeding earnings estimates. Following this announcement, the company’s stock plummeted over 21% in after-hours trading, contributing to a 30% decline over the past month.
DoorDash mirrored this troubling trend, as the company missed earnings forecasts, leading to a roughly 9% drop in its stock price, although it had previously gained 42% this year.
In other financial updates, Steve Madden reported lower-than-expected quarterly revenue due to tariffs impacting wholesale profits. Despite the challenges, CEO Edward Rosenfeld expressed optimism, claiming that “the worst is behind us.” The company’s shares rose nearly 14% on the day following the report, signaling a recovery from a significant yearly decline.
Looking forward, Thursday holds promise with anticipated earnings from Ralph Lauren. The company had adjusted its annual revenue forecast earlier based on increased demand but cautioned about potential margin pressures due to tariffs. With the stock currently up 37% year-to-date and having recently hit a 52-week high, market watchers await the earnings report with keen interest.
