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- Internal | May 31st, 2024
Internal | May 31st, 2024
| Market | Day | Month | Year |
|---|---|---|---|
| Dow | ▼0.86% | ▲0.27% | ▲16.67% |
| S&P | ▼0.60% | ▲3.20% | ▲25.68% |
| Nasdaq | ▼1.08% | ▲6.28% | ▲30.48% |
| Bitcoin | ▼1.09% | ▲11.48% | ▲148.24% |
| 10-Year | ▲0.50% | ▲0.44% | ▼5.97% |
GOOD MORNING
Here's everything you need to know today: Shares of Trump Media & Technology Group, the parent company of Truth Social, took a nosedive in after-hours trading following the guilty verdict in former President Trump's hush money trial. The stock plunged nearly 7%, showcasing the fragility of a company tied to the unpredictable nature of its namesake.
Costco continues to defy retail gravity, delivering a stellar third-quarter earnings report. The warehouse giant exceeded analyst expectations on both revenue and earnings, driven by robust same-store sales growth and surging e-commerce activity. Costco's performance solidifies its position as a retail powerhouse and a beacon of consumer confidence.
Salesforce's stock plunged 16% in after-hours trading following its first revenue miss in nearly two decades. Despite adjusted earnings per share slightly beating expectations, its revenue of $9.13 billion fell short, leading to lower-than-anticipated guidance for the upcoming quarter. This setback highlights potential vulnerabilities in Salesforce's competitive positioning within the cloud software market.raphic challenges and a prolonged property sector crisis.
Let’s dive into more detail below.
POLITICS
Trump Media Stock DJT Plunges 7% After Guilty Verdict Announced on All 34 Counts
Trump Media, already facing financial struggles, must navigate a new wave of uncertainty with the former president now awaiting sentencing
BREAKING NEWS
In a move that surprised no one, shares of Trump Media & Technology Group, the parent company of Truth Social, took a nosedive in after-hours trading following the guilty verdict in former President Trump's hush money trial.
The stock, known for its rollercoaster ride fueled by retail investors chasing quick profits, plunged nearly 7% on the news at the time of writing, demonstrating the fragility of a company tethered to the unpredictable nature of its namesake.
WHAT HAPPENED
After a New York jury found former President Donald Trump guilty on all 34 counts of falsifying business records to conceal hush money payments made during his 2016 presidential campaign, these payments were made to adult film star Stormy Daniels, who alleged an affair with Trump, a claim he vehemently denies. The guilty verdict sent ripples through the market, impacting Trump Media & Technology Group, the company behind the Truth Social platform.
This after-hours tumble raises questions about Trump Media's future and ability to attract investors as legal troubles plague its figurehead.
Former President Trump plans to have a press conference on Friday at 11 a.m. Eastern at Trump Tower.
EARNINGS
Costco Exceeds Expectations with $58.52 Billion in Q3 Sales, Highlighting Resilient Membership and Strong E-commerce
Investors were impressed by Costco's ability to sustain growth, manage inflation, and expand digital footprint without cannibalizing in-store sales
BREAKING NEWS
Costco continues defying retail gravity, delivering a stellar third-quarter earnings report showcasing its membership model's resilience and value proposition in a challenging economic environment.
The warehouse giant exceeded analyst expectations on both revenue and earnings, fueled by robust same-store sales growth, surging e-commerce activity, and the unwavering loyalty of its massive customer base.
This strong performance and a record-high stock price solidify Costco's position as a retail powerhouse and a beacon of consumer confidence.
WHAT HAPPENED
Costco handily surpassed Wall Street's expectations, reporting net sales of $58.52 billion, compared to an anticipated $57.98 billion. The company's adjusted earnings per share reached $3.78, exceeding the predicted $3.70. Key drivers of this success included a 6.5% surge in same-store sales (excluding fuel), with international markets leading the charge, and a remarkable 20.7% year-over-year jump in e-commerce sales. Membership fees, a crucial indicator of customer engagement and a pillar of Costco's financial stability surged by 7.6% year-over-year, further underscoring the company's ability to retain and attract loyal customers.
CRM
Salesforce Shares Plummet 16% After First Revenue Miss Since 2006, Impacting Market Sentiment
Salesforce CFO expects deal compression and project delays to continue impacting professional services business
BREAKING NEWS
Salesforce's stock plunged 16% in after-hours trading following its first revenue miss in nearly two decades. The company's quarterly revenue of $9.13 billion fell short of Wall Street's expectations, marking a significant setback for the cloud software giant and leading to lower-than-anticipated guidance for the upcoming quarter.
WHAT HAPPENED
Salesforce reported adjusted earnings per share of $2.44, slightly above the expected $2.38, but its revenue of $9.13 billion missed the projected $9.17 billion—this marked Salesforce's first revenue shortfall since 2006. The company attributed the miss to increased budget scrutiny and longer deal cycles, which impacted bookings. Despite growth in all product areas, revenue from the Professional Services and Other category declined by 9%. Net income surged to $1.53 billion, or $1.56 per share, from $199 million, or 20 cents per share, a year earlier. Salesforce raised its earnings forecast for the fiscal year 2025, expecting adjusted earnings of $9.86 to $9.94 per share, but maintained its revenue guidance at $37.7 billion to $38 billion. Additionally, the company began offering AI-powered features, such as Einstein Copilot and Slack's conversation summaries, during the quarter.
YESTERDAY | Here’s what you missed |
1. Palantir lands $480M DoD contract for AI system
Palantir has secured a $480 million contract from the Department of Defense for its Maven Smart System prototype, extending through 2029. This contract highlights the growing significance of AI in defense.
2. Hackers claim Ticketmaster data breach, offer info of 560 million customers for sale
The hacking group ShinyHunters claims to have breached Ticketmaster's systems, stealing sensitive information about 560 million customers and offering it for sale.
3. Boeing promises big changes as the plane maker looks to rebuild trust and quality
Boeing has announced sweeping changes to its manufacturing operations in response to a mandate from federal regulators following a midair blowout on a 737 Max jet in January. The company aims to rebuild trust and improve quality.
4. Disney investors relieved as Nelson Peltz exits
Disney's CEO has successfully fended off activist investor Nelson Peltz, who is reportedly gone for good. Despite this, Disney still needs to prove itself to Wall Street.
5. Dell beats first-quarter revenue estimates as AI boom bolster server demand
Dell has exceeded first-quarter revenue estimates, driven by increased demand for high-performance computing and large-scale data centers supporting the growing adoption of generative AI. The company recently unveiled AI-enabled PCs and announced a new server supporting Nvidia's latest chips, set to be available in the second half of 2024.
6. Price cut wars: Walgreens follows Target and Walmart, slashing prices on 1,500 items
Walgreens, with nearly 9,000 locations across the US, has been reducing prices since October, joining Target and Walmart in the price cut wars by slashing prices on 1,500 items.
7. Nordstrom misses Wall Street's earnings expectations, as off-price chain Rack lifts sales
Despite missing Wall Street's earnings expectations, Nordstrom has maintained its full-year forecast, driven by sales growth in its off-price chain, Nordstrom Rack.
8. Senate Democrats accuse oil companies of collusion with OPEC, demand DOJ investigation
Nearly two dozen Democratic senators, led by Majority Leader Chuck Schumer, have written a letter to the Justice Department urging an investigation into alleged collusion between the oil industry and OPEC.
9. U.S. Accuses Hyundai and Two Other Companies of Using Child Labor
The Labor Department has filed a lawsuit against Hyundai, one of its suppliers, and a staffing company for allegedly employing a 13-year-old on an auto body parts assembly line in Alabama.
10. TikTok preparing a US copy of the app’s core algorithm, sources say
TikTok is developing a clone of its recommendation algorithm specifically for its 170 million U.S. users. This version is intended to operate independently of its Chinese parent company, making it more acceptable to American lawmakers who have considered banning the app, according to sources with direct knowledge of the efforts.
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