GME
AAL
CRM
The Nasdaq Composite surged by 0.59% on Tuesday, crossing the 17,000 mark for the first time. This rise was driven by a significant leap in Nvidia, which jumped more than 6% and reached a new record high. The S&P 500 also edged up by 0.02%. In contrast, the Dow Jones Industrial Average fell by 0.55%, weighed down by declines in Merck and other health-related stocks.
GameStop's Rally Continues
GameStop's (NYSE: GME) shares soared by more than 25% on Tuesday after the company revealed it raised nearly $1 billion from selling 45 million common shares.
The stock has more than doubled in value this month, fueled by a post from "Roaring Kitty," the individual behind the 2021 short squeeze. Although the sale price of the shares wasn't disclosed, the transaction was described as an "at-the-market" offering.
Salesforce Earnings on the Horizon
Salesforce (NYSE: CRM) is set to report its fiscal Q1 earnings on Wednesday, with a focus on updates regarding its Data Cloud division.
This segment is expected to benefit from growing interest in artificial intelligence. Goldman Sachs analysts predict strong demand for Salesforce's AI-enhanced products. Data Cloud's fourth-quarter annual recurring revenue nearly reached $400 million, marking a 90% increase from the previous year. However, Salesforce faces challenges from broader economic uncertainty and spending slowdowns among small and medium-sized businesses.
Premarket Movers:
| Nvidia (NASDAQ:NVDA) | Stock rose 0.4% |
| American Airlines (NASDAQ:AAL) | Stock sank 8.8% |
| Robinhood (NASDAQ:HOOD) | Stock rose 2.1% |
| Marathon Oil (NYSE:MRO) | Stock rose 7.4% |
| ConocoPhillips (NYSE:COP) | Stock fell 3.7% |
| Salesforce (NYSE:CRM) | Stock fell 0.5% |
| Chewy (NYSE:CHWY) | Stock rose 5% |
| CAVA Group (NYSE:CAVA) | Stock fell 3.4% |
American Airlines Cuts Outlook
American Airlines (NASDAQ:AAL) announced a reduction in its second-quarter outlook, predicting a drop in unit revenues by up to 6% compared to last year.
The airline also lowered its adjusted earnings estimate to a range of $1 to $1.15 per share, down from the previous range of $1.15 to $1.45.
This adjustment comes as American Airlines continues to lag behind competitors Delta and United in financial performance.
Additionally, the company is set to part ways with its chief commercial officer, Vasu Raja, who will leave his position next month after being on leave.
Crude Oil Prices Climb
Crude oil prices continued their upward trend on Wednesday, with U.S. crude futures rising by 0.5% to $80.20 per barrel and Brent climbing by 0.4% to $84.25 per barrel. Both benchmarks gained over 1% on Tuesday.
The rise in prices is driven by expectations of increased demand during the U.S. summer travel season and an upcoming OPEC+ meeting where current output cuts are likely to be extended. Analysts anticipate a 2 million barrel draw in overall inventories, signaling growing demand.
