Market Today: Mixed Results for Major Indices, Aehr Test Systems Beats Q1 Estimates, Beverage ...
As markets concluded on 10-05-2023, the S&P 500 declined by 0.13%. The Dow Jones Industrial Average saw a downturn, finishing 0.03% lower. Meanwhile, the Nasdaq Composite fell by 0.12%. The 10-year Treasury yield rose 0.11% to 4.719.
Aehr Test Systems (NASDAQ:AEHR) reported Q1 Non-GAAP EPS of $0.18, beating estimates by $0.02. Revenue of $20.62M (+93.3% Y/Y) also beat by $1.37M. The company reiterated its 2024 outlook, expecting total revenue to be at least $100 million, representing growth of over 50% year over year, and GAAP net income of at least $28 million, representing earnings growth of greater than 90% year over year.
Beverage stocks traded weak on Thursday with a myriad factors believed to be impacting sentiment. The biggest factor is probably the start of earnings season next week, with PepsiCo (NASDAQ:PEP) heading into the earnings conference on October 10. PepsiCo (NASDAQ:PEP) showed a 4.49% decline at 2:55 p.m, while Coca-Cola (NYSE:KO) was down 4.05%.
Juniper Networks (NYSE:JNPR) announced on Thursday that it is letting go roughly 440 employees around the globe as part of a broader restructuring plan. As a result of the layoffs, Juniper will incur roughly $59M in costs associated with the workforce reduction, including $40M in cash charges.
AMD (NASDAQ:AMD) took a hit from Baird as the investment firm lowered its data center revenue estimate for next year. The firm pushed its original outlook for meaningful artificial intelligence market share and ramp timing for AMD's upcoming MI300 GPU due to lack of design wins outside of supercomputing applications so far and in the absence of a well-established software ecosystem.
Jeffrey Gundlach of DoubleLine Capital raised concerns on Thursday about the rapid de-inversion of the yield curve between the U.S. 10-Year Treasury yield (US10Y) and the U.S. 2-Year Treasury yield (US2Y), which he says should make investors "buckle up" as recession odds could be changing.
Amazon (NASDAQ:AMZN) has cut some employees amongst its communications staff, with the workforce reduction happening across divisions and countries. More than 5% of the communications division at Amazon Studios, Prime Video and Music is being impacted.
Amazon (NASDAQ:AMZN) is reducing the amount its Prime members need to spend on its Amazon Fresh grocery shopping service to get free shipping to $100 from $150. A leaked memo obtained by Business Insider said the change went into effect today.
Wireless carriers didnt want to put their contracts with Google (NASDAQ:GOOG) (NASDAQ:GOOGL) at risk and refused to allow Samsung Electronics (SSNLF) to load one of its devices with a unique app search capability, a former Samsung investment adviser said at the antitrust trial against the U.S. tech giant on Thursday.
This article first appeared on GuruFocus.
