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Alibaba higher as Biden, Xi plan to meet by year's end, Tilray and Levi shares up after earnings

Yahoo Finance’s Emily McCormick reports on the day's trending tickers.

Video Transcript

JARED BLIKRE: And now a quick check of the markets here on the YFi Interactive, where we are seeing the Dow, S&P 500, and the NASDAQ all with maintaining their gains over 1%. Let's take a quick look at the Dow. And you can see hovering at the upper end of its trading range for the day. And we also want to take a look at the bond market, where we're seeing the 10-year T-note yield up four basis points. Fairly big move, and you can see it is now about to settle at the highest place at the highest level in several months.

Also want to take a quick look at the NASDAQ 100 heat map and lots of green and dark green on your screen there. Apple, Amazon, Alphabet all up more than 1%. Tesla, Facebook, Microsoft under 1%, but still contributing as well. Taking a look at the chip sector here, flying high, Nvidia up over 2%, AMD up over 3 and 1/2%. Rounding it out with the sector action, we have materials still in the forefront here. That's in the upper left, up about 1.85%, followed by consumer discretionary, healthcare, and tech. All those sectors are outperforming here. Only utilities to the downside. That is down about 14 basis points.

Well, we want to talk about the markets here. And for that, we're bringing in Yahoo Finance's Emily McCormick. And I know you're looking at a number of tickers that are moving today, including Alibaba. And we were talking in the break, Chinese stocks really on fire today. What's behind the move in Alibaba?

EMILY MCCORMICK: Well, that's right, Jared. Alibaba has been a trending ticker on Yahoo Finance all day today. Those shares still up by more than 8% in afternoon trading. And a big reason for this is because US-China relations appear to be improving, or at least now have a pathway toward improvement, based on some headlines that we got out earlier this morning.

Now, earlier today, we heard that the US and China have both agreed to have President Joe Biden and China's President Xi Jinping meet by the end of the year. Now this meeting would be a virtual one and would be in addition to a call between the two leaders that took place last month, which had been their first correspondence in seven months.

Now the Wall Street Journal also reported in some other news that White House National security advisor Jake Sullivan and senior Chinese foreign policy advisor Yang Jiechi met in Zurich earlier this week as well. So really, all of these headlines are really pointing to hopes that relations between these two countries may be smoothed over in the coming months, that this could translate into less regulatory pressure on some of these Chinese shares listed in the US.

And because of that, we are seeing shares of Alibaba, as well as other Chinese stocks, including Tencent, Nio, and Didi Global, moving to the upside as well, as you can see here on this board. But for Alibaba specifically, big relief rally for this company. We've seen shares of Alibaba down 10% in the past month alone, mostly, again, due to concerns over regulatory risk in China. Guys.

ALEXIS CHRISTOFOROUS: All right, also moving higher today, we've got the cannabis company Tilray out with Q1 results. They came in-- they matched expectations, but I guess that was enough to send the stock higher because it's up by about 3 and 1/2% right now.

EMILY MCCORMICK: Well, that's right, Alexis. And we actually saw Tilray posting weaker than expected quarterly sales this morning. But shares erased or earlier losses now trading sharply higher after management said during the company's earnings call that Tilray was ahead of its original pace to save at least $80 million in cost synergies as part of its merger with Aphria.

Now that deal had closed in May. This is one of those deals and types that we've been seeing really rampant in the cannabis space, both in Canada and in the US. And Tilray shares are really trading higher on optimism around this deal going forward. And that it's ultimately going to help save costs for the company and alleviate some pressure on margins as well.

But taking a look on the flip side and some positive news out from this earnings report this morning as well, Tilray did swing to an adjusted EBITDA profit of $12.7 million for its latest quarter. And that was better than the adjusted EBITDA losses of more than $6 million posted in the same quarter last year. But again, still a little bit light on the net revenue aspect of this report. But Wall Street investors, for now, at least looking through that detail. Guys.

JARED BLIKRE: And Emily, I know you're also watching Levi & Strauss Co. That's after they beat on earnings yesterday. Also raised their guidance. What's behind this report?

EMILY MCCORMICK: Well, that's right, Jared. Another earnings story here for Levi Strauss. Definitely a positive report here. The company working through supply chain challenges and topping consensus estimates. And we saw that net revenue came in at $1 and 1/2 billion for the second-- or for the fiscal third quarter, rather. That was up by 41% over last year and 3% compared to 2019. So the company is back above those pre-pandemic levels in terms of top line results. Europe and the Americas were geographically the strong sales areas, with those sales up 35% and 18% respectively on a quarter over quarter basis.

But as you can see here, there has been some choppiness in Levi Strauss's shares over the past couple of months. We're seeing it definitely moving sharply to the upside today, and we also got some positive commentary from CEO Chip Bergh who wrote in the earnings statement this morning, quote, "These results reflect the strength of the Levi's brand, improving momentum in our direct to consumer business and the scale and agility of our supply chain network where we have executed against macro headwinds exceptionally well." So, again, upbeat commentary here, an upbeat full year outlook as well in terms of profit, and a beat for these third quarter results from Levi Strauss. Guys.

JARED BLIKRE: Yeah, thank you for that report. Yahoo Finance's Emily McCormick.

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