PRISM Market Moves on Wednesday: Williams Sonoma Soars on Strong Q4; Nvidia and Tesla Slide
US equities are mixed in Wednesday trading at midday after Tuesday’s rally that saw the S&P post its 17th record close this year. Big tech is trading mostly lower with weak performances from Nvidia ($NVDA) and Tesla ($TSLA). Semis, networking/IT equipment, discounters/dollar stores, drug stores, trucking, solar, and large-cap pharma are also underperforming. It has been a better day for energy, moneycenter banks, investment banks, life insurers, utilities, cruise lines, casual diners, homebuilders, and beverages. Treasuries are weaker, the Dollar index is down (0.1%), Gold is up +0.6%, Bitcoin futures are up +2.0% and WTI crude is up +2.3%.
Notable performers at midday are Williams-Sonoma ($WSM) which has surged +19.9% on strong Q4 earnings with EPS and revenue beat. The company pointed to upside from Pottery Barn and Pottery Barn Kids, and a surprise increase in Williams-Sonoma. It raised the dividend by 26%, and expanded its repurchase capacity to $1 billion. Carnival ($CCL) is up +3.4% after being initiated as a buy at Goldman Sachs, and Texas Roadhouse ($TXRH) has gained +2.8% after being upgraded to outperform from neutral at Baird. Analysts cited standout same-store traffic performance and progress in improving profitability.
The day’s decliners are Dollar Tree ($DLTR) which is down (14.2%) on weaker Q4 earnings. The company highlighted positive traffic trends and margin improvement and also stated it will be closing ~600 Family Dollar stores in H1. Petco ($WOOF) has fallen (6.4%) after announcing a CEO change, which the company said limits details on FY24 guidance. Tesla ($TSLA) has lost (3.4%) after being downgraded to underweight from equal weight at Wells Fargo.
