Wall Street ended higher on Friday after a choppy trading session, with Dell Technologies dipping and other tech stocks climbing after a meeting between the U.S. President Donald Trump and Ukrainian counterpart Volodymyr Zelenskiy ended in disaster.
Market Snapshot
The Dow Jones Industrial Average rose 601.41 points, or 1.39%, to 43,840.91, the S&P 500 rose 92.93 points, or 1.59%, to 5,954.50 and the Nasdaq Composite rose 302.86 points, or 1.63%, to 18,847.28.
Market Movers
Nvidia rose 3.9% on Friday. The stock dropped 8.5% on Thursday, even as the leading maker of artificial-intelligence chips reported better-than-expected quarterly earnings but narrower profit margins. The drop Thursday was the stock's largest post-earnings daily percentage decrease since Nov. 6, 2018, according to Dow Jones Market Data.
Dell Technologies posted better-than-expected fourth-quarter earnings. "Our prospects for AI are strong, as we extend AI from the largest cloud-service providers, into the enterprise at-scale, and out to the edge with the PC," said Chief Operating Officer Jeff Clarke in a statement. Dell shares fell 4.7% after the company said it expects first-quarter adjusted earnings of $1.65 a share on revenue of $22.5 billion to $23.5 billion, versus analysts' calls for adjusted profit of $1.78 on revenue of $23.6 billion, according to FactSet.
Tesla was up 3.9% at $293.04. The electric-vehicle maker declined 3% on Thursday and closed at $281.95, the stock's lowest close since Election Day in November, when it finished at $251.44. Tesla stock has finished lower for six consecutive trading days, down 22% over the period. Sales of the company's EVs have been falling across the globe, as CEO Elon Musk's politics rankle Tesla's core buyers -- politically left-leaning consumers looking to go green.
Autodesk said it planned to cut about 9% of the workforce as the design-software company said it was "reallocating internal resources" toward "critical areas" of business, such as artificial intelligence. Autodesk made the announcement in conjunction with the release of fourth-quarter earnings that saw adjusted profit top analysts' forecast on a 12% increase in revenue to $1.64 billion. The stock dropped 2.9%.
HP Inc. declined 6.9%. The maker of personal computers and printers posted fiscal first-quarter adjusted earnings of 74 cents a share, in line with estimates, as revenue rose 2% to $13.5 billion and topped expectations of $13.39 billion. HP anticipates adjusted second-quarter earnings of 80 cents a share at the midpoint of its forecast range, compared with predictions of 86 cents. For the fiscal year, the company called for adjusted earnings of about $3.60 a share versus expectations of $3.57. HP also said it would be l aying off up to 2,000 more employees as part of a continuing cost-cutting plan.
SoundHound AI gained 18% after the maker of voice-based artificial-intelligence technology raised its revenue outlook for the current fiscal year following a narrower-than-expected fourth-quarter loss and revenue that topped analysts' expectations. SoundHound said it expects fiscal-year revenue of $157 million to $177 million, compared with previous guidance for $155 million to $175 million.
Fourth-quarter earnings at Duolingo rose from a year earlier and the language-learning app issued upbeat guidance for its first quarter and fiscal year. Bookings were $271.6 million, up 42% from a year earlier. Daily active users were 40.5 million, an increase of 51%, while monthly active users rose 32% to 116.7 million. The stock, however, plummeted 17%.
NetApp tumbled 16% after the enterprise data storage company reported fiscal third-quarter revenue that missed analysts' expectations and adjusted earnings and revenue guidance for the current fourth quarter that also came up short.
Monster Beverage rose 5.3% after the maker of energy drinks reported better-than-expected fourth-quarter revenue. Adjusted earnings in the period of 38 cents a share missed analysts' forecasts by 2 cents.
Data-analytics company Elastic jumped 13% after posting better-than-expected fiscal third-quarter adjusted earnings and revenue.
Redfin's fourth-quarter loss was wider than expected, and shares of the online brokerage and real-estate services company fell 12.7%.
Acadia Healthcare fell 26% after the behavioral-healthcare provider issued an outlook for the current fiscal year that missed analysts' estimates. The company said it expects fiscal-year adjusted earnings per share of $2.50 to $2.80, below forecasts of $3.35.
Walgreens Boots Alliance fell 4.7% after analysts at Deutsche Bank downgraded the stock to Sell from Hold, and reduced their price target to $9 from $11. The analysts said the pharmacy chain was on course for an "incredibly complicated" buyout and breakup if reports panned out.
Market News
Trump, Zelenskiy Fail to Reach Deal After White House Clash
The US and Ukraine failed to sign a critical minerals agreement after a Friday meeting between Donald Trump and Volodymyr Zelenskiy devolved into a fiery exchange, fracturing relations between the two countries.
Trump took umbrage with Zelenskiy’s doubts that the US president’s efforts to broker a deal with Russia would lead to lasting peace. The Ukrainian leader departed the White House following the public spat, and a planned signing ceremony and press conference were canceled.
US Stagflation Fears Rise With Latest Economic Data
A string of recent US data showing resurgent inflation and slowing activity is stoking fears the world’s biggest economy could be heading toward a period of stagflation.
Consumer spending fell by the most in nearly four years in January after a robust holiday season. Americans are growing more pessimistic about the economic outlook, and companies are warning of higher prices in the wake of the Trump administration’s aggressive tariff policy.
Economists caution against making too much of one month’s data, especially when skewed by factors like freezing weather. But should the risk of stagflation — or when an economy faces both tepid growth and elevated inflation — turn to reality over the coming months, the Federal Reserve would face a tough choice between supporting the labor market or finishing its years-long inflation fight.