FINWIRES · TerminalLIVE
FINWIRES

Sector Update: Tech Stocks Fall Late Afternoon

By

Tech stocks were lower late Wednesday afternoon, with the State Street Technology Select Sector SPDR ETF (XLK) down 0.5% and the State Street SPDR S&P Semiconductor ETF (XSD) falling 2.4%.

The Philadelphia Semiconductor index lost 1.5%.

In corporate news, Zscaler (ZS) shares tumbled 31% after the cloud security company provided a fiscal Q4 revenue outlook below market estimates, even though it reported better-than-expected results for the prior three-month period.

Meta Platforms (META) plans to sell Meta AI chatbot consumer subscriptions for the first time, as the company looks to offset its billions of dollars of investments in AI, Bloomberg reported. Meta shares rose 3.4%.

Super Micro Computer (SMCI) shares added 2.6% after the firm said Verda has selected its Nvidia (NVDA) GPU-accelerated, rack-scale systems for its AI cloud infrastructure in Europe.

Taiwan Semiconductor Manufacturing (TSM) Chief Executive C.C. Wei told employees they will receive a more than 30% increase in profit-sharing payouts on average this year, driven by strong earnings growth fueled by AI demand, Bloomberg reported. Taiwan Semiconductor shares gained 3%.

Related Articles

Sectors

Sector Update: Healthcare Stocks Advance Late Afternoon

Healthcare stocks rose late Wednesday afternoon with the NYSE Healthcare Index gaining 0.4% and the State Street Health Care Select Sector SPDR ETF (XLV) increasing 0.3%.The iShares Biotechnology ETF (IBB) added 0.5%.In corporate news, BioNTech's (BNTX) cancer-drug pipeline is showing stronger early results and is approaching several important clinical milestones, improving confidence in the company's long-term outlook, UBS Securities said. BioNTech shares rose 1.4%.Corcept Therapeutics (CORT) shares jumped 9.7% after the company said it will resubmit its new drug application to the US Food and Drug Administration in the coming weeks for relacorilant to treat Cushing's syndrome.Boston Scientific (BSX) shares slumped 12% after CEO Mike Mahoney said this year has been "a bit more of a challenge" than anticipated.Guardant Health (GH) shares gained 5.6% after the company said its Shield blood test has been included in the American Cancer Society's updated Colorectal Cancer Screening guidelines.

$BNTX$BSX$CORT$GH
Sectors

Sector Update: Consumer Stocks Rise Late Afternoon

Consumer stocks were higher late Wednesday afternoon, with the State Street Consumer Staples Select Sector SPDR ETF (XLP) rising 1.5% and the State Street Consumer Discretionary Select Sector SPDR ETF (XLY) adding 1.7%.Redbook US same-store sales rose by 9% from a year earlier in the week ended May 23 after an 8.1% year-over-year increase in the previous week. "Demand for a wide variety of summer, home and garden, and seasonal apparel products was the main focus for most consumers," Redbook said.In corporate news, Lululemon Athletica (LULU) said Wednesday that it has settled its dispute with company founder Chip Wilson. Wilson, who owns an 8.7% stake in the company, sent a letter in April to shareholders questioning the appointment of Heidi O'Neill as chief executive. Lululemon shares gained 3.9%.Tesla (TSLA) and SpaceX (SPCX) may eventually merge after SpaceX's initial public offering in a move that would consolidate Elon Musk's control across his companies, according to early SpaceX investor Peter Diamandis, Bloomberg reported, citing an interview. Tesla shares rose 1.1%.Abercrombie & Fitch's (ANF) fiscal Q1 earnings topped Wall Street's projections amid record sales for the apparel retailer. Its shares climbed past 13%.Bath & Body Works' (BBWI) fiscal Q1 results exceeded market estimates, while the personal care and home fragrance retailer said its chief financial officer plans to step down. Its shares jumped nearly 11%.Manchester United (MANU) on Wednesday raised its full-year top-line outlook as the UK soccer club posted double-digit growth in fiscal Q3 revenue year over year, helping it swing to earnings. Manchester United shares surged over 13%.

$ANF$BBWI$LULU$MANU$TSLA
Sectors

Sector Update: Energy

Energy stocks declined late Wednesday afternoon, with the NYSE Energy Sector Index falling 1.4% and the State Street Energy Select Sector SPDR ETF (XLE) decreasing 1.1%.The Philadelphia Oil Service Sector Index slumped 2.9%, and the Dow Jones US Utilities Index shed 0.6%.Front-month West Texas Intermediate crude oil fell 5.3% to $88.94 a barrel, and the global benchmark Brent crude contract dropped 5.1% to $94.52 a barrel. Henry Hub natural gas futures rose 5% to $3.04 per 1 million BTU.In corporate news, Kosmos Energy (KOS) shares slumped nearly 6% after Mizuho downgraded the company to underperform from neutral and adjusted its price target to $3 from $2.

$KOS