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Top Midday Stories: White House Refutes Iran Report of Interim Peace Deal; Zscaler Shares Plunge After Fiscal Q4 Revenue Guidance Misses Estimates

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The Dow Jones Industrial Average was up, while the S&P 500 and Nasdaq Composite were about flat in late-morning trading Wednesday after Iranian state media reported that an unofficial draft of a US-Iran interim peace deal says that maritime traffic through the Strait of Hormuz would return to normal within a month of the agreement being finalized. Later, the White House said the report of an interim peace deal was a "complete fabrication" and "not true."

In company news, Zscaler (ZS) reported fiscal Q3 adjusted earnings late Tuesday of $1.08 per diluted share, up from $0.84 a year earlier and above the FactSet consensus analyst estimate of $1.01. Fiscal Q3 revenue was $850.5 million, up from $678 million a year ago and above the FactSet consensus of $835.6 million. For fiscal Q4, the company said it expects adjusted EPS of $1.08 to $1.09, above the FactSet consensus of $1.03. Fiscal Q4 revenue is expected to be between $875 million and $878 million, below the FactSet consensus of $878.6 million. For full-year 2026, the company said it expects adjusted EPS of $4.10 to $4.11, up from its previous guidance of $3.99 to $4.02 and above the FactSet consensus of $4.01. Full-year revenue is expected to be between $3.329 billion and $3.332 billion, above its previous guidance of $3.31 billion to $3.32 billion and above the FactSet consensus of $3.32 billion. Zscaler shares were down 31.6% around midday.

Boston Scientific (BSX) Chief Executive Mike Mahoney mentioned possible short-term challenges facing the company during a presentation Wednesday at an industry conference. Mahoney said Boston Scientific is "not going to likely grow faster than our peer group in the short term, but as that Denali platform gets launched in our emblem with [subcutaneous implantable cardioverter defibrillator] leadless pacemaker, that will help our growth in our [cardiac rhythm management] business," according to the report. Boston Scientific shares were down 9.8%.

PDD Holdings (PDD) reported Q1 non-GAAP earnings Wednesday of 9.51 Chinese renminbi ($1.38) per diluted American depositary share, down from 11.41 renminbi a year earlier and below the FactSet consensus of 16.56 renminbi. First-quarter revenue was 106.23 billion renminbi, up from 95.67 billion renminbi a year ago but below the FactSet consensus of 109.82 billion renminbi. PDD shares were down 11.0%.

JPMorgan Chase (JPM) CEO Jamie Dimon said Wednesday at a conference that "there might be in the next couple of years a chance to put $10 billion or $20 billion to work buying" another company, according to a transcript. JPMorgan shares were down 3.0%.

Dycom Industries (DY) reported fiscal Q1 adjusted net income Wednesday of $4.42 per diluted share, up from $2.39 a year earlier and above the FactSet consensus of $2.72. Fiscal Q1 contact revenue was $1.96 billion, up from $1.26 billion a year ago and above the FactSet consensus of $1.67 billion. For fiscal 2027, the company said it expects revenue of $7.38 billion to $7.65 billion, up from its previous guidance of $6.85 billion to $7.15 billion and above the FactSet consensus of $7.07 billion. Dycom shares were up 28.1%.

Price: $126.28, Change: $-58.33, Percent Change: -31.60%

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