- Stocks remain positive, but the Nasdaq composite fades as investors weigh jobless claims levels unseen since last summer. Duolingo (DUOL) experiences a significant drop in the stock market following the company’s earnings report with underwhelming current-quarter and full-year sales guidance.
- Chip designer Arm has been a dazzling presence in the public market since its return in September 2023. The company’s focus on the automotive segment signals a strategic shift in response to the rise of smart cars and the consequent demand for high-performing chips.
- The Dow Jones Industrial Average leads with a 0.4% increase, while the S&P 500 adds 0.3%. The Nasdaq eases to a 0.1% gain, and the small-cap Russell 2000 adds 0.5%.
Stock market trends and shifts, including the fall of Duolingo and the rise of Arm, highlight the impact of jobless claims and the increasing demand for high-performing chips in the era of smart cars.
Epam Systems Tumbles in the Stock Market
Epam Systems (EPAM) experiences a significant drop, becoming the biggest loser on the S&P 500 in the stock market today, after it lowered previous guidance. Arm Holdings (ARM) manages to trim losses after the company gave a light fiscal 2025 revenue estimate.
Job Market Slows as Jobless Claims Rise
The Labor Department’s weekly initial jobless claims for the week ended May 5 rose to 231,000 vs. the 212,000 expected, indicating a slowing job market. This tally is the highest number since August. Meanwhile, the benchmark 10-year Treasury yield holds steady at 4.49%.
Engineering Stock Epam Slides
Epam skids more than 24% despite reporting higher-than-expected first-quarter adjusted earnings and revenue. Investors are put off by the software engineering company’s updated guidance for full-year revenue and profit, which is lower than its previous projection.
Arm and Duolingo Stocks Retreat After Guidance
Arm stock retreats 3.4% after the company topped March-quarter profit and sales estimates but gave full fiscal year sales guidance that missed analysts’ projections. Duolingo stock gaps down 17% in heavy volume after the language learning company topped views on first-quarter earnings and revenue. However, its second-quarter sales and expected bookings guidance fell short of expectations, triggering a sell signal.
AppLovin and Trade Desk Rally
Trade Desk (TTD) rallies 2.9% after it beat first quarter profit and sales forecasts. AppLovin (APP) gaps up more than 18% after the company reported better-than-expected first-quarter profit and sales and gave a second-quarter revenue forecast well above Wall Street estimates.
Conclusion
The stock market today shows a mix of gains and losses, with companies like Duolingo and Epam experiencing significant drops, while Arm and Trade Desk rally. The rise in jobless claims indicates a slowing job market, a factor investors need to consider in their decision-making.
