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Markets Stay Deflated, Big After-Market Beats for LULU, CRWD, DOCU & More

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Markets stayed depleted throughout this trading day, though all major indexes built back from session lows around the opening bell. Despite very strong labor market numbers from Weekly Jobless Claims and ADP (ADP - Free Report) private-sector payrolls reported, the Dow closed -0.07%, snapping a five-day win streak, the S&P 500 was -0.36%, the Nasdaq lagged all indexes, down 1.01% on the day, while the small-cap Russell 2000 sold off 0.81%.

Perhaps tomorrow morning’s nonfarm payroll figures — should they come in as healthy or more so than this morning’s batch — will provide the uncorking to higher market gains throughout, as this will be further evidence we are experiencing the Great Reopening in real time. Then again, perhaps that’s when we’ll start hearing about inflation fears marring outlooks for companies that otherwise are largely expecting easy year-over-year comps.

To wit, lululemon (LULU - Free Report) posted solid beats on Q1 earnings reported after the closing bell today: $1.16 per share outperformed the 91 cents expected, while revenues of $1.23 billion strode past the $1.12 billion in the Zacks consensus. Guidance was raised for both next quarter and full-year earnings and sales, as the company performs well off easy comps from a year ago, and enjoys its growth strategy in the U.S. (+82%) and International (+125%). Shares are up 3% in the after-market.

Semiconductor major Broadcom (AVGO - Free Report) also topped expectations in its fiscal Q2 report this afternoon: $6.62 per share surpassed the $6.44 estimate on $6.61 billion in revenues, up 15% year over year and above the $6.51 billion projected. Semiconductor solutions grew 20% from a year ago to $4.82 billion. The company, which has not missed on quarterly earnings going all the way back to our records in Q1 2014, are up modestly in late trading. They are +9% year to date, +50% in the past year.

Cybersecurity leader Crowdstrike (CRWD - Free Report) put up better-than-expected Q1 numbers after the market close, as well: 10 cents per share topped the 6 cents expected at the 2 cents per share in the year-ago quarter. Sales of $303.8 million easily slipped beyond $292.2 million, and next-quarter and full-year guidance were both raised. The company’s trailing four-quarter earnings beat was 193%. Shares are flat in the late session; +125% from this point last year.

Docusign (DOCU - Free Report) shares, however, are up 6% in after-market trading on its big quarterly beat on top and bottom lines: 44 cents per share zoomed past the 27 cents expected and 12 cents per share reported a year ago. Revenues of $469 million were also a big beat from the $434.6 million in the Zacks consensus. The company has only posted one earnings miss since its IPO back in 2018, but shares are still down 12.4% year to date.

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