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S&P Sets New High Ahead of Q4 from COIN, DASH, AMAT & More

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Thursday, February 15th, 2024

Forget Tuesday’s selloff — we’re back, baby! Markets brushed off the dirt from the post-CPI wariness among market participants the other day, and have now swung back into positive territory in the past week of trading. The S&P 500 even closed at a brand new all-time high — 5029 — as it gained +0.58% on the session. The Nasdaq treaded lightest, up only +0.30%, while the blue-chip Dow grew +348 points, +0.91% and the Russell 2000 won the day for the second consecutive time, +2.1%.

The small-cap Russell now leads the way in the past five days of trading, and has pushed its way back into the green year-to-date. Moving up +5.5% off Tuesday afternoon lows, the Russell rides small real estate and energy stocks to victory today. For 2024 thus far, the Russell is +2.4%, the Dow +2.8%, the S&P 6% and the Nasdaq +7.7%. All major indices are well above their October 30 lows of last year.

Coinbase (COIN - Free Report) shares are up over +7% in late trading after crushing Q4 estimates on both top and bottom lines. Earnings of $1.04 per share positively stomped the -$0.09 loss expected in the Zacks consensus, on revenues of $954 million which swept past the $731.9 million anticipated. Operating expenses came down -45% year over year while Trade Volume tipped $154 billion in the quarter. Transaction revenues grew +83% — +79% from the Consumer segment and +161% from Institutional. This marks the fourth-straight earnings beat for the crypto platform.

Applied Materials (AMAT - Free Report) are also having a healthy late session today, +12%, following strong beats on earnings — $2.13 per share versus $1.90 forecast, and swinging to growth from a year ago. Revenues were also very good: $6.71 billion from $6.47 billion expected in the quarter. Further, the high-end of revenue estimates for next quarter is now $6.9 billion from $6.28 billion previously expected in the Zacks consensus. The company has high hopes on its next-generation chip technology.

DoorDash (DASH - Free Report) , on the other hand, badly missed expectations on its bottom line: a loss of -39 cents per share was reported, down more than double the -15 cents anticipated. Heavy stock-based compensation obligations hampered the company’s bottom line, while quarterly sales came in at $2.3 billion, ahead of the $2.24 billion expected and representing +27% growth year over year. The company has now posted a negative earnings surprise in each of the last two quarters. Shares are down -7% in after-market activity.

And DraftKings (DKNG - Free Report) swung to a loss of -10 cents per share from expectations of a gain of +6 cents. Revenues of $1.23 billion in the quarter narrowly outperformed the Zacks consensus. Adjusted EBITDA came in lighter than expected while a +37% gain in new monthly unique players surprised to the upside. Shares had initially dropped -1% on the Q4 news, but have subsequently climbed back into positive territory.

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