New Chip Exports Could Affect Far More Than Nvidia, AMD
38 minutes ago
Tech losses weighed on the major indexes Thursday, extending yesterday’s sell-off amid worries that tightening restrictions on exports to China could have wide-reaching impacts.
The tech sector was the weakest performed in the S&P 500 as shares of Nvidia (NVDA) dropped over 3% in recent trading, making it one of the leading decliners on the Dow Jones Industrial Average. The stock had tumbled close to 7% Wednesday after the chipmaker said it’s set to take a $5.5 billion charge due to new export curbs on the sale of its H20 chips to China.Â
Shares of Advanced Micro Devices (AMD), which also warned it would likely take a hit from new China export restrictions, slipped 1%. Broadcom (AVGO), Micron Technology (MU), and other semiconductor stocks were lower as well, along with shares of server maker and Nvidia partner Super Micro Computer (SMCI) and several other AI hardware makers.
“Rising AI restrictions are likely to impact other key AI-levered computing, networking and optical stocks (AVGO, AMD, MU, ARM, MRVL, COHR, LITE) and raise concerns around enhanced restrictions in other areas,” Bank of America analysts said following the news from Nvidia.
Like Morgan Stanley analysts, they added Nvidia’s write-down indicates a “low probability of future licenses” to circumvent the new restrictions, and that AI diffusion rules set to take effect in May could further limit sales of American AI hardware to a broader set of countries.Â
Wedbush analysts told clients in a note Thursday, “We expect hardly any tech companies to give guidance over the next month given this Twilight Zone backdrop. While the Nvidia news is concerning it’s not a shock as we are in the middle of a trade war between the US and China and expect more punches thrown by both sides before cooler heads prevail and negotiations in some form can begin to play out over the coming weeks/months.”
–Kara Greenberg
Amex Tops Estimates as Consumers Continued Spending
1 hr 5 min ago
American Express (AXP) on Thursday reported better-than-expected first-quarter results on solid consumer spending.
The credit card giant reported first-quarter earnings per share (EPS) of $3.64 on revenue that rose 7% year-over-year to $16.97 billion. Analysts surveyed by Visible Alpha had expected $3.47 and $16.94 billion, respectively. Net interest income was $4.17 billion, just above the $4.10 billion consensus.
American Express CEO Stephen Squeri said the firm saw first-quarter consumer spending “consistent with and in many cases better than what we saw in 2024.” The company affirmed its full-year outlook of 8% to 10% revenue growth and EPS of $15.00 to $15.50 “subject to the macroeconomic environment.”
Shares of the company were up slightly in early-afternoon trading Thursday, recovering from declines early in the session. They entered the day down about 15% so far this year.
Last week, Bank of America analysts upgraded the stock’s rating to “buy,” saying the firm’s “high-quality customer base” would help it be more resilient in an economic turndown or recession.
–Aaron McDade
UnitedHealth Plunges as Company Slashes Profit Forecast
2 hr 1 min ago
Shares of UnitedHealth Group (UNH) fell sharply Thursday after the healthcare giant’s first-quarter results fell short of analysts’ estimates and it cut its profit forecasts for 2025, amid rising costs associated with its Medicare business.
UnitedHealth reported adjusted earnings per share (EPS) of $7.20 on revenue that rose 10% year-over-year to $109.58 billion. Analysts polled by Visible Alpha had expected $7.25 and $111.46 billion, respectively.
The Eden Prairie, Minn.-based company lowered its 2025 EPS outlook to a range of $24.65 to $25.15 and its adjusted EPS projection to $26 to $26.50. Last quarter, UnitedHealth said it expected to generate full-year EPS of $28.15 to $28.65 and adjusted EPS from $29.50 to $30.00.
UnitedHealth attributed the outlook cuts to “heightened care activity indications” in its Medicare Advantage business, and “unanticipated changes in the profile of Optum Health members impacting planned 2025 reimbursement.”
CEO Andrew Witty said the company “did not perform up to our expectations, and we are aggressively addressing those challenges to position us well for the years ahead.”
UnitedHealth shares were down 23% in recent trading, pushing the Dow Jones Industrial Average sharply lower. Shares of other health insurers including CVS Health (CVS), Humana (HUM), Elevance Health (ELV), and Centene (CNC) were dragged lower Thursday by the cost concerns.
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UnitedHealth shares had entered the day up about 16% since the start of the year, recovering from a February slump following a report that the U.S. Department of Justice was investigating the company’s diagnosing practices.
–Aaron McDade
Eli Lilly Soars on Weight -Loss Pill Trial Results
3 hr 5 min ago
Shares of Eli Lilly (LLY) jumped in early trading Thursday after the pharmaceutical company released late-stage clinical trial results for its oral weight-loss drug that “demonstrated statistically significant efficacy results and a safety profile consistent with injectable GLP-1 medicines.”
The first of seven Phase 3 trials for orforglipron showed it was more effective than a placebo at causing weight loss and a reduction in A1C, a long-term blood sugar metric used in evaluating diabetes treatments, Lilly said. The reductions in weight and A1C increased for patients taking higher doses of the drug.
The drug had similar gastrointestinal side effects to Eli Lilly’s injectible weight-loss drugs Mounjaro and Zepbound, including nausea, indigestion, and diarrhea. The rate of patients reporting the side effects also varied among different doses, affecting 10% to 26% of patients.
Eli Lilly said it plans to present the data at a conference and in a peer-reviewed journal. Results from other trials for orforglipron will be released later this year, and the company expects to file for Food and Drug Administration (FDA) approval as a type 2 diabetes treatment in 2026.
Lilly, rival Novo Nordisk (NVO), and others are in development of new weight-loss treatments that can be taken orally rather than injected. Pfizer (PFE) halted an oral drug trial earlier this week after a patient reported a liver injury.
Eli Lilly shares were up 14% in recent trading, leading S&P 500 gainers. Shares of Novo Nordisk, the maker of blockbuster drugs Ozempic and Wegovy sank more than 7%.
–Aaron McDade
Watch These Nvidia Levels After Wednesday’s Plunge
3 hr 47 min ago
Nvidia (NVDA) shares lost ground in early trading after falling nearly 7% Wednesday on news the company will take a $5.5 billion charge as a result of U.S. restrictions on exports of its AI chips to China.
Nvidia shares have staged a modest recovery above this month’s low but have lost about a firth of their value since the start of the year as of Wednesday’s close amid uncertainty over Washington’s trade policies and big tech AI spending.
After attracting buying interest near the lower trendline of a falling wedge pattern last week, Nvidia shares rallied sharply before running into selling pressure near the pattern’s top trendline.
It’s worth noting that although the stock fell sharply in Wednesday’s trading session, the price formed a doji, a candlestick pattern suggesting indecision between buyers and sellers.
Investors should watch key support levels on Nvidia’s chart around $96 and $76, while also monitoring crucial resistance levels near $130 and $150.
Nvidia shares were down 1.3% at around $103 in recent trading.
Read the full technical analysis piece here.
–Timothy Smith
Major Stock Index Futures Mixed After Yesterday’s Sell-Off
4 hr 45 min ago
Futures tied to the Dow Jones Industrial Average were down 1.4%.
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S&P 500 futures rose 0.5%.
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Nasdaq 100 futures were up 0.9%.
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