Wednesday’s trading session is set to be dominated by key tech earnings from Snowflake and Salesforce, with both CEOs appearing on ‘Mad Money.’ Additionally, several companies like Abercrombie & Fitch and Dick’s Sporting Goods report pre-market, while the airline sector shows robust gains ahead of the summer travel season.
The logistics industry is also in focus with the upcoming spinoff of FedEx Freight, highlighting a dynamic environment for trucking companies, even as the broader market continues its upward trajectory.
As the S&P 500 cruises to fresh records, buoyed by a robust tech rally, Wall Street turns its gaze to a flurry of key reports and industry shifts. "Stocks @ Night," your daily after-hours digest, offers an exclusive preview of what's expected to move markets in the upcoming session, straight from CNBC TV's producers.
Tech Giants Take Center Stage on 'Mad Money'
Wednesday night promises a high-profile edition of 'Mad Money' with Jim Cramer, featuring the CEOs of two major tech players: Snowflake and Salesforce. Both companies report earnings after the closing bell, and investor sentiment remains cautious.
- Snowflake (SNOW): CEO Sridhar Ramaswamy will join Cramer. While the stock has seen a modest 2.6% gain over the past three months, it remains significantly down (37%) from its November peak. Analysts are largely optimistic, with 46 of 53 tracked by FactSet rating it 'buy' or 'overweight.' The average target price of $231.38 suggests substantial upside from its current $177.60. Implied volatility for Snowflake earnings is a steep 12%.
- Salesforce (CRM): Marc Benioff, CEO of Salesforce, will also be featured. The stock has shed 10% in the last three months and is 36% below its high from last year. Wall Street has noted Salesforce missing revenue estimates multiple times recently. Of 55 analysts, 40 rate it 'buy' or 'overweight,' with an average target of $254.43 against Tuesday's close of $179.08. Implied volatility for Salesforce is around 8%, a consistent level over the past four quarters, though actual moves have typically been half that.
Pre-Market Headlines and Corporate Reports
Before the market opens, 'Squawk Box' will dissect a series of earnings reports from diverse sectors:
- Abercrombie & Fitch (ANF): The apparel retailer has struggled, with shares down nearly 25% in the last three months and 43% from its January high.
- Dick's Sporting Goods (DKS): Despite a 15% loss over the past three months, the stock notably hit a new high on Tuesday.
- Manchester United (MANU): The sports franchise reports Wednesday morning. Shares have gained 12% in three months but are off 4.3% from last week's high. The team's third-place Premier League finish provides a solid backdrop.
- Bank of Montreal (BMO): U.S.-listed shares have climbed over 8% in the past three months, while Canadian-traded shares reached a new high on Monday.
Airlines Soar Ahead of Summer Travel Season
As summer approaches, CNBC TV's Phil LeBeau will deliver insights from a crucial airline conference, with the sector showing strong momentum despite high jet fuel prices. Most airline stocks have performed well in the last month:
- Delta Air Lines (DAL): Up 16% in the past month, hitting a new high on Tuesday.
- United Airlines (UAL): Rose 14% in the last month, though still 11% off its January high.
- American Airlines (AAL): Gained 22% in the last month, 10% below its January high.
- Southwest Airlines (LUV): Advanced 7% in the past month, but 23% off its February high.
- JetBlue Airways (JBLU): Flat over the past month but up 13% in May, 18% below its February high.
- Alaska Air Group (ALK): Jumped 5% in the past month, up 12% in May, yet 33% off its September high.
FedEx Freight Spinoff Signals New Era for Trucking
CNBC TV's Frank Holland will cover the impending launch of FedEx Freight's trading next week under the ticker FDXF. This spinoff by FedEx's board marks a significant development for less-than-truckload (LTL) companies, which consolidate smaller shipments. While FedEx (FDX) is off 1% from its April high, it has surged 45% in six months.
Other LTL players are also in motion:
- Old Dominion Freight Line (ODFL): Down 7% from its April high but gained 6% in the past week.
- XPO (XPO): Down 9% from its April high but gained 4% in a week.
- Saia (SAIA): Hit a new high on Tuesday, surging 67% in six months.
- ArcBest (ARCB): Off 4% from its April high but advanced 27% in the past three months.
- TFI International (TFII): Hit a new high on Tuesday, adding over 8% in the past month.
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