Key takeaways
- The S&P 500 jumped 1.0% on Friday, April 26, shaking off inflation data and getting a boost from strong Big Tech earnings.
- Resmed shares soared when the maker of devices that treat sleep apnea said the growing use of weight-loss drugs would not slow its sales.
- Intel's quarterly results beat estimates, but shares fell amid disappointing guidance and uncertainties around the company's AI opportunity.
Although the latest personal consumption expenditure (PCE) data showed inflation persisted in March, strong earnings reports from several big tech companies helped push major US stock indexes higher on Friday.
The S&P 500 rose 1.0% in the last trading session of the week. The Nasdaq soared 2.0%, while the Dow Jones rose 0.4%.
Resmed (RMD) stock led the S&P 500 higher, soaring 18.9% after the healthcare technology company posted better-than-expected quarterly earnings and revenue results. Demand for Resmed's products remained strong, particularly its sleep devices, and the company refuted concerns that the growing use of weight-loss drugs could reduce sales.
Google's parent company, Alphabet (GOOGL), beat estimates for first-quarter sales and profits, and its shares rose 10.2%. The CEO highlighted Alphabet's YouTube, search and cloud businesses as drivers of the strong performance. Alphabet also announced its first dividend and approved a massive share buyback program. Alphabet Class C (GOOG) shares rose 10.0%.
Shares of high-performance server maker Super Micro Computer (SMCI) rose 8.9% ahead of the company's quarterly earnings report, due out Tuesday. The pre-earnings gains reversed some of the big losses the stock posted last week after Super Micro decided not to pre-announce its results, raising questions about how much the company has capitalized on artificial intelligence (AI) opportunities. .
Dexcom (DXCM), which makes continuous glucose monitors to help patients manage diabetes, reported better-than-expected sales and profits in the first quarter, but its shares fell 9.9%, marking the strongest performance weak S&P 500 on Friday. The midpoint of Dexcom's updated full-year sales guidance remained below analyst forecasts and operating expenses increased from a year ago.
Tech giant Intel (INTC) found itself in a similar situation, beating revenue and results estimates for the first quarter but providing disappointing guidance for the current quarter. The slow growth of Intel's data center and AI segment raised questions about the company's ability to benefit from a potential AI boom. Intel shares fell 9.2% that day.
Shares of Old Dominion Freight Line (ODFL) fell 7.2%, extending losses recorded earlier this week when the less than expected truckload (LTL) shipping company posted lower-than-expected quarterly revenue. Analysts at TD Cowen lowered their price target for Old Dominion shares following the report.
