On Tuesday, U.S. equities ran to new highs but pulled back as we neared the close. Have no fear, as more gains in the stock market today took the SPDR S&P 500 ETF (NYSEARCA:SPY) to new all-time highs yet again.
It brought the SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA) and the PowerShares QQQ ETF (NASDAQ:QQQ) along for the ride too, as they also hit new record highs. So far it seems, nothing can derail the bull market. Tensions with Iran and the spread of the coronavirus from China have merely been blips on the radar.
How long will that keep up? For now, the trend continues to hold up in bulls’ favor, even as the new virus continues to result in conservative guidance from many companies.
Carnival Cruise (NYSE:CCL) said the coronavirus is impacting voyages throughout Asia. The cancellations and impact on global bookings will have a material impact on its 2020 guidance, according to the company. If Carnival cancelled all of its operations in Asia through the end of April, it would impact earnings by 55 to 65 cents per share, management said.
Still, shares rallied over 2.5% in afternoon trading on the news.
Earnings Roundup
Shopify (NASDAQ:SHOP) was one of the biggest movers in the stock market today. The stock continues to torture the shorts with its sky-high valuation and will be the “one that got away” for many investors. That’s evident by Shopify’s hitting new highs on Wednesday, and rallying more than 12% in afternoon trading.
Propelling the stock higher is Shopify’s better-than-expected fourth-quarter results. Earnings of 43 cents per share beat expectations by 19 cents, while revenue of $505.2 million beat expectations by $23 million and grew 46.9% year-over-year.
Some are surprised by the rally, given that the midpoint of management’s first-quarter revenue outlook of $440 million to $446 million is a bit shy of the $444 million consensus. That said, management has earned the benefit of the doubt, while their full-year sales outlook of $2.13 billion to $2.16 billion came in ahead of the $2.12 billion estimate.
CVS Health (NYSE:CVS) wishes it could get a similar response to its earnings. The company delivered a top- and bottom-line beat, but so far, the stock hasn’t been able to hold its meager gains, turning slightly lower in the stock market today. However, management’s full-year non-GAAP earnings outlook of $7.04 to $7.17 per share vs. consensus expectations of $7.15 per share may be cause for the hesitation.
CyberArk Software (NASDAQ:CYBR) shares were plunging on Wednesday, falling almost 14% in afternoon trading. While CYBR beat on earnings and revenue expectations, the company’s earnings guidance came in well below Street expectations for both the next quarter and the full year.
CYBR, CVS and SHOP were all included in our Top Stock Trades column from Wednesday.
Movers in the Stock Market Today
BP (NYSE:BP) was making some waves on Wednesday. The company is planning a reorganization to go along with its goal of being “net zero” with its emissions by 2050. The move is certainly a notable one for the energy sector. Still, BP seems intent on its plans, with CEO Bernard Looney arguing that “the world’s carbon budget is finite and running out fast.”
That trip to Disneyland just got more expensive. That’s thanks to Disney (NYSE:DIS) putting through another price hike. For a one-day pass, it may now cost more than $200, as ticket prices rose as much as 5%. That said, Disney has a tiered ticket system, where its most in-demand days cost more (now $209 for a Hopper ticket). To visit just one park, the prices are lower, but the increases went across the board, including annual passes.
Boeing (NYSE:BA) shares were on the rise Wednesday, climbing almost 1% on some potentially positive 737 Max news.
The company will resume production of the jet before it gains recertification from the Federal Aviation Administration. Production of the 737 Max was halted last month and just yesterday, investors read that Boeing did not receive any orders in the month of January for the first time since 1962.
Facebook’s (NASDAQ:FB) 2014 acquisition of WhatsApp for $19 billion continues to grow. The platform recently hit 2 billion users, according to the company. That’s up from the 1.5 billion it had just two years ago. Investors still wonder if WhatsApp will be a monetization vehicle in the future, much like Instagram has been.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long DIS.
