Midday Market Snapshot
U.S. stocks traded mixed Thursday as earnings volatility gripped Wall Street, with massive post-earnings swings across multiple sectors — from Big Tech to healthcare and industrials.
Investors rotated between AI optimism and profit-taking, while rate-cut speculation continued to shape broader market sentiment.
Tech Sector: Mixed Reactions to AI Spending and Cloud Growth
Meta Platforms (META) — Shares fell nearly 9% after management lifted 2025 capital spending guidance to as high as $72 billion, citing accelerated investments in AI infrastructure. The move overshadowed otherwise strong quarterly earnings and revenue growth from Instagram and Facebook ads.
Microsoft (MSFT) — Stock slipped 3%, even as the company reported 40% Azure cloud revenue growth and a beat on both earnings and sales. CFO Amy Hood said CapEx will continue to accelerate this fiscal year, signaling sustained AI spending pressure on margins.
Alphabet (GOOGL) — Shares gained 4% after the company delivered record Q3 results, surpassing $100 billion in revenue for the first time. Strong gains from Google Cloud (+34%) and YouTube ads (+13%) reinforced confidence in Alphabet’s AI-driven expansion.
FormFactor (FORM) — The semiconductor testing firm surged 23.6% after beating expectations with $202.7 million in revenue and $0.33 in EPS, well ahead of estimates. The results signal continued momentum across the chip supply chain.
Healthcare in Focus: Cigna, CVS, and Cardinal Health Diverge
Cigna (CI) — Shares dipped after management warned of margin pressure in its pharmacy benefits division over the next several years.
Cardinal Health (CAH) — The drug and medical equipment distributor jumped 12% after posting $2.55 in adjusted EPS on $64 billion in revenue, beating estimates across the board. Management raised full-year guidance on robust drug distribution demand.
CVS (CVS) — Shares slid 4% after the company flagged a “cautious outlook” on its Medicaid business and said Caremark PBM growth will slow as contracts transition toward drug-level pricing.
Bristol-Myers Squibb (BMY) — Climbed 5% after raising full-year EPS guidance to $6.40–$6.60, driven by strong cancer therapy sales.
Eli Lilly (LLY) — Rose 3.5% as quarterly revenue hit $17.6 billion, easily topping estimates, and the company lifted its 2025 revenue outlook on booming obesity drug demand.
Industrials and Materials: Sharp Gains and Steep Losses
FMC Corp. (FMC) — Plunged 42% after slashing its quarterly dividend from $0.58 to $0.08 per share and cutting its full-year outlook despite slightly better-than-expected quarterly earnings.
Terex (TEX) — Fell 18% after reporting $1.39 billion in revenue, missing forecasts amid soft demand in its aerial and materials processing segment.
Cleveland-Cliffs (CLF) — Dropped 11% following news the company will sell 75 million shares in a secondary offering to pay down debt.
Perimeter Solutions (PRM) — Soared 26% after posting $186.3 million in EBITDA, easily surpassing expectations on strong wildfire retardant demand.
Consumer and Retail Movers
Carvana (CVNA) — Dropped 12% as net income of $263 million missed forecasts despite revenue beating estimates. Investors remain cautious on used-car market volatility.
Chipotle (CMG) — Tumbled 15% after cutting same-store sales forecasts for the third straight quarter, citing lower foot traffic and weakening discretionary demand.
Sprouts Farmers Market (SFM) — Crashed 26% after reporting disappointing same-store sales and weak forward guidance.
eBay (EBAY) — Fell 13% following a soft Q4 outlook, despite topping expectations in Q3 with $1.36 EPS on $2.82 billion in revenue.
Other Notable Movers
- Viavi Solutions (VIAV): +20% after beating Q1 estimates and raising guidance.
- Glaukos (GKOS): +19.7% after narrower-than-expected losses and raised full-year revenue guidance.
- C.H. Robinson (CHRW): +20% after strong Q3 earnings and a new $2 billion share buyback.
- Metsera (MTSR): +24% after receiving a $77.75/share takeover offer from Novo Nordisk, representing a 49% premium.
- Align Technology (ALGN): +6% after reporting $995.7 million in revenue, topping estimates.
Market Context
Today’s session encapsulates the current state of U.S. markets: strong earnings overall, but selective reactions driven by AI spending trends, rate expectations, and margin guidance.
Investors are rewarding cloud growth and cost discipline, while punishing any signs of shrinking profitability or margin compression — particularly in sectors where AI infrastructure investments are still ramping.
WSA Take
Thursday’s market whiplash highlights the new earnings reality of the AI economy — one where margin management matters more than hype.
Tech firms like Meta, Microsoft, and Alphabet are pouring billions into AI infrastructure, while traditional players like Cardinal Health and FMC are feeling the pressure of capital discipline.
The divergence between AI-fueled expansion and old-economy contraction is widening — and that tension is shaping the broader market’s next phase.
Read our recent coverage on Alphabet’s record-breaking earnings.
Visit the Wall Street Access homepage for the latest analysis.
Disclaimer:
Wall Street Access does not work with or receive compensation from any public companies mentioned. Content is for informational and educational purposes only.
