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CNBC Daily Open: Opec extends cuts, Nvidia showcases new chip
  + stars: | 2024-06-03 | by ( Abid Ali | ) www.cnbc.com   time to read: +3 min
This report is from today's CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. OPEC+ extends cutsOPEC and it allies agreed to extend official crude production cuts into 2025 amid lackluster demand. Saudi Arabia's energy minister Prince Abdulaziz bin Salman said OPEC+ wants concrete rate cuts before factoring in the potential impact on energy demand. New AI chip RubinNvidia unveiled its next generation artificial intelligence chip, Rubin, a mere three months after launching its Blackwell model.
Persons: Prince Abdulaziz bin Salman, Rubin, Blackwell, Dow, UnitedHealth, Bill Ackman, It's, Michael Khouw Organizations: CNBC, Saudi Aramco, Rubin Nvidia, AMD, Intel, Microsoft, Google, Dow Jones, Federal, Dow, Nasdaq, Nvidia, Tesla, Pershing, Moderna, Drug Administration, GSK, Pfizer Locations: OPEC, Saudi Arabia, Russia, Saudi, U.S, Moderna
How much do we pay for an enterprise software business that may have hit the wall, suddenly slowing down to sales growth in the high single digits from growth in the double digits? But Salesforce is the most glaring of the enterprise software behemoths, which include ServiceNow , Adobe , Workday , SAP , Intuit , and fallen star MongoDB . Or to put it another way, Salesforce needs its clients to hire more people to increase sales growth. SaaS is another form of enterprise software, is another form of applications software, is another form of kryptonite. Of course, there will be enterprise software companies that defy the slowdown.
Persons: Marc Benioff, Dow Jones, Salesforce, Ullal, Jensen Huang, that's, Thoma, , Elon Musk's, Wells, It's, Charlie Scharf, Goldman Sachs, Dan Schulman, Bill Ready, Stanley Black, Decker, Jim Cramer's, Jim Cramer, Jim, Marlena Sloss Organizations: Oracle, Dow, Adobe, SAP, Intuit, Mad, Arista Networks, Microsoft, Nvidia, Arm Holdings, Thoma Bravo, Taiwan Semiconductor, Indy, Federal, Paypal, Fed, Jim Cramer's Charitable, CNBC, Bloomberg, Getty Locations: Norfolk Southern, Wells Fargo, Wells, Dover, Informatica
And Veeva's CEO said on his company's earnings call that generative artificial intelligence has been "a competing priority" for customers. Add it all up and it was a brutal week for software and enterprise tech. "Every enterprise software company kind of has adjusted" since after the pandemic, Benioff said on his company's earnings call. "Macroeconomic headwinds are still out there," Okta finance chief Brett Tighe said on the company's earnings call. Veeva CEO Peter Gassner cited "disruption in large enterprises as they work through their plans for AI."
Persons: Marc Benioff, Dell, Salesforce, Benioff, Brett Tighe, Daniel Dines, Dines, Rob Enslin, Tomer Weingarten, Peter Gassner, Gassner, Zscaler, Jay Chaudhry, — CNBC's Ari Levy, FBB, Mike Bailey Organizations: Salesforce, Economic, Computing Fund, Dell, Barclays, CNBC Locations: Davos, Switzerland, Paycom, U.S, UiPath, reprioritize
In this way, the nonfarm payroll report also offers clues on the near-term path of inflation. As always, payroll processing firm ADP will release its May private-sector jobs report before the government's nonfarm payroll report. On Tuesday, we'll get the latest JOLTS data, shorthand for the Job Openings and Labor Turnover Survey conducted by the Labor Department. Earnings A few noteworthy earnings reports set for next week include CrowdStrike and Hewlett Packard Enterprise after the close on Tuesday. A report released by the Bureau of Labor Statistics showed the US economy added 311,000 jobs in February.
Persons: industrials, Eaton, Locker, Salesforce, we've, FactSet, Dow Jones, we'll, Ferguson, OLLI, Campbell Soup, Brown, Forman, LULU, JM Smucker, Jim Cramer's, Jim Cramer, Jim, Joe Raedle Organizations: Nasdaq, Dow Jones, Federal, Energy, Coterra Energy, Palo Alto Networks, Broadcom, Microsoft, Costco, Labor, Labor Department, Institute for Supply, Hewlett Packard Enterprise, Body, Donaldson Company, DCI, Brands, Natural Foods, THOR Industries, ABM Industries, Vail Resorts, MTN, NGL Energy, Jim Cramer's Charitable, CNBC, Bureau of Labor Statistics, Getty Locations: Chicago, Palo, U.S, Bath, Toro, Miami , Florida
The S & P 500 is a mere 1.2% from its all-time high, yet only 60% of its member stocks are up for the year and just over 40% last week were above their 50-day moving average. .SPX YTD mountain S & P 500, 1-year We seem to undergo one of these periods of decrying a lack of market breadth every few months in recent years. Bespoke Investment Group last week looked at the small number of past instances when the S & P 500 was so close to a record yet most stocks were beneath a 50-day average. The 100-day correlation between the S & P 500 and the Dow Jones Industrial Average has hit its lowest level since the dot-com bust of the early 2000s, according to CNBC's Data & Analytics group. The S & P 500 at the highs hit 21-times forward earnings, and we've spent very little time above that outside the pandemic melt-up and the tech boom/bust a quarter-century ago.
Persons: Warren Pies, Dow, Scott Chronert, we've Organizations: Investment, 3Fourteen, Nvidia, Treasury, Microsoft, Apple, Dow Jones, Dell Technologies, Citi, UBS Locations: Banks
CNBC Daily Open: Trump guilty in hush money trial
  + stars: | 2024-05-31 | by ( Abid Ali | ) www.cnbc.com   time to read: +3 min
Traders work on the floor of the New York Stock Exchange during afternoon trading on Jan. 22, 2024 in New York City. The Dow Jones and S&P both hit all time highs with the Dow Jones closing over 38,000 points for the first time ever as stocks continue to rise. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Saleforce sinks stocksWall Street closed lower after Salesforce had its worst day in two decades. Salesforce plungesShares of Salesforce slumped more than 20%, their worst trading day in 20 years, after the cloud software company reported weaker-than-expected results.
Persons: Dow Jones, Trump, Donald Trump, Daniels, Salesforce, Dell, Dell's, Foot, Locker's, Mary Dillon Organizations: New York Stock Exchange, CNBC, New, Republican National Convention, Dow Jones, Nasdaq, Nvidia, Microsoft, Treasury, Dell, Citi Locations: New York City, New York, U.S, Milwaukee
Dow member Salesforce dropped about 19% during the week, which made it the most oversold stock in the market. With this in mind, CNBC Pro screened for the most overbought and oversold stocks on Wall Street as measured by their 14-day relative strength index, or RSI. Stocks with a 14-day RSI below 30 are considered oversold, suggesting shares may be due for a comeback. On the other hand, a 14-day RSI higher than 70 indicates a stock is overbought and may soon pull back. Biopharmaceutical company Bristol-Myers Squibb was the second-most oversold stock of the week.
Persons: Salesforce, Goldman Sachs, Morgan Stanley, Myers Squibb, Meyers, Ralph Lauren Organizations: Federal, Nasdaq, Dow Jones, Dow, Investors, CNBC Pro, Wall Street, LSEG, Meyers Squibb, Tech, HP Locations: Bristol
AI everywhere at Viva TechAt Viva Tech, AI was everywhere. France boasts a strong AI research and development ecosystem, home to key facilities like the Facebook AI Research center from Meta and Google's AI research hub in Paris, as well as leading universities. He referred to H's mammoth funding round as an example of the momentum surrounding French AI right now. watch nowLevy said roughly 40% of the tech demos at Viva Tech were AI. He said that Google's recently introduced Gemma AI, a lightweight, open-source model, was developed heavily at the U.S. internet giant's Paris AI hub.
Persons: Emmanuel Macron, Yoan Valat, Eric Schmidt, Porte, Bruno Le Maire, CNBC's Arjun Kharpal, Le Maire, Etienne Grass, Capgemini, Imran Ghory, Ghory, CNBC's Andrew Ross Sorkin, Macron, Mistral, Yann LeCun, James Manyika, Google's, Maurice Levy, Karen Tso, Levy, Google's Manyika, Gemma AI Organizations: Afp, Getty, PARIS —, Viva Technology, Microsoft, Viva Tech, L'Oreal, Porte de, Facebook, CNBC, Blossom, Meta, Google, Paris, Groupe, U.S, Innovation Locations: Elysee, Paris, France, PARIS — France, China, Europe, Meta, French, U.S, Israel, Dealroom
EU approves Italian aid for $5.4 billion STMicro chip plant
  + stars: | 2024-05-31 | by ( ) www.cnbc.com   time to read: +3 min
STMicroelectronics has committed 5 billion euros ($5.4 billion) of investment in what it calls the world's first fully integrated Silicon Carbide (SiC) plant in Italy. The project is backed by 2 billion euros from the Italian state, and is the result of the EU's Chips Act which aims to provide support for Europe's chip industry. The European Commission on Friday approved Italian state aid for STMicroelectronics to build a 5 billion euro ($5.4 billion) microchip plant as Europe battles to reduce reliance on Asian imports for vital manufacturing components. The STMicro plant will produce chips made from silicon carbide, which is more energy-efficient than standard silicon. STMicro is the largest maker of silicon carbide chips, which are more expensive to manufacture than regular silicon chips but favoured by automakers because they are energy-efficient, lightweight and tough.
Persons: STMicroelectronics, Margrethe Vestager, it's, Vestager, STMicro Organizations: Carbide, European, United, European Union, Union, BMW, Renault Locations: Italy, Catania, Sicily, Rome, China, Asia, United States, Catania . U.S, STMicro
Here's a rapid-fire update on all 33 stocks in Jim Cramer's Charitable Trust, the portfolio we use for the CNBC Investing Club. Below $200 a share is the level we'd get interested in buying more Salesforce stock, Jim said. The industrial name will continue to be a beneficiary of the AI trade due to Eaton's booming data center business. Alphabet : If this mega-cap name experiences a move lower, investors should scoop up shares, Jim said. Nvidia : There's not much more to say about Nvidia in light of another blowout earnings report and the strong guidance accompanying it.
Persons: Jim Cramer's, Jim, Apple's, Goldman Sachs, Salesforce, We've, Danaher, he'd, Walt Disney, We're, Estee Lauder, Eaton, Ford, Motors, Mary Dillon's, It's, Linde, Eli Lilly, Mark Zuckerberg's, Morgan Stanley, we're, Stanley Black, we've, Wynn, Jim Cramer, Michael M Organizations: Jim Cramer's Charitable Trust, CNBC, Club, Apple, Abbott Laboratories, Abbott Labs, Amazon Web Services, Broadcom, Dell, Samsung, Costco Wholesale, Coterra Energy, DuPont De Nemours, DuPont, The, Eaton, Ford, GE Healthcare, Honeywell, Jim, Linde, Microsoft, Nvidia, Palo Alto Networks, Palo Alto, Change, Procter & Gamble, Constellation Brands, Constellation, Modelo, Corona, Federal Reserve, TJX, Marshalls, Wynn Resorts, Jim Cramer's Charitable, Traders, New York Stock Exchange, Santiago, Getty Locations: China, Dover, Eaton, U.S, Maxx, HomeGoods, Wells Fargo, Macau, New York City
Its fiscal first-quarter revenue was $9.13 billion, versus the $9.17 billion expected from analysts polled by LSEG. Foot Locker's earnings per share came in at 22 cents, versus the LSEG consensus estimate of 12 cents per share. Agilent Technologies — The stock fell nearly 8% after the company reported a slight revenue miss but an earnings beat. However, Hormel's adjusted earnings per share of 38 cents topped the 36 cents expected from analysts. American Eagle Outfitters — The retail stock slipped 3.6% after the clothing company reported weaker-than-expected sales in its fiscal first quarter on Wednesday.
Persons: Salesforce, LSEG, FactSet, Rob Enslin, Corie Barry, Agilent, Nutanix, Mike Mathias, , Lisa Kailai Han, Hakyung Kim Organizations: LSEG, Revenue, HP —, HP, StreetAccount . Revenue, Burlington, American Eagle Outfitters, CNBC Locations: LSEG
Salesforce shares slide following weak forecast
  + stars: | 2024-05-30 | by ( ) www.cnbc.com   time to read: 1 min
In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailSalesforce shares slide following weak forecastCNBC's Deidre Bosa reports on the latest news from Salesforce, and software space overall.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailMarket is in the 'digestion phase' of new software applications, says Jefferies' Brent ThillBrent Thill, Jefferies tech sector leader, joins 'Squawk on the Street' to discuss what happened with Salesforce's quarterly earnings results, where Salesforce will be spending more of its capital, and much more.
Persons: Jefferies, Brent Thill Brent Thill Organizations: Jefferies
CNBC's Jim Cramer on Thursday told investors that enterprise software companies may not be as lucrative as they have been over the past few years as artificial intelligence technology gains traction. CEO Marc Benioff described a "measured" buying environment across the industry after Covid, when companies had bought up large amounts of enterprise software. While Cramer said he's not writing off Salesforce, he suggested there may be too many enterprise software companies in the business, saying perhaps customers have purchased more of its products than they can actually use. Companies could be reevaluating their investment in enterprise software as they figure out how AI can change business operations, according to Cramer. He noted that some enterprise software is designed for jobs that AI could make superfluous.
Persons: CNBC's Jim Cramer, Jensen Huang, Cramer, Thursday's, Marc Benioff, he's Organizations: Nvidia
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailSalesforce shares plunge on first revenue miss since 2006: Here's what to knowBrian Schwartz, Oppenheimer senior analyst and managing director, joins 'Squawk Box' to break down Salesforce's quarterly earnings results, which reported weaker-than-expected revenue and issued guidance that trailed Wall Street’s expectations, impact of the company's AI offering, and more.
Persons: Brian Schwartz, Oppenheimer
Foot Locker — Shares rallied more than 12% in the premarket after the apparel and sneaker retailer reported first-quarter earnings that beat expectations . The company posted an adjusted profit of 22 cents per share, while analysts polled by LSEG expected earnings of 12 cents per share. The company's $3.18 billion revenue also came below the expected $3.34 billion. American Eagle Outfitters — Shares slipped 7% after the company posted weaker-than-expected sales in its fiscal first-quarter, despite beating on earnings. Analysts surveyed by StreetAccount were expecting a loss of 30 cents per share on $84.4 million of revenue.
Persons: Salesforce, Dan Dolev, Birkenstock, LSEG, Mary Dillon, Mike Mathias, StreetAccount, UiPath, Rob Enslin, — CNBC's Michelle Fox, Fred Imbert, Yun Li, Sarah Min, Jesse Pound, Pia Singh Organizations: PayPal, Mizuho, ISI, CNBC, LSEG, Revenue, American Eagle Outfitters, Finance, HP Locations:
Shares of Salesforce dragged the Dow lower after it posted its first revenue miss in nearly 20 years. Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. AdvertisementUS stocks continued a painful slide lower on Thursday as traders turned their attention to upcoming inflation data that could set the tone for the market as it heads into the summer months. ET, both indexes became stuck on several websites, though individual stock prices continued to update normally. Shares of Salesforce dragged the Dow as the stock dropped 20% after it reported its first revenue miss in almost 20 years.
Persons: Stocks, Salesforce, , Dow, David Russell Organizations: Service, Dow Jones, Dow, Treasury, Global, Barclays, Here's
Salesforce stock plunged 21% after the company reported its first revenue miss since 2006. AdvertisementSalesforce stock plunged as much as 21% on Thursday after the company reported its first revenue miss since 2006. Here are the key numbers:AdvertisementQ1 Revenue: $9.13 billion, versus analyst estimates of $9.17 billion$9.13 billion, versus analyst estimates of $9.17 billion Q1 Adjusted earnings per share: $2.44, versus analyst estimates of $2.38$2.44, versus analyst estimates of $2.38 Q2 Revenue guidance: $9.2 billion to $9.25 billion, versus analyst estimates of $9.37 billion"Macro headwinds returned with a vengeance," analysts at Citi said in a note on Thursday. AdvertisementGoldman Sachs reiterated its "Buy" rating on Salesforce and categorized the weakness in the company's results as "cyclical headwinds" that should ultimately dissipate. AdvertisementCiti reiterated its "Neutral" rating and took a more cautious view on Salesforce following their results.
Persons: , Goldman Sachs, Dan Ives, Ives Organizations: Service, Citi, Bank of America, Sales
An Exxon gas station sign is seen in the Brooklyn borough of New York City, on Oct. 6, 2023. Four years ago, Exxon Mobil's reign as the longest-serving component in the Dow Jones Industrial Average abruptly ended when the oil major was replaced by Salesforce in August 2020 in the biggest shake-up in years. That reshuffling of the Dow was seen as a sign of the times, with the energy sector struggling from a total collapse in oil prices into negative territory during the Covid-19 pandemic. Meanwhile, technology stocks booked strong gains during the work-from-home era. The oil major's stock has gained nearly 170% since the August 24, 2020, announcement of its exit from the Dow, while Salesforce has gained just 4% over the same period.
Persons: Exxon Mobil's, Salesforce, Dow Organizations: Exxon, Dow Jones, Dow Locations: Brooklyn, New York City
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailI've seen firsthand how powerful Salesforce is, says Jim Cramer'Mad Money' host Jim Cramer looks at the growing 'threat' of AI when it comes to software companies and how you should approach it as an investor.
Persons: Jim Cramer
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWhy Wedbush's Dan Ives is staying bullish on Salesforce despite first revenue miss since 2006Dan Ives, Managing Director of Equity Research at Wedbush, discusses Salesforce's stock plunge following its first revenue miss since 2006.
Persons: Dan Ives Organizations: Equity Research, Wedbush
In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailSalesforce's plunge doesn't deter bull case for stock, says Citizens JMP's Patrick WalravensPatrick Walravens, director of technology research at Citizens JMP, joins "The Exchange" to break down Saleforce's stock slump.
Persons: JMP's Patrick Walravens Patrick Walravens Organizations: Citizens
What do the charts say after this sudden 20% drop in price? After making a new all-time high of around $318 in early March, Salesforce demonstrated choppy, sideways price action into mid-April. A gap lower in price pushed CRM below its 50-day moving average, which often serves as an early warning sign of an impending trend change. From mid-April until this week, Salesforce has again settled into a sideways price range, this time between $268 and $290. While CRM was in a somewhat precarious position leading into this week, the gap lower post-earnings represented a sudden revaluation for this former technology leader.
Persons: Let's, Salesforce, we'd, it's, David Keller Organizations: CRM, CMT
Photographer: David Odisho/Bloomberg via Getty ImagesShares of Salesforce tumbled 20% Thursday morning, putting the stock on pace for its worst day in nearly 20 years. Its worst trading day on record is July 4, 2004, when shares fell 27% just days after the company went public. Salesforce expects second-quarter adjusted earnings per share of $2.34 to $2.36 on $9.2 billion to $9.25 billion in revenue. Goldman Sachs analysts reiterated their buy rating on the stock and said they view Salesforce as a "high-quality software franchise." Goldman Sachs analysts said in a note Wednesday that Salesforce is "an under-appreciated Gen-AI winner."
Persons: Marc Benioff, Benioff, David Odisho, Salesforce, LSEG, Salesforce's, Goldman Sachs, Morgan Stanley, — CNBC's Michael Bloom, Jordan Novet Organizations: Salesforce.com Inc, Bloomberg, Getty, Citi Locations: San Francisco , California, Francisco's
CNBC Daily Open: Dow drops, Nvidia couldn't save Nasdaq
  + stars: | 2024-05-30 | by ( Abid Ali | ) www.cnbc.com   time to read: +3 min
This report is from today's CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Treasury yields weigh on Wall StreetThe S&P 500 snapped its three-day winning streak as Treasury yields climbed. Despite Nvidia's continued rise since its earnings report last week, the tech giant couldn't prevent the Nasdaq Composite from falling. Peltz dumps Disney stakeActivist investor Nelson Peltz has sold his entire stake in Disney, according to a person familiar with the matter.
Persons: Nvidia's, Salesforce, Nelson Peltz, Peltz, Jay Rasulo, Bob Iger, Robert Isom, Vasu Raja, Raja, Korea's Kospi, Hang Seng, CNBC's Brian Evans Organizations: New York Stock Exchange, CNBC, Nasdaq, Dow Jones, Disney, American Airlines, Treasury, Nikkei, China's CSI, Dow Locations: New York City, Disney, Asia, Pacific, Japan, South Korea, China
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