Stocks continued to fall in afternoon trading as market participants looked for direction outside of Nvidia's (NASDAQ: NVDA) massive market gains. The Dow Jones Industrial Average dropped over 400 points, while the S&P 500 Index and Nasdaq Composite lost about 0.7% and 0.6%, respectively.
Here's how the market settled on Wednesday:
S&P 500 Index (NYSE: SPY): -0.74% or -39.09 points to 5,266.95
Dow Jones Industrial Average (NYSE: DIA): -1.06% or -411.32 points to 38,441.54
Nasdaq Composite Index (NASDAQ: QQQ): -0.58% or -99.30 points to 16,920.58
In the News:
Walgreens (NASDAQ: WBA) announced Wednesday plans to cut prices on some 1,300 items in a "summer of savings" sales event in effort to lure in consumers that have been pressured by persistently high inflation. This announcement follows similar moves from other retailers including Target (NYSE: TGT).
"Walgreens understands our customers are under financial strain and struggle to purchase everyday essentials," said Tracey Brown, EVP and President of Walgreens Retail & Chief Customer Officer, in a statement. "We continue to be committed to our customers by lowering prices on over a thousand additional items, something we've been doing since October of 2023."
ConocoPhillips (NYSE: COP) has agreed to buy Marathon Oil (NYSE: MRO) in an all-stock deal worth $17 billion. Under the deal, ConocoPhillips will have 2 billion additional barrels of resources in its United States inventory, expanding its shale fields in Texas, New Mexico and North Dakota.
"This acquisition of Marathon Oil further deepens our portfolio and fits within our financial framework, adding high-quality, low cost of supply inventory adjacent to our leading U.S. unconventional position," ConocoPhillips CEO Ryan Lance said in a statement.
American Airlines (NASDAQ: AAL) shares were under pressure on Wednesday after the carrier slashed its sales outlook late Tuesday and announced the departure of its chief commercial officer, Vasu Raja. The company expects unit revenues to fall by as much as 6% in the second quarter compared to a year earlier, down from its previous forecast of a decline of no more than 3%. American Airlines also expects its adjusted second-quarter earnings to a range of $1.00 to $1.15 per share, below its previous estimate of $1.15 to $1.45 per share.
On the Earnings Front:
Abercrombie & Fitch (NYSE: ANF) shares popped on Wednesday after the apparel retailer reported its best first-quarter in history, with sales rising 22% year-over-year to $1.02 billion. For its current quarter, the company expects sales to increase by a mid-teens percentage. For its full year outlook, Abercrombie expects sales to grow by 10%, up from its previous outlook of between 4% and 6%.
"We successfully navigated seasonal transitions with relevant assortments and compelling marketing, leveraging agile chase capabilities and inventory discipline, driving sales above our expectations," CEO Fran Horowitz said in a statement. "Growth was broad-based across regions and brands with Abercrombie brands registering 31% growth and Hollister brands delivering growth of 12%."
Dick's Sporting Goods (NYSE: DKS) shares also climbed higher on Wednesday as the big-box sports retailer's comparable sales grew 5.3% during its fiscal first quarter, well above estimates for 2.4% growth. Meanwhile, sales rose to $3.02 billion, up 6% year-over-year. Dick's now expects earnings per share between $13.35 and $13.75 for its full year outlook, up from its previous range of $12.85 to $13.25.
"We saw growth across all of the different areas of our business," CEO Lauren Hobart said during the company's earnings call with analysts. "The consumer is absolutely putting a priority on a healthy and active lifestyle ... we are providing them with an experience that they're clearly choosing and that's both through the products that we have in our stores, as well as the experience that we provide in-store and online."
For Thursday:
Market participants will react to new readings for Q1 GDP (first revision) and pending home sales on Thursday as they look ahead towards April's PCE index report due out Friday morning.