Stocks were choppy Tuesday as market participants took a breather following three straight days of impressive gains.
Amid a relatively bare economic calendar, investors turned their attention to a busy earnings docket with several high-profile names making big moves.
Among them was Palantir Technologies (PLTR), which fell 15.1% after its first-quarter results. The data analytics firm reported earnings and revenue that beat analysts' estimates and raised its full-year revenue forecast. Still, its upwardly revised fiscal 2024 outlook was below what Wall Street was expecting.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
However, Wedbush analyst Daniel Ives remains upbeat about Palantir's growth outlook. In fact, he sees "increased momentum" in the stock's story thanks to the company's Artificial Intelligence Platform (AIP).
"AIP [is] leading the charge in generating significant demand across both commercial and government landscapes while [being] well-positioned to gain a larger share of this $1 trillion opportunity taking place with AI use cases exploding globally," Ives said after earnings. The analyst has a Buy rating and a $35 price target on PLTR, representing implied upside of 62% to current levels.
Buy the dip on Disney stock?
Walt Disney (DIS) was another notable post-earnings mover, with the blue chip stock diving 9.5% after its results. The media and entertainment giant disclosed higher-than-expected earnings for its fiscal second quarter and said its Disney+ and Hulu streaming services reported a profit for the first time. However, Disney's total revenue fell short of what Wall Street expected.
"Today's market reaction to a decent earnings report from Disney shows there are still too many moving parts and uncertainties at the Mouse House for investors to get excited," says Don Montanaro, president of Firstrade.
Montanaro expects more near-term volatility for DIS as several initiatives shake out. However, he adds that "smart investors might want to buy Disney when it dips like it has today, and then patiently hold as the future dynamism of streaming revenues emerges over time."
Apple gains after iPad event
While Disney was the worst Dow Jones stock today, Apple (AAPL, +0.4%) found itself on the plus side of the ledger following its "Let Loose" event.
It was the first time in two years the tech giant launched new versions of its iPad, with Apple also unveiling a new iteration of its Apple Pencil Pro and debuting its AI-enhanced M4 chip.
CFRA Research analyst Angelo Zino reiterated a Buy rating on the Magnificent 7 stock Tuesday. "After a major iPad drought (last refresh in 2022), we think these upgrades, along with better Pro price points, will help drive a return to growth for the category (down five straight quarters, with year-over-year declines in nine of last 10)," Zino wrote in a note.
As for the major indexes, the Nasdaq Composite fell 0.1% to 16,332, while the S&P 500 (+0.1% at 5,187) and the Dow Jones Industrial Average (+0.1% at 38,884) eked out modest gains.
Related content
- Kiplinger's Economic Calendar for This Week
- Datadog Earnings Overshadowed By Leadership Shift: What To Know
- If You'd Put $1,000 Into Disney Stock 20 Years Ago, Here's What You'd Have Today
-
What's Next for Stocks After a Chaotic SpringA chaotic tariff policy buffets investors looking for clarity on the economy and inflation.
-
Think a Repeal of the Estate Tax Wouldn't Affect You? WrongThe wording of any law that repeals or otherwise changes the federal estate tax could have an impact on all of us. Here's what you need to know, courtesy of an estate planning and tax attorney.
-
In Your 50s? We Need to Talk About Long-Term CareMany people don't like thinking about long-term care, but most people will need it. This financial professional recommends planning for these costs as early as possible to avoid stress later.
-
Where to Invest in an Uncertain MarketIn an uncertain market, you can still pocket juicy payouts ranging from 4% to 14%, depending on risk.
-
My First $1 Million: Events Industry CEO, 65, Northern New JerseyEver wonder how someone who's made a million dollars or more did it? Kiplinger's My First $1 Million series uncovers the answers.
-
Social Security Pop Quiz: Are You Among the 89% of Americans Who'd Fail?Shockingly few people have any clue what their Social Security benefits could be. This financial adviser notes it's essential to understand that info and when it might be best to access your benefits.
-
Stock Market Today: Investors Look on the Bright SideA generally good week closes on another positive note, as investors, traders and speculators look for fresh catalysts.
-
My Three-Day Rule for Investing: And If it Applies NowStock Market I've seen a lot in my career. Here's what I see now in the stock market.
