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
-
Why Uber Stock Is Volatile After GM's Cruise AnnouncementUber stock is swinging this week following news that General Motors is restructuring its Cruise unit. Here's what you need to know.
-
UnitedHealth Stock Falls as Lawmakers Eye Insurers, PBMsUnitedHealth stock is continuing to fall Thursday after the introduction of bipartisan legislation targeting PBMs and healthcare giants. Here's what to know.
-
Why Uber Stock Is Volatile After GM's Cruise Announcement
Uber stock is swinging this week following news that General Motors is restructuring its Cruise unit. Here's what you need to know.
-
Why Adobe Stock Is Down After Its Earnings BeatAdobe stock is lower Thursday despite the tech giant beating expectations for its fiscal 2024 fourth quarter. Here's what you need to know.
-
Three Possible Tax Impacts for Retirees Under TrumpHow might a second Trump term affect your tax bill in retirement — or the inheritance tax bill for your heirs? This pro has three predictions.
-
What to Know About Leverage and Bitcoin's Meteoric RiseLeverage in the financial world can lead to astonishing success or a crushing collapse. How are investors using leverage to invest in bitcoin?
-
How Do You Know When It's Time to Change Financial Advisers?Sometimes a breakup is for the best. Here's how to handle 'the talk' and make the switch to a new professional who's a better fit for you.
-
Stock Market Today: Tech Stocks Rally as CPI Supports Lower RatesAn inline inflation report sealed the deal for a December rate cut and sent the tech sector soaring.
-
CPI Report Casts Doubt on Rate Cuts in 2025: What the Experts Are Saying About InflationCPI November Consumer Price Index data sealed the deal for a December rate cut, but the outlook for next year is less certain.
-
The Best Utility Stocks to BuyUtility stocks are defensive plays for investors, offering stability and reliable dividends. Here, we look at how you can find the best ones to buy.
