Hot Stocks: M surges on earnings; BABA, BIDU drive Chinese stocks; NTNX, SNOW fall; PLAB sets high

May 26, 2022 5:43 PM ETBaidu, Inc. (BIDU), BABAM, JD, PDD, NTES, PLAB, NTNX, SNOWBy: Brian Stewart, SA News Editor1 Comment

Financial stock market graph. Selective focus.

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A rebound in the retail sector, prompted in part by earnings news from well-known low-cost retailers, helped drive notable gains on Wall Street during Thursday's session. The Nasdaq led the advance, climbing by 2.7%, while the Dow rose more than 500 points.

Within the retail sector, Macy's (M) was another notable winner. Inspired by earnings news, shares of the department store chain posted a double-digit percentage gain, adding to a rebound that started during the previous session.

Chinese tech stocks also contributed to the overall upswing. Strong earnings from Baidu (NASDAQ:BIDU) and Alibaba (NYSE:BABA) spurred gains in names like JD.com (JD), Pinduoduo (PDD) and NetEase (NTES).

Photronics (PLAB) ranked among the notable gainers as well, with financial figures driving the stock to a 52-week high.

On the other side of the spectrum, Nutanix (NTNX) lost nearly a quarter of its value on a weak forecast included in its latest quarterly update. At the same time, earnings news sent Snowflake (SNOW) to a new 52-week low.

Sector In Focus

Standout earnings reports from two of the sector's biggest players prompted an advance in Chinese tech stocks.

The buying interest came after Baidu (BIDU) surged 14% on its quarterly results. Alibaba (BABA) had a similar story, finishing 15% higher after releasing its own strong report.

Looking at other high-profile names in the group, JD.com (JD) climbed about 5%. Pinduoduo (PDD) advanced 9%, while NetEase (NTES) recorded a 4% climb.

Standout Gainer

Continuing a rebound that marked the previous session, Macy's (M) soared 19%. The gains were prompted by a better-than-expected earnings report.

The department store chain revealed results that topped expectations on both the top and bottom lines. Revenue rose 14% to $5.35B, with comparable sales that increased almost 13%.

M also raised its 2022 earnings forecast, saying it now expected an adjusted EPS figure of $4.53 to $4.95. The firm had previously projected an EPS result between $4.13 and $4.52. Analysts were looking for $4.34.

Boosted by the earnings news, M climbed $3.71 to finish at $22.92.

Worries about inflation and the general health of the consumer spurred a massive decline in the retailing sector for most of May. Caught up in this retreat, M dropped to a 2022 low of $16.96 earlier this week, before bouncing 9% during Wednesday's session.

Even with its recent recovery, M remains 7% lower over the past month. Shares have fallen 16% so far in 2022.

Standout Loser

Nutanix (NTNX) experienced a massive selling spree following the release of its quarterly results. Shares of the cloud computing company dropped 23% after its earnings report included a disappointing forecast.

The firm topped expectations with its Q3 financial figures, reporting a narrower-than-projected loss and revenue that rose 17% from last year. However, NTNX unveiled targets for its Q4 that came in below what analysts were predicting.

The company forecast revenue between $340M and $360M. Wall Street experts were looking for a figure around $364M.

NTNX finished Thursday's trading at $16.50, a decline of $4.92 on the day. The stock also reached a 52-week low of $13.51.

With the retreat, shares dropped below a recent trading range, extending downward pressure seen in early May. NTNX has dropped about 34% in the past month and has fallen 52% in the past six months.

Notable New High

Photronics (PLAB) surged to a 52-week high following the release of Street-beating quarterly results. Shares jumped 12% during the session.

The semiconductor photomask manufacturer reported a quarterly profit that exceeded analysts' consensus by 40%. Revenue jumped 28% from last year, climbing to $204.5M.

The firm also issued a strong Q3 forecast. PLAB predicted revenue between $205M and $215M, compared to the approximately $196M that Wall Street experts were targeting.

PLAB jumped $2.20 to finish at $20.06. During the session, the stock reached an intraday 52-week high of $20.56.

Prior to the earnings report, shares had been bouncing around in range near a 2022 closing low of $14.51, which they reached in the first half of April.

Notable New Low

A disappointing quarterly report prompted a decline in Snowflake (SNOW), sending the stock to a new 52-week low. While shares cut their losses before the close, SNOW still ended lower by 5%.

The data warehousing company reported a wider-than-expected loss for Q1. While revenue surged 85% for the quarter, analysts worried about slowing growth in the future.

Following the results, SNOW plummeted to an intraday 52-week low of $112.10. Shares rebounded from there, flirting with positive territory in the middle of the day. By the close, though, the stock finished lower by $6.07, ending the day at $126.80.

Thursday's retreat added to a long-term downtrend for the stock. SNOW has fallen about 65% in the past six months.

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