Dow Jones Today: Futures Point to Lower Open as Nvidia, Other Tech Stocks Remain Under Pressure

Health Insurers Tumble on Medicaid Enrollment Concerns

2 hr 32 min ago

Shares of health insurers lost ground Wednesday as executives at Centene (CNC) warned about a pullback in the number of people receiving Medicaid benefits.

Centene Chief Executive Officer (CEO) Sarah London told the Wells Fargo 2024 Healthcare Conference in Everett, Mass., that the company is “still seeing pressure in Medicaid, largely driven by the unprecedented redeterminations process,” referring to how recipient eligibility is determined.

Chief Financial Officer (CFO) Drew Asher said Centene expects its Medicaid membership to be about 12.9 million to 13.0 million in 2024. That’s down from the company’s previous estimate of a low of 13.2 million, which it anticipated would climb to 13.6 million by the end of the year. 

Shares of Centene and rivals Molina Healthcare (MOH) and Elevance (ELV) were among the biggest decliners in the S&P 500 today.

–Bill McColl

Intel Shares Continue Sliding

4 hr 37 min ago

Intel (INTC) shares extended their losses Wednesday amid a stretch of bad news, as Reuters reported that recent tests of the chip giant’s most advanced manufacturing process conducted by Broadcom (AVGO) failed.

Silicon wafers, which chips are printed on, reportedly were returned to Broadcom last month after they were run through Intel’s 18A manufacturing process. A review by Broadcom engineers found that the process isn’t ready to be used for high-volume production, Reuters said.

While many chip stocks have surged amid AI demand, Intel shares have lost about 60% of their value since the start of 2024. The stock was down 2% in early-afternoon trading Wednesday.

Those struggles have accelerated over the last month, with a disappointing earnings report and the announcement that it would lay off about 15% of its employees as part of a larger cost-cutting plan. The earnings report sent shares 26% lower the day after it was released, to their lowest point in over a decade.

The earnings-related fall was followed by reports that concerns have emerged over the company’s planned construction of two new facilities in Germany. On Tuesday, shares were driven lower by a report that executives are preparing to present plans to cut costs and sell assets amid the company’s struggles, and concerns that Intel could potentially face removal from the Dow.

–Aaron McDade

GitLab Soars as Outlook Boosted Amid AI Demand

5 hr 54 min ago

GitLab (GTLB) shares soared Wednesday, a day after it posted better-than-expected results and raised its guidance, becoming the latest tech firm to benefit from the soaring demand for artificial intelligence (AI) products.

The software-development provider reported fiscal 2025 second-quarter adjusted earnings per share (EPS) of $0.15, with revenue jumping 31% year-over-year to $182.6 million.

The number of customers with annual recurring revenue (ARR) of more than $5,000 increased 19% to 9,314, and those with ARR of more than $100,000 rose 33% to 1,076.

GitLab now sees full-year adjusted EPS in the range of $0.45 to $0.47, compared with its earlier forecast of $0.34 to $0.37. It anticipates revenue between $742.0 million and $744.0 million, up from the previous $733.0 million to $737.0 million.

GitLab shares were up 19% in recent trading. Despite the surge Wednesday, the stock is still down nearly 16% since the start of 2024.

–Bill McColl

Dollar Tree Tumbles Amid ‘Immense Pressures’

7 hr 48 min ago

Dollar Tree (DLTR) shares tumbled early Wednesday after the discount retailer reported another earnings miss and said it is facing “immense pressures from a challenging macro environment.”

The retailer posted $132.4 million in net income for the second quarter of fiscal 2024, down from $200.4 million last year and well below analysts’ estimates. Revenue rose slightly to $7.38 billion but was still below expectations.

The retailer also lowered sales and profit projections for fiscal 2024, expecting revenue from $30.6 billion to $30.9 billion, down from $31.0 billion to $32.0 billion previously. Adjusted earnings per share are now expected to be within a range of $5.20 to $5.60, compared with $6.50 to $7.00 previously.

Wednesday’s results are another disappointment for Dollar Tree, which reported earnings below estimates in the two previous quarters. In its Q1 report, the company said it was exploring “strategic alternatives” including selling or spinning off the Family Dollar brand roughly a decade after acquiring it, while in the prior quarter Dollar Tree said it planned to close about 1,000 stores.

Dollar Tree shares were down 17% to a seven-year low in recent trading.

–Aaron McDade

Zscaler Plunges on Disappointing Outlook

8 hr 43 min ago

Shares in Zscaler (ZS) were down 17% in premarket trading Wednesday after the provider of cloud-based cybersecurity services issued earnings guidance that came in significantly below analysts’ expectations.

Two rallies in the stock up to the 200-day moving average in July and August have been met with considerable resistance, indicating underlying selling pressure.

Amid earnings-driven weakness, investors should monitor key chart levels at $164, $143, and $135.

Read our full technical analysis piece here.

–Timothy Smith

Major Indexes Pointing to Another Lower Open

9 hr 34 min ago

Futures tied to the Dow Jones Industrial Average were down 0.1%.

S&P 500 futures were down 0.3%.

Nasdaq 100 futures were off 0.7%.