General Motors and Ford Motor shares saw a modest rise of 1% each following President Donald Trump's announcement of a 30-day suspension on tariffs for Canadian imports. This move injected a sense of optimism into the automotive sector, providing a temporary reprieve from trade tensions. Meanwhile, Spotify's stock surged by 8% after the company reported faster-than-anticipated user growth in the fourth quarter, exceeding expectations for revenue and operating income.
Palantir Technologies experienced a remarkable 23% increase in its stock price. The company surpassed estimates on both the top and bottom lines for the fourth quarter and issued robust guidance for the full year, signaling confidence in its future performance. However, not all companies shared in the market's positive momentum.
Pfizer reported adjusted earnings of 63 cents per share on $17.76 billion in revenue. Despite this, its fourth-quarter revenue fell short of expectations, totaling $27.78 billion compared to the forecasted $27.89 billion. PepsiCo also faced challenges, with shares declining by 2% after missing revenue expectations for the fourth quarter.
Estee Lauder, on the other hand, reported a beat in fiscal second-quarter earnings and revenue. Despite this positive performance, the company projected a year-over-year revenue contraction between 10% and 12%, a more pessimistic outlook than analysts' expectations of a 6.9% decline. Diageo also reported lower-than-expected adjusted earnings of $c97.7 per share, prompting the removal of its medium-term guidance due to macroeconomic and geopolitical uncertainties.
Merck's shares fell by 8% in premarket trading after issuing full-year guidance that fell short of analyst expectations. The company's revenue projections of $64.1 billion to $65.6 billion were below what analysts had anticipated, reflecting challenges in meeting market forecasts.
PayPal experienced a 7.3% drop despite reporting an earnings and revenue beat in the fourth quarter, along with better-than-expected forward guidance. This decline highlights the market's cautious sentiment amid broader economic uncertainties.
In contrast, Ferrari reported strong earnings growth for 2024, with the luxury car manufacturer earning 1.53 billion euros for the full year—a 21% increase from 2023. This performance underscores Ferrari's resilience and ability to capture market share even amidst challenging conditions.
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