U.S. Stocks to Watch: Broadcom, Chinese ADRs, Marvell, Costco, Intuitive Machines, Gap, Walgreens, and More

Dow Jones
03-07

Stock futures were rising Friday ahead of the release of the monthly U.S. jobs report following a Wall Street selloff that had investors rattled by frequent shifts in trade policy from the Trump administration. The tech-heavy Nasdaq Composite finished Thursday in correction territory.

These stocks were poised to make moves Friday:

Chinese ADRs mixed in premarket trading Friday, as optimism grew that China would take more steps to support the nation’s economic growth and technology innovation. Direxion Daily FTSE China Bull 3X Shares rose 3%; XPeng Inc. rose 4%; Alibaba rose 2.5%; JD.com fell 1.6%.

Broadcom rose 13% after the semiconductor and software posted better-than-expected fiscal first-quarter earnings and issued strong guidance. Broadcom reported adjusted earnings in the first quarter of $1.60 a share, higher than analysts' expectations of $1.51. Revenue of $14.92 topped consensus of $14.62 billion. Artificial-intelligence revenue in the quarter was $4.1 billion, up 77% from a year earlier. For the current second quarter, Broadcom anticipates revenue of $14.9 billion compared with expectations of $14.71 billion. CEO Hock Tan said Broadcom's largest technology customers continue to "invest aggressively" in their next generation AI models.

Hewlett Packard Enterprise sank 21% after fiscal first-quarter earnings and second-quarter guidance missed Wall Street expectations and the server and cloud-software company said it would begin a cost-cutting program that will reduce its overall headcount by about 5%, or about 2,500 jobs. HPE said it expects second-quarter adjusted earnings of 28 cents to 34 cents a share on revenue of $7.2 billion to $7.6 billion. Analysts expect adjusted earnings of 50 cents on revenue of $7.92 billion. As for the tariffs situation, CEO Antonio Neri told Barron's that it was a "very fluid, complicated situation, with a lot of moving parts and twists." The CEO said HPE does a lot of manufacturing in Mexico.

Marvell Technology was up 1.6% in premarket trading after the chip maker sank nearly 20% on Thursday, the stock's largest percentage decrease since Sept. 27, 2001, when it fell 32%, according to Dow Jones Market Data. On Wednesday, Marvell issued fiscal first-quarter guidance that was mostly in line with expectations, disappointing investors who had thought the company might offer even more positive forecasts.

Gap, Inc was jumping 18% after the apparel retailer topped fourth-quarter earnings expectations and delivered stronger-than-expected profit guidance for the current fiscal year. Gap sees total company sales in the fiscal year rising between 1% to 2% versus Wall Street expectations of a 1.7% increase to $15.7 billion. The retailer projects an increase in operating income of between 8% and 10% from $1.1 billion in 2024.

Walgreens Boots Alliance will be taken private by Sycamore Partners in a $23.7 billion deal. Sycamore will pay $11.45 a share in cash, representing an equity value of around $10 billion. Shareholders also will receive up to $3 in cash per share representing the future sale of the company's debt and equity interests in VillageMD. The companies expect the deal to close in the fourth quarter. Walgreens rose 5.5% to $11.18 in premarket trading.

Fiscal second-quarter earnings at Costco, the warehouse retailer, missed analysts' estimates, sending shares down 1.7% in premarket trading. Costco reported earnings of $4.02 a share, below estimates of $4.09, as revenue of $63.7 billion was slightly better than projections of $63.1 billion. Same-store sales rose 6.8% and beat estimates that called for a 6.4% increase.

Intuitive Machines was tumbling 34% after difficulties landing the company's Athena spaceship near the moon's south pole on Thursday. The craft touched down around noon Eastern time, but NASA's broadcast of the landing finished without clear information on the status of the craft.

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