The stock market is on track for its worst week in a year.
At last check on Friday, the S&P 500 fell 1.8%, the tech-focused Nasdaq Composite was down 2.7%, the Dow Jones Industrial Average declined 1%, and the Russell 2000 Index fell 1.6%.
The decline followed a worse-than-expected nonfarm-payrolls report. Total nonfarm payroll employment increased by 142,000 in August, up from 89,000 in July but short of the 164,000 expected by economists.
Trending stocks:
All Magnificent 7 stocks are down midday. Apple dropped 0.9%, while others in the group gave up more than 3%. Tesla is posting the biggest decline among the seven, down 7%.
Broadcom fell on weak guidance, while Super Micro dropped on an analyst downgrade.
Broadcom forecasted $14 billion in revenue for its fiscal fourth quarter, falling short of the $14.04 billion expected by analysts.
Shutterstock-T. Schneider
S&P 500 big stock movers today
Five S&P 500 stocks making big midday moves are:
Dollar General (DG) +2.6% Pulte Group (PHM) +2.2% Chipotle Mexican Grill (CMG) +2.0% D.R. Horton (DHI) +1.9% Hormel Foods (HRL) +1.7%
The worst-performing five S&P 500 stocks with the largest midday drops are:
Broadcom (AVGO) -9.6% Albemarle (ALB) -7.6% Tesla (TSLA) -7.1% Super Micro Computer (SMCI) -6.2% Wells Fargo (WFC) -5.1%
Stocks also worth noting include:
Nvidia (NVDA) -4.8%Amazon (AMZN) -3.2%Apple (AAPL) -0.9%Nio (NIO) +3.8%Bowlero (BOWL) +7.8%
Bowlero pops on revenue beat
Bowlero stock gained 8% after the company posted higher revenue for its fiscal fourth quarter and estimated higher revenue for fiscal 2025.
For the fiscal 2024 fourth quarter ended June 30, the bowling-center operator swung to a net loss of $62.2 million from net income of $146.2 million in the year-earlier quarter. Revenue increased 18.6% from the year-earlier period to $283.9 million. That beat analysts’ consensus estimate of $273.4 million. Same-store revenue increased 6.9% to $242.5 million.
For all of fiscal 2024, Bowlero posted a net loss of $83.6 million, compared with year-earlier net income of $82 million. Revenue increased 9.1% to $1.15 billion.
Bowlero expects total revenue for fiscal 2025 to grow in a range of mid-single digits percent to more than 10% from fiscal 2024. That translates to between $1.22 billion and $1.28 billion. The upper end of this revenue forecast exceeds current estimates.
Broadcom falls despite earnings beat
Broadcom lost 9% after the company reported fiscal-third-quarter results that beat analysts’ expectations for revenue and earnings while posting weaker-than-expected revenue guidance.
For the quarter ended Aug. 4, the company reported adjusted earnings of $1.24 per share, higher than the $1.20 analysts had estimated. Revenue of $13.07 billion also beat the $12.97 billion forecast.
“Broadcom’s third quarter results reflect continued strength in our AI semiconductor solutions and VMware. We expect revenue from AI to be $12 billion for the fiscal year 2024 driven by Ethernet networking and custom accelerators for AI data centers,” said Hock Tan, chief executive of Broadcom.
Broadcom forecast $14 billion in revenue for its fiscal fourth quarter, just short of the $14.04 billion analysts expected.
Super Micro Computer slides on JP Morgan downgrade
Super Micro Computer dropped 6% following JP Morgan’s downgrade to neutral from overweight. The investment firm now has a price target of $500, down from $950.
JPMorgan says the downgrade is based on the short-term perspective that there is no compelling reason for new investors to buy the shares while uncertainty about regaining regulatory compliance remains, according to a note from The Fly.
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JP Morgan is waiting for a further response from Super Micro to reassure that customers will not divert orders, “which could involve aggressive pricing,” the analyst said.
Related: Veteran fund manager sees world of pain coming for stocks
