In midday trading, shares of companies in the data center infrastructure sector fell as investors expressed concerns over hyperscaler spending on artificial intelligence, with Corning down 3% and both Coherent and Lumentum dropping around 7%. Tesla's stock declined over 3%, marking a nearly 19% drop for the week, largely due to increased spending on AI.
Conversely, Booz Allen Hamilton's shares surged 12% after reporting fiscal first-quarter earnings of $1.81 per share, exceeding the $1.48 consensus. Digital Realty Trust saw a 15% increase following strong earnings and revenue beats, prompting an upward revision of its full-year guidance. Travel stocks rose as oil prices fell, with Carnival and Norwegian cruise lines both gaining over 5%. C.H.
Robinson's shares plummeted 8% after a jury awarded $604 million in damages related to a trucking accident, which the company plans to appeal. Software stocks performed well, with the iShares Expanded Tech-Software Sector ETF rising 1%, driven by gains in Adobe and ServiceNow.
Intel's stock fell 4% despite reporting its highest quarterly revenue growth in nearly 15 years, while Robert Half's shares dropped almost 6% after mixed second-quarter results. MaxLinear's shares tumbled 20% despite better-than-expected earnings, and Boston Beer added 2% after narrowly beating revenue expectations.
Tenet Healthcare's stock rose over 16% following strong earnings, while American Express dipped 5% after a revenue miss despite beating earnings expectations. SAP's shares increased 8% on strong cloud backlog growth, and SLB rose 10% after reporting a return to revenue growth.
Charter Communications fell about 3% due to disappointing EBITDA results, while Verizon rose 3% despite a mixed earnings report