Adobe reported a fiscal second-quarter non-GAAP operating margin of 44%, which was below the expected 44.5%, leading to a 6.8% drop in its stock. Despite this, the company exceeded expectations on both revenue and earnings. Additionally, CFO Dan Dunn will leave the company on June 15 for a new opportunity.
Lennar's stock fell 0.7% after its second-quarter revenue of $7.94 billion missed the $8.02 billion forecast, although its earnings per share of $1.24 met expectations. In contrast, AMD's stock rose more than 1% after Citi upgraded it to a buy rating, suggesting that AMD could capture market share from Nvidia in the graphics processing unit sector.
Space stocks saw a broad increase as traders anticipated SpaceX's public market debut, with Rocket Lab rising over 6% and Virgin Galactic and AST SpaceMobile each gaining 4%. Energy stocks, however, faced a decline as oil prices fell amid hopes for a U.S.-Iran deal, with the State Street Energy Select Sector SPDR ETF (XLE) dropping 0.7%.
Companies like OneOK and Williams led this decline, each falling more than 3%. Conversely, travel stocks benefited from the drop in oil prices, with United Airlines and Delta both advancing by 1%, and cruise operators Carnival and Royal Caribbean gaining 1.5% and 2.3%, respectively.
RH guided for current-quarter revenue growth of 0.5% to 2.5%, below the 4.3% expected by analysts, although its shares rose slightly after reporting a narrower-than-expected adjusted loss and a revenue beat in the last quarter