Stocks to Monitor on Monday: Hain Celestial, Dave & Buster's Entertainment, and 3 Others
Earnings Reports: Hain Celestial Group is expected to report quarterly earnings of 3 cents per share, while analysts predict High Tide Inc. will post a loss of 1 cent per share, with both companies releasing their earnings today.
Merger Announcement: MBody AI and Check Cap Ltd. have entered into a merger agreement, resulting in a significant 206.3% increase in Check-Cap shares during after-hours trading.
Stock Movements: Multi Ways Holdings Ltd. saw a 17.8% drop in shares after announcing a direct offering, while Dave & Buster’s Entertainment shares gained 0.3% ahead of their earnings report.
Market Overview: U.S. stock futures are slightly higher, with various companies experiencing notable after-hours trading movements, reflecting investor interest in upcoming earnings and corporate actions.
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- Dow Hits All-Time High: The Dow Jones Industrial Average rose by 0.64%, reaching a new all-time high, reflecting investor confidence in economic recovery, despite mixed overall market performance indicating divergent views among investors on various sectors.
- Chip Stocks Decline: With Marvell Technology and Intel falling over 9% and 8% respectively, the weakness in chipmakers weighed on the broader market, suggesting that the pressure on tech stocks may impact future investment sentiment.
- Weak Housing Data: U.S. May housing starts fell 15.4% month-over-month to a six-year low of 1.177 million, below expectations of 1.430 million, indicating that the weakness in the housing market could pose challenges to economic growth.
- Oil Prices Plummet: WTI crude oil prices dropped more than 5% to a 3.5-month low due to the U.S.-Iran agreement to reopen the Strait of Hormuz, enhancing expectations for a revival in oil supplies, which may affect the performance of energy stocks.
- Market Divergence: The S&P 500 Index fell by 0.18% and the Nasdaq 100 Index dropped by 0.83%, while the Dow Jones Industrial Average rose by 0.69% to a new all-time high, indicating a divergence in market performance, particularly as energy stocks are pressured by plunging crude oil prices.
- Weak Housing Data: US May housing starts fell by 15.4% month-over-month to a six-year low of 1.177 million, significantly below the expected 1.430 million, while building permits also declined slightly, reflecting weakness in the real estate market that could negatively impact overall economic growth.
- Oil Price Impact on Sentiment: WTI crude oil prices dropped over 3% to a 3.25-month low due to the US-Iran agreement to reopen the Strait of Hormuz, which has eased inflation expectations; while this provides short-term support for stocks, the long-term effects remain to be seen.
- Fed Meeting Focus: The market is turning its attention to the two-day FOMC meeting, where rates are expected to remain unchanged, but the press conference led by new Chair Kevin Warsh will be crucial, as investors will look for insights on future inflation outlook and policy direction.
- Sales Decline: Dave & Buster's reported a 5.4% drop in comparable store sales for Q1, leading to a 1.5% revenue decline and significant profit erosion, indicating challenges in customer attraction.
- Rating Downgrade: Benchmark downgraded the stock from Buy to Hold, citing deteriorating management credibility and the difficulty in developing innovative content to drive traffic, which has negatively impacted market confidence.
- Macro Impact: Management attributed the soft sales to a macro-related slowdown during spring break and an unsuccessful 'Dollar Day' promotion, with Benchmark estimating that around 50% of the shortfall was due to a decline in average check, highlighting ineffective entertainment promotions.
- Poor Stock Performance: Since the beginning of the year, shares of Dave & Buster's have lost 27% in value, contrasting sharply with a 7% gain in the industry index and a 10% gain in the S&P 500, reflecting a lack of market confidence in its future performance.
- Rackspace and AMD Partnership: Rackspace announced a collaboration to deploy 30 megawatts of AMD computing capacity across its data centers, resulting in a 9% stock price increase for Rackspace while AMD shares fell 4%, indicating mixed market reactions to the partnership.
- Mobileye's Autonomous Ride-Hailing: Mobileye plans to launch an autonomous ride-hailing service in a U.S. city by 2027, with shares rising nearly 3%, suggesting that this new initiative could significantly enhance its market share and brand presence in the driver-assist technology sector.
- Southwest Airlines Stock Surge: Southwest Airlines shares rose almost 4% after Jefferies raised its price target from $37 to $44, although the new target still indicates a 4.5% downside from Monday's close, reflecting optimistic sentiment regarding the airline industry's recovery.
- Gildan's Stock Plunge: Gildan's stock plummeted about 24% following a negative report from Jehoshaphat Research, which claimed the company's
- Mixed Market Performance: The S&P 500 Index rose by 0.11%, the Dow Jones Industrial Average increased by 0.57%, while the Nasdaq 100 Index fell by 0.18%, indicating a complex market sentiment particularly influenced by the pressure on energy stocks due to declining oil prices.
- Oil Price Impact: WTI crude oil prices dropped over 3% to a 3.25-month low, easing inflation expectations and providing support for stocks and bonds, reflecting a cautious market outlook on future economic growth.
- Weak Housing Data: US May housing starts fell by 15.4% month-over-month to a six-year low of 1.177 million, below the expected 1.430 million, indicating potential challenges for economic recovery stemming from a sluggish real estate market.
- FOMC Meeting Focus: Market attention shifts to the two-day FOMC meeting, where rates are expected to remain unchanged, but the press conference led by new Chair Kevin Warsh will be pivotal in shaping future monetary policy directions.
- Earnings Decline: Dave & Buster's reported lower earnings and sales for Q1, indicating challenges in the current economic environment that could impact investor confidence.
- Strategic Progress: Despite the disappointing results, the company's implemented strategies are beginning to gain market recognition, suggesting that efforts to adjust the business model are gradually paying off.
- Mixed Analyst Views: Analysts hold divergent opinions on the company's future performance, with some believing in its potential rebound while others express concerns about sustained growth, reflecting market uncertainty regarding its outlook.
- Cautious Market Reaction: Due to the earnings decline and mixed analyst opinions, investors are adopting a cautious stance towards Dave & Buster's stock performance, which may lead to increased volatility in the short term.











