Major Averages Close Lower as Investors Digest Fed Policy
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy FIVE?
The major averages closed lower as investors digested the Federal Reserve's policy decision yesterday and watched news coming out of the Middle East. The Fed left interest rates unchanged, as expected, but signaled a more patient approach toward easing, reflecting concern that recent volatility in energy prices could keep inflation elevated in the near term.Meanwhile, volatility eased across asset classes as oil's early surge petered out, with stocks and bonds bouncing after Israel said it's helping the U.S. open the Strait of Hormuz. WTI oil fell below $93 per barrel in post-settlement trading.Get caught up quickly on the top news and calls moving stocks with these five Top Five lists.1. STOCK NEWS:Micronreported, provided upbeat Q3 guidance, and raised its quarterly dividend 30%AlibabareportedFive Belowreportedand provided its outlook for Q1 and FY26Dardenreported, though consolidated SSS rose 4.2%Uberwillin Rivian2. WALL STREET CALLS:Micronto Hold from Buy at Summit InsightsFive Belowto Outperform from Market Perform at William BlairCarnivalto Overweight at Morgan StanleyKinsale Capitalto Underperform at JefferiesOppenheimerFreshworksamid challenging operating environment3. AROUND THE WEB:Metasaid over social media that it will keep Horizon Worlds working in VR for existing gamesFDA inspectors found Boston Scientificpacemakers had battery issues, NY Times reportsFederal safety regulators are intensifying scrutiny of Tesla'sFull Self-Driving system over concerns about its performance in poor roadway conditions, WSJ saysAppleis stopping "vibe coding" apps from pushing updates, citing rules on running code, The Information reportsEcolabnearing deal to buy CoolIT from KKRfor $4.5B-$5B, WSJ reports4. MOVERS:DLocalgains after announcing aand announcing Q4 resultsTwo Harborsincreases after receiving an unsolicitedScholar Rockhigher after Cantor said that GenentechRed Catlower after, with EPS higher year-over-yearCanadian Solarfalls in New York afterand providing guidance for FY265. EARNINGS/GUIDANCE:Intuitive Machines, with revenue missing consensusAebi Schmidtand provided guidance for FY26Aveanna, with CEO Jeff Shaner commenting, "The strength and momentum of all three operating divisions can be seen in our fourth quarter results as we complete the third year of our Strategic Transformation"Signet Jewelersand provided guidance for Q1 and FY27Accenture, with EPS and revenue beating consensusINDEXES:The Dow fell 203.72, or 0.44%, to 46,021.43, the Nasdaq lost 61.73, or 0.28%, to 22,090.69, and the S&P 500 declined 18.21, or 0.27%, to 6,606.49.
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Analyst Views on FIVE
Wall Street analysts forecast FIVE stock price to fall
19 Analyst Rating
11 Buy
7 Hold
1 Sell
Moderate Buy
Current: 235.170
Low
132.00
Averages
193.47
High
242.00
Current: 235.170
Low
132.00
Averages
193.47
High
242.00
About FIVE
Five Below, Inc. is a specialty value retailer offering merchandise targeted at the tween and teen demographics. Its assortment of products, including select brands and licensed merchandise. It is engaged in offering a group of products, including leisure, fashion and home, and snacks and seasonal. Leisure includes items such as sporting goods, games, toys, tech, books, electronic accessories, arts and crafts, and party. Fashion and home include items, such as personal accessories, attitude t-shirts, beauty offerings, home goods and storage options. Snack and seasonal include items, such as seasonal goods, greeting cards, candy and other snacks, and beverages. It also offers its merchandise on the Internet, through its fivebelow.com e-commerce Website, offering home delivery and the option to buy online and pick up in store. It also sells its merchandise through on-demand third-party delivery services to enable its customers to shop online and receive convenient delivery.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Five Below Surpasses Expectations with Q4 Results
- Significant Sales Growth: Five Below's sales surged 24.3% to $1.73 billion in its fiscal Q4 ending January 31, exceeding market expectations and demonstrating strong performance in the competitive discount retail sector.
- Ongoing Store Expansion: The retailer opened a net of 14 new stores in the quarter, totaling 150 openings over the past 12 months, bringing its total to 1,921 locations across 46 states, further solidifying its market position.
- Improved Profitability: Five Below's adjusted net income rose 24.5% to $239.6 million, with earnings per share at $4.31, surpassing Wall Street's estimate of $4, reflecting effective cost control and profitability strategies.
- Optimistic Future Outlook: Management projects sales to rise to approximately $5.25 billion in fiscal 2026, up from $4.76 billion in 2025, driven by 150 new store openings and comparable sales growth of 3% to 5%, indicating strong confidence in future growth.
See More
Five Below Reports Strong Sales Growth and Plans 150 Store Openings
- Significant Sales Growth: Five Below's sales surged to $1.73 billion in fiscal Q4 2023, reflecting a 24.3% increase, demonstrating the strong appeal of its low-priced merchandise amid rising economic pressures on consumers.
- Store Expansion Plans: Management plans to open an additional 150 stores by 2026, projecting sales to reach approximately $5.25 billion in fiscal 2026, up from $4.76 billion in 2025, further solidifying its market position.
- Improved Profitability: Adjusted net income rose 24.5% to $239.6 million, with earnings per share at $4.31, surpassing Wall Street expectations, indicating success in cost control and sales growth strategies.
- Optimistic Future Outlook: Management anticipates full-year earnings per share to rise to between $7.74 and $8.25 in 2026, reflecting confidence in sustainable sales growth and long-term shareholder value through ongoing expansion and enhanced customer value propositions.
See More
Micron Technology and FedEx Report Strong Quarterly Results Amid Market Turbulence
- Micron's Earnings Surge: Micron Technology's Q2 sales nearly tripled year-over-year to $23.86 billion, primarily driven by explosive demand for high-bandwidth memory products, showcasing the company's strong execution and profitability in the AI-related market.
- Earnings Beat Expectations: Micron reported an EPS of $12.20, exceeding expectations of $8.80 by 38.64%, and significantly up from $1.56 a year ago, reflecting the company's robust performance in the memory cycle and sustained market demand.
- FedEx's Strong Results: FedEx's Q3 EPS of $5.25 surpassed expectations of $4.14 by 26.81%, while raising its full-year EPS outlook to $19.30-$20.10, indicating ongoing improvements in operational efficiency and package demand.
- Optimistic Market Outlook: Micron expects Q3 sales to reach $33.5 billion, well above the market's forecast of $22.79 billion, highlighting the company's strong growth potential in the memory market, while FedEx is also on track to approach $100 billion in annual sales.
See More
U.S. Stock Futures Down as Dell Gains from Super Micro Fallout
- Market Volatility Intensifies: U.S. stock futures are down this morning as oil prices rebound, with the S&P 500 and Dow down 0.4% and 1.2%, respectively, and the Nasdaq Composite off by 0.1%, indicating a potential fourth consecutive week of losses, while the quadruple witching event could add volatility to the market.
- Dell's Significant Gains: Dell's stock rose approximately 4% as a result of the fallout from the Super Micro Computer investigation, where employees were charged with smuggling Nvidia chips to China, leading to a more than 26% drop in Super Micro's shares, highlighting Dell's competitive advantage in the market.
- FedEx's Enhanced Earnings Power: FedEx's restructuring is showing significant results, with shares jumping 9% despite the overall market decline, reflecting strong performance in its pharmaceutical and data center businesses, superb supply chain management, and an on-time freight spinoff.
- Alibaba's Price Target Cut: Mizuho lowered Alibaba's price target from $195 to $190 while maintaining a buy rating, citing soft demand and investments in AI, as Alibaba launches its own version of the OpenClaw AI platform, demonstrating its commitment to technological innovation.
See More
Tractor Supply Reports Earnings Miss, Guidance Cautious
- Earnings Performance: Tractor Supply reported Q4 EPS of $0.43, missing the $0.46 consensus, with revenue of $3.90 billion also falling short, indicating vulnerability amid shifting consumer behavior.
- Weak Sales Growth: While essential categories like livestock and pet supplies showed low to mid-single-digit growth, comparable sales rose only 0.3%, reflecting a significant decline in consumer spending on big-ticket items, impacting overall performance.
- Cautious Future Outlook: The company issued FY26 guidance with EPS expectations between $2.13 and $2.32 and revenue growth of only 4% to 6%, both below market expectations, suggesting pressure on future growth.
- Estimate Downgrades: Analysts have lowered earnings estimates across all time frames, with current quarter estimates dropping from $0.38 to $0.35, an 8% decrease, highlighting market concerns about the company's outlook.
See More
Global Markets Decline Amid Inflation Concerns
- Market Decline: On Thursday, the S&P 500 fell by 0.27%, the Dow Jones Industrial Average by 0.44%, and the Nasdaq 100 by 0.29%, indicating a broad market decline driven by inflation concerns and investor pessimism.
- Energy Price Volatility: Crude oil prices experienced significant fluctuations as WTI initially rallied before retreating after Israel's assistance to the US in opening the Strait of Hormuz, highlighting the direct impact of geopolitical tensions on energy markets.
- Rising Bond Yields: The 10-year German Bund yield rose to a 2.25-year high of 3.01%, while the 10-year US Treasury yield reached a 6.75-month high of 4.32%, reflecting market expectations of potential tightening monetary policies by central banks, which could increase borrowing costs.
- Economic Data Impact: US weekly initial jobless claims unexpectedly fell to 205,000, indicating a strong labor market, while the Philadelphia Fed business outlook survey unexpectedly rose to a 6-month high of 18.1, further intensifying market concerns over potential interest rate hikes.
See More
Five Below Surpasses Expectations with Q4 Results
- Significant Sales Growth: Five Below's sales surged 24.3% to $1.73 billion in its fiscal Q4 ending January 31, exceeding market expectations and demonstrating strong performance in the competitive discount retail sector.
- Ongoing Store Expansion: The retailer opened a net of 14 new stores in the quarter, totaling 150 openings over the past 12 months, bringing its total to 1,921 locations across 46 states, further solidifying its market position.
- Improved Profitability: Five Below's adjusted net income rose 24.5% to $239.6 million, with earnings per share at $4.31, surpassing Wall Street's estimate of $4, reflecting effective cost control and profitability strategies.
- Optimistic Future Outlook: Management projects sales to rise to approximately $5.25 billion in fiscal 2026, up from $4.76 billion in 2025, driven by 150 new store openings and comparable sales growth of 3% to 5%, indicating strong confidence in future growth.
See More
Five Below Reports Strong Sales Growth and Plans 150 Store Openings
- Significant Sales Growth: Five Below's sales surged to $1.73 billion in fiscal Q4 2023, reflecting a 24.3% increase, demonstrating the strong appeal of its low-priced merchandise amid rising economic pressures on consumers.
- Store Expansion Plans: Management plans to open an additional 150 stores by 2026, projecting sales to reach approximately $5.25 billion in fiscal 2026, up from $4.76 billion in 2025, further solidifying its market position.
- Improved Profitability: Adjusted net income rose 24.5% to $239.6 million, with earnings per share at $4.31, surpassing Wall Street expectations, indicating success in cost control and sales growth strategies.
- Optimistic Future Outlook: Management anticipates full-year earnings per share to rise to between $7.74 and $8.25 in 2026, reflecting confidence in sustainable sales growth and long-term shareholder value through ongoing expansion and enhanced customer value propositions.
See More
Micron Technology and FedEx Report Strong Quarterly Results Amid Market Turbulence
- Micron's Earnings Surge: Micron Technology's Q2 sales nearly tripled year-over-year to $23.86 billion, primarily driven by explosive demand for high-bandwidth memory products, showcasing the company's strong execution and profitability in the AI-related market.
- Earnings Beat Expectations: Micron reported an EPS of $12.20, exceeding expectations of $8.80 by 38.64%, and significantly up from $1.56 a year ago, reflecting the company's robust performance in the memory cycle and sustained market demand.
- FedEx's Strong Results: FedEx's Q3 EPS of $5.25 surpassed expectations of $4.14 by 26.81%, while raising its full-year EPS outlook to $19.30-$20.10, indicating ongoing improvements in operational efficiency and package demand.
- Optimistic Market Outlook: Micron expects Q3 sales to reach $33.5 billion, well above the market's forecast of $22.79 billion, highlighting the company's strong growth potential in the memory market, while FedEx is also on track to approach $100 billion in annual sales.
See More
U.S. Stock Futures Down as Dell Gains from Super Micro Fallout
- Market Volatility Intensifies: U.S. stock futures are down this morning as oil prices rebound, with the S&P 500 and Dow down 0.4% and 1.2%, respectively, and the Nasdaq Composite off by 0.1%, indicating a potential fourth consecutive week of losses, while the quadruple witching event could add volatility to the market.
- Dell's Significant Gains: Dell's stock rose approximately 4% as a result of the fallout from the Super Micro Computer investigation, where employees were charged with smuggling Nvidia chips to China, leading to a more than 26% drop in Super Micro's shares, highlighting Dell's competitive advantage in the market.
- FedEx's Enhanced Earnings Power: FedEx's restructuring is showing significant results, with shares jumping 9% despite the overall market decline, reflecting strong performance in its pharmaceutical and data center businesses, superb supply chain management, and an on-time freight spinoff.
- Alibaba's Price Target Cut: Mizuho lowered Alibaba's price target from $195 to $190 while maintaining a buy rating, citing soft demand and investments in AI, as Alibaba launches its own version of the OpenClaw AI platform, demonstrating its commitment to technological innovation.
See More
Tractor Supply Reports Earnings Miss, Guidance Cautious
- Earnings Performance: Tractor Supply reported Q4 EPS of $0.43, missing the $0.46 consensus, with revenue of $3.90 billion also falling short, indicating vulnerability amid shifting consumer behavior.
- Weak Sales Growth: While essential categories like livestock and pet supplies showed low to mid-single-digit growth, comparable sales rose only 0.3%, reflecting a significant decline in consumer spending on big-ticket items, impacting overall performance.
- Cautious Future Outlook: The company issued FY26 guidance with EPS expectations between $2.13 and $2.32 and revenue growth of only 4% to 6%, both below market expectations, suggesting pressure on future growth.
- Estimate Downgrades: Analysts have lowered earnings estimates across all time frames, with current quarter estimates dropping from $0.38 to $0.35, an 8% decrease, highlighting market concerns about the company's outlook.
See More
Global Markets Decline Amid Inflation Concerns
- Market Decline: On Thursday, the S&P 500 fell by 0.27%, the Dow Jones Industrial Average by 0.44%, and the Nasdaq 100 by 0.29%, indicating a broad market decline driven by inflation concerns and investor pessimism.
- Energy Price Volatility: Crude oil prices experienced significant fluctuations as WTI initially rallied before retreating after Israel's assistance to the US in opening the Strait of Hormuz, highlighting the direct impact of geopolitical tensions on energy markets.
- Rising Bond Yields: The 10-year German Bund yield rose to a 2.25-year high of 3.01%, while the 10-year US Treasury yield reached a 6.75-month high of 4.32%, reflecting market expectations of potential tightening monetary policies by central banks, which could increase borrowing costs.
- Economic Data Impact: US weekly initial jobless claims unexpectedly fell to 205,000, indicating a strong labor market, while the Philadelphia Fed business outlook survey unexpectedly rose to a 6-month high of 18.1, further intensifying market concerns over potential interest rate hikes.
See More
