Key Takeaways
Major U.S. equities indexes ended the midweek trading session mixed as stocks rallied late in the day.
The rally clawed back losses from earlier in the day, after the Bureau of Economic Analysis reported that the nation's gross domestic product (GDP) shrank in the first quarter . It was the first downturn in economic output since the opening quarter of 2022.
The afternoon rebound resulted in the S&P 500 ending the day up 0.2% and the Dow industrials rose 0.4%. Meanwhile the tech-heavy Nasdaq slipped less than 0.1% on Wednesday.
Super Micro Computer ( SMCI ) shares plunged 11.5%, losing the most of any S&P 500 stock, after preliminary quarterly results from the maker of servers and data storage systems came in below its previous forecasts . Supermicro cited timing issues affecting its sales during the period as customers push back purchases into the next fiscal quarter.
Edison International (
EIX
) declined 8.9% on Wednesday. The utility company reported better-than-expected first-quarter profits and boosted its full-year earnings outlook, but quarterly sales fell short of estimates. The company also indicated that its Southern California Edison subsidiary could incur significant losses related to the Eaton fire. According
The Los Angeles Times
, ongoing investigations have yet to pinpoint Edison's equipment as a source of the blaze, but without any additional evidence, the power provider could face liabilities.
Shares of fitness and navigation device manufacturer Garmin ( GRMN ) dropped 8.4% following mixed first-quarter earnings results. Although sales for the period exceeded forecasts, profits missed expectations. An operating loss in Garmin's auto original equipment manufacturer (OEM) segment contributed to the earnings shortfall. However, the company benefited from positive sales momentum in its outdoor, fitness, aviation, and marine businesses.
Hard disk drive and solid state drive manufacturer Seagate Technology ( STX ) reported better-than-expected sales and profits for its fiscal third quarter, which ended in March, and provided an upbeat forecast for the current quarter. Robust demand for the company's heat-assisted magnetic recording (HAMR) storage technology helped underpin the strong performance. Seagate shares surged 11.6%, securing the S&P 500's top daily performance.
Strong quarterly results also helped lift shares of Trane Technologies ( TT ), which jumped 8.5% after the heating, ventilation, and air conditioning (HVAC) firm topped first-quarter sales and profit estimates. Solid organic revenue growth contributed to the Ireland-based company's performance during the quarter.
Shares of Western Digital (
WDC
) jumped 8.0% after the data storage provider exceeded estimates with its quarterly sales and profits. Western Digital also initiated a new quarterly dividend program.
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