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Key Takeaways
Modine Manufacturing shares fell sharply ahead of Wednesday’s opening bell after the thermal-management solutions provider posted weaker-than-expected quarterly sales and issued mixed guidance. The company is adding additional data center manufacturing capacity in the United States, Canada, and the United Kingdom. Modine Manufacturing shares find support around $94 level from a three-month horizontal line that sits in close proximity to the 50-day moving average. Shares in Modine Manufacturing ( MOD ) dropped 9% in premarket trading Wednesday morning after the thermal-management solutions provider posted weaker-than-expected quarterly sales and issued mixed guidance as it tries a capture a slice of the booming artificial intelligence (AI) data center market. For the quarter ending March 31, the Racine, Wisconsin-based company reported revenue of $603.5 million, down 2% from a year earlier and below the $605.4 million expected by analysts. Adjusted earnings in the period of 77 cents per share edged past Wall Street estimates by a penny. Turning to forward guidance , the company expects full-year fiscal 2025 net sales growth of between 5% and 10%, which matches the consensus view. However, It projects adjusted earnings to range between $3.55 and $3.85 per share, with the $3.70 midpoint of that forecast coming in below analysts’ expectations of $3.81 a share.
Data Center Growth to Drive Sales
The company said it is adding additional data center manufacturing capacity in the United States, Canada, and the United Kingdom to meet the future needs of its clients. “Overall, we expect revenue growth to be driven by continued strength in the data center market and growth in other targeted markets, partially offset by lower sales resulting from the impact of Performance Technologies divestitures and other planned reductions,” Modine CEO Neil Brinker said in the earnings release. Though a McKinsey report projects data center demand in the United States to grow by 10% a year until 2030, the company’s climate solutions segment that houses its data center cooling products reported sales growth of just 1% in the March quarter. The stock’s post-earnings sell-off indicates that investors may be cautious over the division’s expansion before seeing further revenue improvement.
Watch if Modine Shares Close Below This Key Level
Modine Manufacturing shares have trended steadily higher over the past 12 months, with only several minor retracements . After climbing to a new all-time high (ATH) last week, the price eased slightly ahead of the company’s quarterly results. Amid expected earnings-driven weakness, investors should keep an eye on the $94 level, an area on the chart that finds support from a three-month horizontal line that sits in close proximity to the 50-day moving average . A close below this key technical level could see the stock test lower support situated around $81.50. Modine shares were down 9% at $92.31 at around 7:15 a.m. ET. The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info. As of the date this article was written, the author does not own any of the above securities.

Key Takeaways
American depositary receipts (ADRs) of Temu parent company PDD Holdings rose Wednesday as the company reported quarterly results substantially above expectations. Revenue once again doubled year-over-year, while net income more than tripled. Temu has driven the revenue growth in the U.S. since its September 2022 launch, gaining market share and attention of American consumers. Chinese e-commerce company PDD Holdings ( PDD ), which owns the discount marketplace Temu, saw its American depositary receipts (ADRs ) surge after the opening bell Wednesday following a first-quarter earnings report that blew past expectations. Like last quarter , PDD more than doubled its revenue year-over-year, reporting revenue of 86.81 billion Chinese yuan ($12.02 billion) compared with CNY37.64 billion last year, well above the CNY76.38 billion analysts had expected, according to estimates compiled by Visible Alpha. PDD more than tripled its profits year-over-year, recording CNY28 billion for the quarter from CNY8.1 billion a year ago, and more than doubled analyst estimates of CNY13.02 billion. The company reported diluted earnings per share (EPS ) of CNY4.74, while analysts had projected CNY2.25.
Temu Continues To Grow, But Not Without Scrutiny
Temu has grown substantially since launching in the U.S. in September 2022, helping PDD repeatedly beat expectations in its earnings reports over the last year . The company also made headlines earlier this year, when it bought multiple slots of commercial space during the Super Bowl , which has also led to increased scrutiny of Temu’s business model. Allegations have been made against Temu and Chinese fast-fashion rival Shein that their businesses benefit from forced labor, including in a June 2023 House committee report, as they each depend on thousands of different suppliers. Both companies have denied the allegations. Jefferies analysts in March upgraded their rating of PDD to “buy” from “hold,” saying they believed “that concerns on geopolitical risks are priced in, and Temu’s market share gain story in domestic and overseas markets is intact.” ADRs of the company rose 5.4% to $153.31 as of 9:52 a.m. ET Wednesday, and have more than doubled over the last 12 months.

Key Takeaways
Gold and silver ETFs have gained as prices of the underlying precious metals have hit new highs. The SPDR Gold Shares ETF has gained 17.5% this year, largely tracking gold’s jump to new all-time highs. The iShares Physical Silver Trust is up 33% in 2024 as the underlying metal has hit its highest level in over a decade. Gold and silver exchange-traded funds gained on Monday as the underlying metals surged to new highs. Prices for gold bullion ( GOLD ) topped $2,450 for the first time on Monday, while silver ( SILVER ) was trading at its highest level in 11 years , around $32 Precious metals have been boosted by geopolitical tensions and weakness in the U.S. dollar after benign inflation data in the U.S. last week boosted hopes that the Federal Reserve could be in a position to consider cutting its benchmark interest rate. That’s good news for exchange-traded funds that hold gold and silver.
All The Glitters Includes Gold ETFs
SPDR Gold Shares ETF ( GLD )—the oldest and largest ETF backed by physical gold, with $64.8 billion in assets at the end of last week—rose 0.4% Monday and has gained 17.5% so far this year. Shares in another popular gold ETF, the iShares Gold Trust ( IAU ), also gained 0.4% Monday and are up 17.6% in 2024. In recent months, gold prices have been rising, propped up to a large extent by central bank purchases, especially from China. Early in the year, investors were pulling money out of gold ETFs, according to analysis from the World Gold Council. However, the recent rally in gold prices may have helped turn the tide in favor of the yellow metal, with North American gold ETFs recording net inflows in March and April after massive outflows in the first two months of the year.
Silver ETFs Sparkle
Silver ETFs were also higher after an increase in the price of the underlying precious metal. TradingView The iShares Physical Silver Trust ( SLV ), with $12.4 billion in assets, gained 0.7% on the day and are up 33% since the start of the year as retail investors look for diversification.

Key Takeaways
Petrobras CEO Jean Paul Prates was reportedly pushed out by Brazil President Lula da Silva following a dispute over the payment of dividends. Prates had resisted efforts by government-chosen members of the board to withhold an extraordinary dividend payout. Lula has been pushing Petrobras to reduce the amount given to investors and use the money to boost job creation and economic activity in the country. American Depositary Receipts (ADRs) of Petrobras ( PBR ) sank after the Brazilian government replaced the state-run oil giant’s CEO Jean Paul Prates. The company announced in a press release that Prates would be stepping down after a meeting of the board to consider his “early termination.” The Brazilian Ministry of Mines and Energy informed the company that Prates will be replaced by former energy regulator Magda Chambriard. Petrobras’ Chief Financial and Investor Relations Officer Sergio Caetano Leite?was also relieved of his duties, with Carlos Alberto Rechelo Neto appointed as interim CFO.
What’s Behind Petrobras’ Executive Shake-Up?
Prates was only at the helm since January 2023, and is the fourth CEO in as many years to be ousted. Brazil’s President, Luiz Inacio Lula da Silva, reportedly removed Prates following a dispute over dividends. Prates and Lula clashed when the CEO refused earlier this year to go along with government-chosen board members who wanted to withhold a payment of extraordinary dividends. Lula has been pushing for Petrobras to cut back on returning money to shareholders and instead use the cash to invest in areas that would create jobs and stimulate economic activity. The news sent Petrobras ADRs into negative territory for the year. TradingView

Key Takeaways
After Microsoft-backed OpenAI unveiled its most capable?artificial intelligence (AI)?model yet called GPT-4o, analysts suggested a number of companies including Apple and Nvidia could stand to benefit. Apple could get a boost amid reports of an Apple and OpenAI partnership, as audio capabilities showcased at the event could potentially enhance the iPhone’s Siri. The gains driven by GPT-4o could also help accelerate growth for Nvidia and other chipmakers in the AI ecosystem. After Microsoft-backed?( MSFT ) OpenAI unveiled its most capable artificial intelligence (AI) model yet called GPT-4o on Monday, analysts indicated that gains from the improved tech could benefit a number of companies including Apple ( AAPL ) and Nvidia ( NVDA ). Analysts highlighted how new audio capabilities could enhance the iPhone’s Siri amid reports about a possible Apple partnership. They also noted how developments like the launch of GPT-4o could boost demand for cloud platforms, as well as drive growth for Nvidia and other chipmakers.
Apple Could Get Boost Amid Reports of OpenAI Partnership
In the wake of reports that OpenAI and Apple are near closing an AI partnership deal , CFRA analysts suggested Apple could potentially leverage a partnership with OpenAI and enhanced voice features to “help make the iPhone a true assistant for consumers (via a massive upgrade for Siri).” “By combining voice, text and images seamlessly, the demo captured how AI can drive incredible amounts of productivity,” Bank of America analysts said in a report reiterating their “buy” rating for Apple on “benefits from GenAI at edge with gross margin upside and momentum in Services.”
Microsoft’s Azure Could Benefit From Cloud Demand
OpenAI’s new model could also serve to boost demand for Microsoft’s Azure, the exclusive cloud provider for OpenAI. UBS analysts noted in a report Tuesday that the “competitive landscape is intensifying” for large language models (LLMs) with the release of GPT-4o, which relies on the internet to connect to remote servers that run the AI workloads, and that “leading cloud platforms that host LLMs are well positioned to benefit from?increased consumption and uptake” associated with running AI workloads remotely.
Potential Growth Driver for Nvidia and Other Chipmakers in AI Ecosystem
At the end of the launch event, OpenAI Chief Technology Officer (CTO) Mira Murati thanked Nvidia and its CEO Jensen Huang “for bringing us the most advanced GPUs to make this demo possible,” underlining Nvidia’s prime position in the AI ecosystem with advancements made in the space benefiting the chipmaker. Bank of America analysts wrote that progress in the AI race, like OpenAI’s GOPT-4o launch, “could be a multi-year growth driver” for Nvidia, as well as Broadcom ( AVGO ), Marvell Technology ( MRVL ), Micron Technology?( MU ), Arm Holdings ( ARM ), and AMD ( AMD ), among others.

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Key Takeaways
The Consumer Price Index likely rose 3.4% over the year in April, compared to a 3.5% annual increase in March, according to forecasts. Inflation has stayed stubbornly over the Federal Reserve’s target of a 2% annual rate in the first half of this year, despite high interest rates meant to push it down. Fed officials have said they won’t cut the influential fed funds rate, which affect borrowing costs for all kinds of loans, until inflation is firmly on its way down to 2%. Inflation likely stayed higher than Fed officials would like in April, if early forecasts are correct. The cost of living as measured by the Consumer Price Index likely rose 3.4% over the year in April, down from a 3.5% increase in March according to a consensus estimate by forecasters tracked by Bloomberg, cited by Wells Fargo Securities, ahead of the official figures due from the Bureau of Labor Statistics Wednesday. The Federal Reserve Bank of Cleveland’s “nowcast,” which projects the CPI based on economic data as it comes in, also called for a 3.5% annual increase as of Friday. Either would be well above the Federal Reserve’s goal of a 2% annual inflation rate. Prices have risen faster than expected for the first three months of the year , showing that progress against inflation—which had fallen significantly last year—has stalled. High inflation has been tough on household budgets not only because of steeper prices for things like gas and groceries, but because it’s forced the Federal Reserve to delay cutting its benchmark interest rate, which has kept interest rates higher for all kinds of borrowing such as mortgages and credit cards.
Fed May Be Getting The Data It Wants, Just Very Slowly
Fed officials have said they are waiting for signs that inflation is on a firm downward trajectory before they’ll consider cutting the fed funds rate from the 23-year high where they’ve held it since last July. Inflation in line with forecasts would leave the Fed unlikely to cut that rate before December, Stephen Juneau?and Michael Gapen, economists at Bank of America, wrote in a commentary. Rising gasoline prices in April likely fueled inflation to remain stubbornly high, they said. However, the details of the report may be a bit more encouraging than the headline. “Core” inflation, which excludes volatile prices for food and energy, and which is closely watched by economists as an indicator of overall inflation trends, likely rose 0.3% over the month if the consensus estimate holds true, down from 0.4% in March. Economists found reason for optimism at used car auctions, where wholesale prices fell 2.3% in April, for a 14% year-over-year decline according to data provider Mannheim. Used car prices make up a significant portion of the overall inflation level. However, changes in wholesale used car prices usually affect inflation data at a delay of a few months, economists at BMO Capital Markets wrote in a commentary, so April’s inflation data may not reflect that dip in prices.

Key Takeaways
PayPal shares gained Tuesday as the electronic payments provider reported better-than-expected first-quarter profit and sales as its payment volumes and transactions increased. PayPal also boosted its full-year guidance for adjusted earnings per share. With Tuesday’s gains, PayPal shares have climbed close to 11% since the start of 2024. PayPal ( PYPL ) shares gained close to 2% Tuesday after the electronic payments provider reported results for the first quarter that beat estimates and raised its full-year earnings guidance as its payment volumes and transactions climbed.
Earnings, Revenue Beat Forecasts
PayPal reported first-quarter diluted earnings per share (EPS) of 83 cents, up from 70 cents a year ago. Revenue was up 9% from the year-ago period at $7.7 billion. Both exceeded analysts’ forecasts compiled by Visible Alpha. Total payment volume climbed 14% to $403.9 billion, with payment transactions advancing 11% to $6.5 billion. Active accounts declined 1% year-over-year to 427 million, but gained by 2 million or 0.4% from the fourth quarter. PayPal’s operating margin jumped 98 basis points (bps) from a year ago to 15.2%.
CEO Alex Chriss Calls 2024 a ‘Transition Year’
CEO Alex Chriss said that 2024 “remains a transition year,” with the company focusing on execution by “driving our key strategic initiatives, realizing cost savings, and reinvesting appropriately.” PayPal said it anticipates full-year adjusted EPS higher by a mid-to-high-single-digit percentage, up from its previous outlook of this year’s EPS being in line with 2023. PayPal shares rose 1.4% to $67.92 Tuesday, and have climbed close to 11% since the start of 2024.

Key Takeaways
Newell Brands reported better-than-expected first-quarter results Friday as the company said its turnaround plan is working, and shares soared. The maker of consumer and commercial products posted a quarterly loss of 2 cents per share, narrowed from a loss of 25 cents per share in the prior-year period. Chief executive Chris Peterson pointed to the “decisive actions” the company has taken to execute its new strategy. Newell Brands ( NWL ) shares surged in intraday trading Friday as the consumer and commercial products maker pointed to the success of its turnaround plan for better-than-expected results. The owner of Rubbermaid, Sharpie, and other well-known brands posted a first-quarter loss of 2 cents per share, narrowed from a loss of 25 cents per share in the prior-year period. On an adjusted basis it broke even, while analysts were expecting a loss. While revenue fell 8.4% year-over-year to $1.65 billion, it was better than estimates. Gross margin was 30.5%, up from 26.7% a year earlier. Chief Executive Officer (CEO ) Chris Peterson credited the performance to “decisive actions we’ve taken as part of our new strategy,” which he said have “led to excellent progress on the major operational and financial priorities for this year.” Peterson noted that Newell Brands is focusing on “disproportionately investing in innovation, brand building and go-to-market excellence in our largest and most profitable brands and markets.” The company affirmed its full-year normalized profit outlook of $0.52 to $0.62 per share, with revenue declining 5% to 8%. Despite today’s advance of 10% to $7.64 as of 1:41 p.m. ET Friday, shares of Newell Brands are about 12% lower for the year.

Key Takeaways
Meta shares tumbled over 10% Thursday, a day after the company said it expects higher expenses to invest in artificial intelligence (AI), but analysts suggested it could help Meta become an long-term AI leader. The company has demonstrated some early success in monetizing AI as it reported AI-powered recommendations boosting engagement. Analysts said that Meta’s increased spend could translate to long-term leadership. Meta Platforms ( META )?shares tumbled over 10% Thursday, a day after the company said it expects higher expenses to invest in artificial intelligence (AI) , but analysts said the near-term spending could boost Meta’s position in the long term. The tech giant reported first-quarter earnings after the bell Wednesday, beating analyst estimates, but the company gave a weak outlook and increased the lower end of its projected full-year expenses, sending shares lower.
Some Early Success With AI Monetization
On Meta’s earnings call , CEO Mark Zuckerberg reported that 30% of the content users see on Facebook and 50% on Instagram is delivered by its AI recommendation engines. He said AI-powered recommendations improve engagement and increase ad efficiency. Third Bridge analysts wrote that “the company’s revenue and market-share performance has been supported by its AI-enabled Advantage+ platform,” noting “the volume increases and pricing benefits associated with the platform.” “However, some other potential ROI benefits of the company’s AI initiatives and spending seem less clear,” the analysts added. Meta “has started to try to explain to stakeholders,” but the lack of a definitive timeline, clearly outlined return expectations, and specific long-term impacts on the business have raised concerns. JPMorgan said that while Meta’s mission around becoming a leading AI company is ambitious, the analysts were “encouraged” by Meta’s success with Llama 3 and Meta AI .
Near-Term Challenges
Wedbush analysts said they “think the setup will be challenging in the near-term as investors contemplate the implications of more aggressive spending with returns likely to be realized over a longer period.” “Upside in the near term may be limited,” the analysts wrote, noting that investors are waiting for “more clarity on potential 2025 spending levels,” evidence that the company can meet growth expectations despite harder comparables , and sustainable user and advertiser engagement with new AI offerings. Bank of America analysts said that while the positive momentum cycle could be over, Meta is “investing in the right places.” Third Bridge offered a similar sentiment, saying “some undoubtedly wonder if the company’s positive momentum is somewhat or even largely a thing of the past.”
Increased Spend Could Position Meta as an AI Leader Long Term
While increased spending to invest in AI may have made investors nervous, analysts indicated Meta could be on the right track investing in the long term. Wedbush analysts revised its estimates to reflect “the increased pace of expense growth and higher capex spending over the next few years as Meta repositions itself to emerge as a long-term leader in AI.” William Blair wrote that while “the scale and timing of the generative AI investment will be larger and longer than previous platform investments,” the analysts “believe it is still exercising prudence in spending and ultimately will be one of the leaders in the AI race.” They noted that it “may take some time and further proof points to investors.” Bank of America said that while “expectations reset,” the “AI leader building on strength” with its early success leveraging AI in its platform offerings. Meta shares lost 10.6% Thursday to finish at $441.38, though even at that price, they’ve gained close to 25% since the start of 2024.