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 U.S. stocks closed higher Wednesday, handing the Nasdaq Composite Index its 31st record close this year, as investors took heart in corporate earnings and service-sector data that surprised to the upside.
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 Western Digital Corp. slumped more than 12% in after-hours trading Wednesday following an earnings report that included a disappointing forecast for the hard-drive maker's new fiscal year. Western Digital reported fiscal fourth-quarter earnings of $148 million, or 49 cents a share, on sales of $4.29 billion, up from $3.63 billion a year ago. After adjusting for stock-based compensation and other factors, the company reported earnings of $1.23 a share, up from 17 cents a share last year. Analysts on average expected adjusted earnings of $1.22 a share on sales of $4.36 billion. While Western Digital's revenue was a bit light, the bigger miss was in the fiscal first-quarter forecast, which called for a year-over-year decline in sales with guidance for adjusted earnings of 45 cents to 65 cents a share on sales of $3.7 billion to $3.9 billion. Analysts on average were expecting adjusted earnings of $1.35 a share on sales of $4.36 billion. Western Digital shares have declined nearly 30% so far this year, and closed with a 0.7% decline at $44.47 Wednesday before plummeting to less than $40 in after-hours trading following the announcement.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
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Advanced Micro Devices Inc.'s market capitalization topped $100 billion for the first time after shares of the chip maker rose Wednesday for a third straight session of gains. AMD shares rose 0.3% to close at $85.31 for a market cap of $100.16 billion. Shares received a big boost Tuesday, after another analyst hiked his price target on the stock following the company's strong earnings report last week and Intel Corp.'s surprise announcement of next-gen chip delays the week before that. Of the 36 analysts who cover AMD, 15 have overweight or buy ratings, 18 have hold ratings, and three have sell ratings, with an average price target of $75.76, according to FactSet data. For the year, AMD shares are up 86%, while Intel shares are down 18%, giving the chip company a market cap of $208.06 billion. Pacing AMD are shares of Nvidia Corp. , which are up 92% for the year, valuing the company at $277.65 billion. Meanwhile, the S&P 500 index is up 3% for the year, while the tech-heavy Nasdaq Composite Index is up 23%, and the PHLX Semiconductor Index is up 19%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
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 The "dog days" of summer are here, but it's just as busy as ever on the Street. As earnings results continue to roll in, investors will be watching for any update on the next economic stimulus package along with the non-farm payroll report slated for release this Friday. Against this backdrop, plenty of questions remain, weighing on the minds of both institutional and private investors.In a recent note to clients, Oppenheimer's Chief Investment Strategist John Stoltzfus addresses these concerns. When it comes to stocks' disconnected state, he writes that the market tends to focus on the future, with it betting on a successful outcome based on the stimulus policy already put in place. But will this highly accommodative monetary policy eventually cause inflation?"We do not expect high levels of inflation to result from the extraordinary stimulus and monetary policy taken to deal with the Covid-19 pandemic. Federal Reserve vigilance against inflation (as well as vigilance by central banks around the world) is likely to be able to suitably address any flare up of inflation," Stoltzfus commented.Bearing this in mind, we took a closer look at three stocks backed by the analysts at Oppenheimer, the third best-performing research firm, according to TipRanks. Running the tickers through TipRanks' database, we learned Oppenheimer sees at least 120% upside potential in store for each, and all three have earned a "Strong Buy" consensus rating from the rest of the Street.Durect Corporation (DRRX)D
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Shares of AmerisourceBergen Corp. surged 4.8% toward a 5-year high in premarket trading Wednesday, as the pharmaceutical products supplier reported fiscal third-quarter earnings that beat expectations and raised its full-year outlook. Net income for the quarter to June 30 fell to $289.4 million, or $1.41 a share, from $302.0 million, or $1.43 a share, in the year-ago period. Excluding non-recurring items, adjusted earnings per share came to $1.85, above the FactSet consensus of $1.58. Revenue rose 0.3% to $45.37 billion, beating the FactSet consensus of $44.64 billion, as pharmaceutical distribution services revenue rose 0.1% to $43.6 billion and other revenue grew 4.4% to $1.8 billion, boosted by growth in its ABCS and World Courier businesses. For fiscal 2020, the company raised its adjusted EPS guidance range to $7.80 to $7.95 from $7.35 to $7.65. Revenue is now expected to grow in the mid-single digit percentage range, compared with previous guidance of low- to mid-single digit growth. The FactSet revenue consensus of $187.5 billion implies 4.4% growth. The stock has soared 23.2% year to date through Tuesday, while the S&P 500 has gained 2.3%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
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Walt Disney Co.'s plans to get more aggressive with streaming as the pandemic hammers other areas of the media conglomerate helped earn the stock an upgrade from Guggenheim analyst Michael Morris after the company's Tuesday afternoon earnings report. The stock is up more than 10% in Wednesday trading. Morris raised his rating on Disney shares to buy from neutral and upped his price target to $140 from $123 after Disney said it would launch a new streaming service overseas under the "Star" brand and release live-action "Mulan" as a direct-to-consumer option on Sept. 4 given disruptions to the traditional theater model due to COVID-19. "Using Disney assets to accelerate a push into DTC will likely be well received by investors," Morris said in his Wednesday morning note to clients. "Bottom line, as we head toward an investor day (in the coming months), we expect the burden of proof to be on why Disney will not be a secular streaming winner rather than justifying the company's ability to deliver on investor expectations." He saw hints in the company's language that may have signaled "a broader willingness to pursue additional opportunities" in streaming down the road, in his view. Credit Suisse analyst Douglas Mitchelson also upgraded the stock to outperform from neutral. "Overall, with new CEO Mr. Bob Chapek now indicating an "innovative and bold" further pivot to streaming, we expect Disney shares to be even more aggressively positioned as a streaming growth story (where investors have limited investment vehicles), and eventual COVID recovery play," he wrote. Disney shares have gained 27% so far this year as the S&P 500 has risen 16%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
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Stocks rose on the back of Disney earnings and coronavirus vaccine hopes as the broader market approached reached record levels.
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Exchange-traded funds with big holdings in Walt Disney Co. jumped Wednesday, with some adding to gains that put them on track for their best week in over a month. Disney shares were up nearly 11% at midday after a stronger-than-expected earnings report Tuesday night, pointing to a diversified revenue mix that shielded the company from the worst of the tourism slump. The SoFi 50 ETF , with 4.9% of its portfolio in the company, was up 1.2% at midday, outpacing the 0.6% gain in the broader market , while the Invesco Dynamic Media ETF , with 4.3% in Disney, was up 0.8%. Both were on track for a 4-week high. The iShares U.S. Consumer Services ETF was up 0.5%. It has a 4.3% weighting in Disney, but nearly 10% of its portfolio in Amazon.com Inc. , shares of which were up 1.3% at midday.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
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 Stocks rose Wednesday morning as investors considered a spate of updates on the coronavirus vaccine development front, alongside a batch of stronger than expected corporate earnings results.
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Beyond Meat Inc. shares are down 8% in early-morning trading Wednesday because, once again, the alternative protein maker is an apparent victim of Wall Street expectations. On Tuesday, the company exceeded $100 million in quarterly revenue for the first time and beat earnings estimates. All told, Beyond has topped the Street's sales expectations for all six quarters it has reported as a public company. The stock, however, has risen just twice following its quarterly disclosures. There were a couple reasons for investors' caution. Food service sales, a category that includes restaurants, fell 61% year over year, a victim of the pandemic as more Americans ate at home. International sales, meanwhile, declined 17%. Beyond shares are up 81% in 2020. The broader S&P 500 index is up 3% this year.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
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Lumber Liquidators Holdings Inc. reported Wednesday that it swung to a surprise second-quarter profit as sales fell less than expected, as sales trends improved through the quarter as markets reopened following COVID-19-related shutdowns. The wood flooring retailer recorded net income of $2.6 million, or 9 cents a share, after a loss of $2.9 million, or 10 cents a share, in the year-ago period. Excluding non-recurring items, adjusted earnings per share came to 10 cents, compared with the FactSet consensus of a per-share loss of 19 cents. Sales fell 20.2% to $230.3 million, above the FactSet consensus of $220.6 million, while same-store sales dropped 21.3% to beat expectations of a 24.4% decline. Through May 23, same-store sales had been down 30%. And through late June, all employees who had been furloughed because of the COVID-19 pandemic had returned to work, as the company's distribution centers resumed "normal" operations. "Based on what we know today about the impact of COVID-19, the company believes that cash flows from operations, together with the liquidity under its Credit Agreement, provides sufficient liquidity to navigate the current environment," the company stated. The stock, which was indicated up fractionally in premarket trading, has more than doubled (up 134%) year to date through Tuesday, while the S&P 500 has gained 2.3%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
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The broader indices' pace slowed after yesterday's energetic rally, as Tuesday offered up little for the market to hang its hat on.
House Speaker Nancy Pelosi told Fox News she doesn't believe a deal on more economic stimulus will be reached this week. That dulled the optimism sparked by earlier comments from Treasury Secretary Steven Mnuchin and Senate Minority Leader Chuck Schumer pointing toward modest progress.
SEE MORE 20 Best Stocks to Invest In During This Recession
"Europe has agreed on a historic recovery fund, but U.S. stimulus is now at risk of fading. Wrangling over the size and makeup of a new U.S. fiscal package is intensifying as key benefits expire and states face huge budget shortfalls," BlackRock Investment Institute strategists write. "Congress still looks far from reaching a comprehensive deal but we could see a $1-1.5 trillion fiscal package that extends some federal stimulus measures through late-2020."
But the earnings calendar kept things interesting.
Video game maker Take-Two Interactive (TTWO, 5.9%) jumped after reporting that stay-at-home trends helped the company more than double its sales for its most recent quarter.
Energy giant BP (BP, 7.5%), meanwhile, cut its dividend in half - a move we recently warned investors about. But Wall Street celebrated the cash savings, as well as BP's new clean-energy strategy.
The Dow Jones Industrial Average posted a modest 0.6% gain to 26,828, the
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