Constellation Brands Falls as Wine and Spirits Sales Slump

16 minutes ago

Constellation Brands (STZ), the maker of Corona and Modelo beers, posted mixed second-quarter results as wine and spirits sales sank. Shares were down 4% in recent trading, leading S&P 500 decliners.

The company reported second-quarter fiscal 2025 diluted earnings per share of $4.32, above estimates from analysts surveyed by Visible Alpha. However, revenue was short of forecasts, rising 2.9% to $2.92 billion.

Sales of Modelo Especial, the top selling beer in the U.S., rose 5% and those of Pacifico surged around 23%. But wine and spirits sales fell 12%.

CEO Bill Newlands said “the current macroeconomic backdrop has weighed on demand for beverage alcohol,” as well as overall consumer packaged goods.

The company said it sees full-year net sales growth in the range of 4% to 6%, with beer sales up 6%-8% and wine and spirits sales down 4% to 6%.

–Bill McColl

Tesla Shares Down as EV Maker Recalls Cybertrucks

1 hr 57 min ago

Tesla (TSLA) shares moved lower again Thursday morning after the company recalled more than 27,000 of its Cybertrucks because of a rearview camera issue. The stock had fallen sharply yesterday after the electric vehicle maker’s third-quarter deliveries failed to impress.

A notice from the National Highway Traffic Safety Administration said that under certain conditions, the Cybertruck system may not boot up immediately after being commanded. In that case, the rearview camera image may not display within two seconds of the driver putting the vehicle in reverse, as required by law. It added that a delay in the availability of the camera display “may affect the driver’s rear view and increase the risk of a collision.”

The recall involves vehicles manufactured between Nov. 13, 2023, and Sept. 14, 2024 that "are or were operating with a specific software logic for low voltage hardware."

Tesla said that starting on or shortly after Sept. 19, it sent an over-the-air software remedy to the affected Cybertrucks, and that all those in production will receive the fix as well. This was the fifth recall of the Cybertruck since Tesla began delivering them last November.

Tesla shares were down about 2% in late-morning trading Thursday. After gaining 32% in the third quarter, the stock is down 7% so far in October and has slipped into negative territory for the year.

–Bill McColl

Levi Stock Sinks as Company Mulls Sale of Dockers Brand

2 hr 53 min ago

Shares of Levi Strauss (LEVI) plunged in early trading Thursday after the jeans maker announced it may sell its Dockers brand as it delivered mixed third-quarter results.

While Levi’s adjusted earnings per share of 33 cents beat consensus estimates of analysts polled by Visible Alpha, its revenue of $1.52 billion came up short. Sales of Dockers were down 15% year-over-year, prompting executives to “evaluate strategic alternatives” for the unit.

For the full fiscal year, Levi’s said it expects total revenue to grow 1% compared to fiscal 2023, a more modest projection than the 1% to 3% growth it forecast when it reported its second quarter results.

Levi's also said it has "initiated a formal review of strategic alternatives for the Dockers brand," which could lead to the famous khaki brand being sold, though the review wasn't given a specific timeline.

The company's shares were down 7% in recent trading. The stock has gained 18% since the start of the year.

–Aaron McDade

Nvidia CEO Points to 'Insane' Demand for AI Chips

4 hr 53 min ago

Nvidia (NVDA) shares were up 2% in premarket trading Thursday after CEO Jensen Huang said during a CNBC interview late yesterday that demand for the company’s next generation Blackwell AI chips is “insane.” 

The stock has oscillated within a symmetrical triangle, a chart pattern that indicates a period of consolidation, typically followed by a new trending move in the direction of a breakout and longer-term trend, which in Nvidia’s case, signals further bullish price momentum.

The measuring principle and bars pattern technique forecasts upside targets on Nvidia's chart at $180 and $210, respectively.

A breakdown below the symmetrical triangle would likely see the shares find support around $97, near a trendline linking the twin March peaks with the upward sloping 200-day moving average.

Read our full technical analysis piece here.

–Timothy Smith

Futures Pointing to Lower Open for Major Indexes

5 hr 34 min ago

Futures tied to the Dow Jones Industrial Average were down 0.2%.

S&P 500 futures were down 0.1%.

Nasdaq 100 futures were down 0.2%.

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