Wall Street gave up early gains on Wednesday as tech stocks tumbled under renewed pressure, dragging the Nasdaq into the red. Markets are treading cautiously ahead of Jerome Powell’s Jackson Hole speech, while Fed minutes revealed increasing internal discord.
Shares of beauty products company Estée Lauder (NYSE:EL)
fell 4.9% in the afternoon session after the company reported a sharp decline in sales for its fourth quarter and provided a weaker-than-expected forecast for the upcoming fiscal year. Revenue for the quarter fell 11.9% year on year to $3.41 billion, meeting Wall Street’s expectations. However, other key metrics disappointed investors. While adjusted earnings of $0.09 per share met analyst estimates, it marked a significant drop from $0.64 in the same quarter last year. Furthermore, the company reported an adjusted EBITDA loss of $180 million, substantially missing analyst projections of a $318.8 million profit. Compounding the weak results, Estée Lauder issued guidance for its 2026 fiscal year with adjusted earnings per share expected to be between $1.90 and $2.10. The midpoint of this range is nearly 10% below the consensus analyst forecast, raising concerns about the company's profitability outlook.
A second day of selling pressure hit technology stocks tied to the AI theme on Wednesday, as sentiment cooled after an MIT report questioned the broad profitability of the new technology.
As the US market prepares to open on Wednesday, let's get an early glimpse into the pre-market session and identify the S&P500 stocks leading the pack in terms of gains and losses.
Beauty products company Estée Lauder (NYSE:EL) met Wall Street’s revenue expectations in Q2 CY2025, but sales fell by 11.9% year on year to $3.41 billion. Its non-GAAP profit of $0.09 per share was in line with analysts’ consensus estimates.
Estée Lauder (EL) stock drops after Q4 revenue misses estimates. The beauty giant cites challenges in Asia travel retail and new global tariffs impacting its 2026 outlook.
A number of stocks fell in the pre-market session after markets pulled back amid hotter-than-expected inflation data. The main concern for investors was the July Producer Price Index (PPI), a measure of wholesale inflation. The higher-than-expected reading suggests that companies could face squeezed profit margins due to rising costs. This also reduces the likelihood of the Federal Reserve cutting interest rates, which could further dampen economic activity. Compounding these inflation fears are multiple reports signaling a weakening consumer.
