Wall Street watchlist centers on tech earnings, airline costs and FedEx freight spinoff

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Wall Street watchlist: tech, airlines, FedEx

Highlights

Snowflake and Salesforce report earnings after the bell with implied volatility at 12% and 8% respectively, while analysts remain broadly constructive with targets well above current prices.
Airlines such as Delta (+16%), United (+14%), and American (+22%) have rallied sharply in the past month despite margin concerns from rising jet fuel prices.
FedEx Freight begins trading as FDXF next week after board approval of the spinoff, drawing new Wall Street attention to less-than-truckload carrier peers with strong recent gains.

Tech earnings and corporate updates in focus

As reported by CNBC, investors are watching a heavy Wednesday lineup that includes earnings from Snowflake and Salesforce after the bell, alongside several corporate reports before the market opens.

Snowflake CEO Sridhar Ramaswamy and Salesforce CEO Marc Benioff are both scheduled to appear on "Mad Money" with Jim Cramer. Snowflake shares have gained 2.6% over the past three months but remain down 37% from their November high, while Salesforce has lost 10% over the same period and is down 36% from last year's high.

Analyst positioning remains broadly constructive on both software names. FactSet data show 46 analysts rate Snowflake buy or overweight, six rate it hold and one rates it sell, with an average price target of $231.38 versus Tuesday's close of $177.60. For Salesforce, 40 analysts rate the stock buy or overweight, 13 rate it hold and two rate it sell, with an average target of $254.43 compared with a $179.08 close.

Options markets are also signaling differing expectations for post-earnings moves. Implied volatility stands near 8% for Salesforce, roughly in line with the past four quarters, though actual moves have come in about 50% below that level each time. Snowflake's implied volatility is steeper at 12%.

Before the bell, Abercrombie & Fitch, Dick's Sporting Goods, Manchester United and Bank of Montreal are also set to report. Abercrombie shares have fallen almost 25% in three months and remain down 43% from their January high, while Dick's Sporting Goods has lost 15% over that period despite hitting a high on Tuesday.

Manchester United shares have gained 12% in the past three months and stand 4.3% below last week's high after the club finished third in the Premier League. U.S.-listed Bank of Montreal shares have added more than 8% in three months, while the Canadian-traded stock reached a high on Monday.

Airline and freight sectors draw broader market attention

Airline stocks are also on the radar as CNBC's Phil LeBeau previews a key industry conference ahead of the summer travel season, with investors closely tracking the effect of elevated jet fuel prices on margins.

Recent share performance across the group has been strong. Delta Air Lines has gained about 16% in the past month and hit a high on Tuesday, United has risen around 14% but remains 11% below its January high, and American has climbed 22% in the last month while staying 10% below its January peak.

Southwest has advanced 7% over the past month and is 23% below its February high. JetBlue is flat over the past month but up 13% in May, though still 18% below its February high. Alaska Air has gained 5% in the past month and 12% in May, while remaining 33% below its September high.

In transport and industrials, FedEx Freight is set to begin trading next week under the ticker FDXF after FedEx's board approved the spinoff earlier this month. The separation is expected to bring a new phase of Wall Street attention to less-than-truckload carriers, a segment that combines smaller shipments from multiple customers on one truck.

FedEx shares are 1% below their April high and have surged 45% in six months. Peer stocks are also active, with Old Dominion down 7% from its April high but up about 6% in the past week, XPO down 9% from its April high and up 4% in a week, Saia hitting a new high on Tuesday after a 67% gain in six months, ArcBest trading 4% below its April high after a 27% rise in three months, and TFI International reaching a new high on Tuesday after adding more than 8% in the past month.

Our earlier report on Micron Technology’s surge past a $1 trillion market capitalization explained how the milestone amplified the stock’s profile and attracted stronger institutional attention. We also noted that despite bullish momentum, overbought conditions increased the risk of a near-term consolidation, with the $850–$920 area highlighted as a key zone for a breakout or pullback.

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