U.S. markets focus on Salesforce, Snowflake and key data releases

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U.S. markets focus: Salesforce, Snowflake, key data

Highlights

Salesforce beats earnings estimates and forecasts over $46 billion in 2024 revenue, but shares remain 37% below their November high amid muted guidance response.
Snowflake soars 36% in extended trading after surpassing quarterly earnings and revenue estimates, driven by strong demand for Snowflake Intelligence and enterprise AI product innovation.
Investors monitor major U.S. economic releases, with consensus estimates at 213,000 jobless claims, 2% Q1 GDP, 3.5% April durable goods increase, and 3.8% annual PCE price index rise.

Earnings, data and Fed comments shape Thursday's session

As reported by CNBC, traders are entering Thursday with a broad list of market catalysts after the Dow Industrials, the Nasdaq 100 and the Russell 2000 reach new highs on Wednesday.

Salesforce is little changed in extended trading after beating earnings estimates, while its guidance draws a more muted response from investors and analysts. Chief Executive Marc Benioff tells CNBC's Jim Cramer that the company is set for a "monster year" and says Salesforce expects to deliver more than $46 billion in revenue this year, helped by agentic capabilities across its products. The shares remain 37% below their November high, and the company is still executing a share buyback program announced earlier this year.

Snowflake jumps 36% in extended trading after quarterly results top earnings and revenue estimates. Chief Executive Sridhar Ramaswamy says the company's products are easy to use and highlights strong demand for Snowflake Intelligence, while also pointing to partnerships with leading model developers and product innovation tied to enterprise AI.

Investors are also watching a dense morning schedule of U.S. economic releases, including weekly jobless claims, the second reading of first-quarter GDP, durable goods and the personal consumption expenditures price index. Dow Jones consensus estimates point to 213,000 for initial jobless claims, 2% for first-quarter real GDP, and a 3.5% rise in April durable goods, while the PCE price index is expected to increase 0.5% month to month and 3.8% from a year earlier.

Treasury markets are adding another layer of focus before the data. The 10-year Treasury yield stands at 4.502%, the 2-year at 4.057%, the 1-year bill at 3.818%, the 6-month bill at 3.778%, and the 3-month and 1-month bills are both near 3.68%. Federal Reserve speakers due later in the day include New York Fed President John Williams, St. Louis Fed President Alberto Musalem and Richmond Fed President Tom Barkin.

Retail, banking and technology names remain in view

Beyond the headline software earnings, several retail, banking and hardware companies are also on investors' radar as the market measures whether the rally is broadening across sectors.

Best Buy is up 4% over the past three months but remains 24% below its October high, while Kohl's has fallen 21% over the same period and is down 48% from its December high. In Canada, Royal Bank of Canada, Toronto-Dominion Bank and Canadian Imperial Bank are each up about 15% over the past three months and are trading near 52-week highs, after Bank of Montreal beats estimates, raises its dividend and hits a fresh high on Wednesday.

Dell is due to report after the bell on Thursday, with its shares having more than doubled in the past three months and closing Wednesday at $305.32 after reaching a new high. Hyatt is also in focus as it holds an investor day in Chicago, with the stock up 9.3% in May after touching a record on Wednesday.

The broader market backdrop remains supportive for risk assets. The Russell 2000 is up 4.3% in May, the Nasdaq 100 has gained 9% in the month, and the Dow is up 3%, suggesting investors are balancing enthusiasm for technology and AI-linked growth with close attention to inflation data, rates and corporate guidance.

Our earlier coverage of bearish options positioning in the iShares Russell 2000 ETF (IWM) highlighted unusually defensive sentiment in small caps heading into a heavy slate of U.S. economic releases, including PCE inflation, jobless claims and GDP. We noted that put activity dominated IWM trading and pointed to a large put spread that implied expectations for a meaningful pullback, underscoring how sensitive the Russell 2000 can be to shifts in Treasury yields and Fed-driven rate expectations.

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