Premarket trading in the U.S. equities market featured a raft of outsized moves across consumer, technology and enterprise software names, led by a rally in Dollar Tree after the discount retailer delivered a stronger-than-expected first quarter. The stock climbed more than 11% as adjusted earnings of $1.74 per share came in well above the $1.53 per share consensus, with revenue also topping estimates. Dollar Tree also announced a DoorDash on-demand delivery partnership to bring groceries and other items from its stores directly to customers, according to CNBC.
In a separate surge, Snowflake shares jumped nearly 37% after the cloud-data platform provider posted a first-quarter beat and outlined a plan to spend $6 billion on Amazon Web Services over the next five years. The company reported adjusted earnings of 39 cents per share on revenue of $1.39 billion, topping the Street’s targets of 32 cents and $1.32 billion, according to LSEG data. Snowflake’s results and strategic AWS collaboration helped lift related software names, with DataDog and ServiceNow advancing in premarket trading as well.
Software and cloud peers were also in focus after Salesforce offered guidance that kept shares briefly softer, sliding about 1%. The company projected current-quarter revenue of $11.27 billion to $11.35 billion, versus a consensus of $11.36 billion from LSEG. At the same time, Salesforce raised its full-year earnings guidance following a first-quarter beat on both earnings and revenue, data show. Against that backdrop, Agilent Technologies rose about 9% as it lifted its full-year adjusted earnings target to $6.00-$6.10 per share, above prior ranges, and posted a second-quarter beat on top and bottom lines. Best Buy followed with an ~8% rise after reporting first-quarter results that exceeded expectations and reaffirming its full-year outlook.
Not all hardware names advanced, however. Marvell Technology slipped roughly 3% even after delivering a favorable outlook for the current quarter, with adjusted earnings of 93 cents per share on revenue of $2.70 billion, above the Street’s expectations of 90 cents and $2.60 billion, per LSEG. The first-quarter results also topped consensus estimates.
In the consumer goods space, Hormel Foods jumped about 10% after fiscal second-quarter adjusted earnings of 40 cents beat estimates of 35 cents, with revenue broadly in line with forecasts. The move reflected better-than-expected profitability in the quarter, even as the revenue line remained close to expectations. Elsewhere in the cloud-and-storage arena, Everpure, the company formerly known as Pure Storage, fell more than 10% despite posting a first-quarter beat on adjusted earnings and revenue and guiding higher for operating income this year; the non-GAAP gross margin for the quarter was in line with expectations, according to CNBC’s coverage.
Snowflake’s strength also helped lift other software names: DataDog rose about 6% and ServiceNow gained more than 5.5% as investors rotated into tech beneficiaries of stronger cloud investment and data-platform spend. In the chip-design space, Synopsys slid more than 2% after announcing an agreement with activist investor Elliott Investment Management that will add Jesse Cohn to its board, effective June 1, while also reporting second-quarter results that topped Street expectations. The company posted adjusted earnings of $3.35 per share on revenue of $2.28 billion, data show.
Beyond the software sector, Nutanix edged up around 2% after fiscal third-quarter results beat consensus on both earnings and revenue, with non-GAAP operating margin coming in well ahead of estimates. Braze, the customer-engagement software provider, dropped about 10% after first-quarter adjusted earnings of 10 cents were in line with forecasts, while gross margin fell short of Street expectations. Burlington Stores slipped about 3.5% despite beating on both earnings and revenue, though it guided above expectations for the full year and announced plans to open additional stores. Kohl’s rose close to 11% after posting a first-quarter loss narrower than expected, with revenue in line with estimates.
Other notable movements included Dell Technologies edging higher after securing a $9.7 billion Pentagon software contract, lifting the stock by roughly 4%. In the entertainment and hospitality space, Caesars Entertainment shares gained about 2% on news Fertitta Entertainment agreed to acquire the company for $17.6 billion in an all-cash deal.
Key takeaways
- Dollar Tree — Up more than 11% on a first-quarter beat and a new DoorDash delivery partnership, signaling potential acceleration in traffic and order size as the consumer sector remains in focus.
- Snowflake — Up about 37% after a strong quarterly report and a major AWS spending plan, underscoring investors’ faith in cloud-platform demand amid broader AI-related reinvestment.
- Guidance and mixed results — Salesforce and several software names moved on a mix of narrowed gaps between guidance and consensus, with some raising full-year expectations even as near-term revenue prints varied.
- Other notable movers — Marvell and Braze showed mixed reactions to quarterly results and margins, while Dell and Kohl’s highlighted the continued sensitivity of equities to defense contracts and retail earnings strength, respectively.
What drove the move
Several forces shaped the premarket action. Strong earnings beats in consumer retail (Dollar Tree) and cloud software (Snowflake) reinforced the appeal of value and growth pockets that can still deliver above-consensus results in a mixed macro backdrop. The DoorDash delivery tie-up added a strategic revenue channel for Dollar Tree, aligning with broader consumer-delivery trends that have gained traction in recent quarters.
In software and data infrastructure, Snowflake’s plan to spend $6 billion with AWS over five years signaled a longer-term commitment to cloud-first data management and analytic workloads, a favorable setup for investors betting on AI-enabled workflows and enterprise data consumption. The accompanying quarterly metrics surpassed expectations, reinforcing the notion that leading data platforms can monetize cloud-scale demand even as some peers navigate earnings cycles.
Meanwhile, Salesforce’ nuanced guidance—tight near-term revenue expectations but higher full-year earnings—reflects a cautious but constructive stance on profitability as the company continues to scale its platform. Agilent’s raised full-year target and Best Buy’s solid quarterly print underscored resilience in diverse areas of the market, from life sciences instruments to consumer electronics and services.
On the contrast side, some cloud and software peers experienced puts-and-takes in margins and guidance. Marvell’s stronger outlook wasn’t enough to offset a modest stock decline, illustrating how investors weigh sequenced guidance against current-quarter prints. The weakness in Everpure highlights ongoing evaluation of gross margin dynamics in high-growth storage and data-center plays, even when earnings beat expectations.
What analysts are saying
Analysts cited by LSEG highlighted a few consistent themes. The breadth of Snowflake’s rally suggested conviction around cloud infrastructure demand and the strategic AWS alliance, with investors pricing in ongoing demand for data-platform services that support AI and analytics workloads. For Dollar Tree, the earnings beat and the DoorDash partnership were viewed as meaningful catalysts that could expand the retailer’s reach beyond traditional store-based footfall.
For Salesforce, the near-term revenue guidance remained a focal point, with the upside in full-year earnings tempering concerns about quarterly revenue volatility. Equity traders weighed Agilent and Best Buy as indicators that non-tech sectors can still deliver upside surprises in earnings and guidance when cost controls and operating leverage align with top-line strength.
Bigger picture
The premarket moves reflect a market still parsing a mixed economic backdrop, with investors steering toward companies that combine durable franchises with scalable growth avenues—particularly in cloud computing, data analytics and AI-enabled services. The size of Snowflake’s advance suggests that investors are pricing in a continued cycle of cloud and data-spend, even as macro headlines remain unsettled. The day’s action also underscores the market’s bifurcation: established consumer and enterprise software firms trading on momentum while retailers and hardware names react to quarterly surprises and forward-looking guidance.
Looking ahead, traders will be watching a stream of upcoming earnings and guidance, as well as any developments on the broader economic front—particularly central-bank signals and inflation indicators—that could influence the pace of multiple expansion for growth equities versus more traditional names.
What to watch next: ongoing quarterly results from major software and cloud players, any incremental news on strategic partnerships or government contracts, and the broader trajectory of the consumer and enterprise tech cycle as investors weigh near-term earnings against longer-term growth prospects.
