The stock market saw gains on Wednesday, November 29th, 2023, as comments from a Federal Reserve official sparked optimism about potential interest rate cuts happening sooner than expected. Several stocks were making big moves, but two that stood out the most were NetApp (NTAP) and Workday (WDAY).
NetApp and Workday emerged as two of the most actively moving stocks today. NetApp, the data and storage software company, jumped over 15%, while Workday, the human resources technology provider, climbed around 8%.
What Drove the Big Gains in NetApp and Workday
For NetApp, the substantial stock price increase came after the company provided an improved business outlook for fiscal 2024. Specifically, NetApp said it expects revenue to decline by only about 2% year-over-year in fiscal 2024. This is a narrower drop than the 3.5% decline analysts were estimating previously.
Additionally, NetApp offered better-than-expected earnings guidance for the full fiscal year 2024. The company forecast adjusted profits in the range of $6.05 to $6.25 per share, surpassing Wall Street’s estimates of $5.73 per share. The upbeat guidance also topped NetApp’s own prior forecast of $5.65 to $5.85 per share.
As for Workday, its shares jumped after the company delivered strong third quarter financial results. Workday posted adjusted earnings for Q3 that exceeded analysts’ forecasts. Moreover, the company saw subscription revenue grow 18.1% in the quarter.
Workday also provided an increased outlook for full-year fiscal 2023 subscription revenue. It now expects subscription revenue to reach $6.598 billion, up from the previous guidance range of $6.57 billion to $6.59 billion.
Other Notable Stock Movers
Beyond NetApp and Workday, other stocks making pronounced moves on Wednesday included:
- General Motors (GM) – up around 11% after reinstating 2023 guidance, boosting its dividend, and unveiling a $10 billion share buyback program
- Fluence Energy (FLNC) – soaring over 28% following a surprise profit in its fiscal Q4
- Petco – plunging 22% after swinging to a Q3 loss and reducing earnings outlook
- Foot Locker – surging 20% after topping Q3 earnings estimates
- GameStop (GME) – gaining 17% as high-risk options betting on huge share price gains continue
- Alibaba – falling nearly 2% on a report its founder Jack Ma has urged internal business reforms
The Broader Market Picture
Stocks broadly moved higher during Wednesday’s trading session amid easing worries over the pace of Federal Reserve interest rate hikes going forward. The tech-heavy Nasdaq Composite index was having an especially strong day thanks to the greater risk-on sentiment.
Continued signs of peaking inflation combined with comments from Fed Vice Chair Lael Brainard indicating smaller potential rate hikes have stoked investor hopes. Brainard said the Fed will likely soon slow its aggressive interest rate hiking campaign.
In the backdrop of a solid day in the overall stock market, data/storage solutions provider NetApp and HR technology company Workday emerged as two of the most actively advancing stocks. Both companies impressed investors with better-than-expected quarterly results and improved full-year guidance. If the broader risk-on mood in markets continues, NetApp and Workday could see further upside ahead.