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Markets Gain on Fed Rate Cut Likelihood - CRM, FIVE Beat & Raise
ZACKS· 2025-12-04 00:21
Market Overview - Market indexes experienced solid gains, with the Dow increasing by 408 points (+0.86%), S&P 500 by 20 points (+0.30%), Nasdaq by 40 points (+0.17%), and Russell 2000 by 47 points (+1.91%) [1] - Weak jobs figures from ADP's November private-sector payrolls report have reinforced expectations for a 25 basis-point rate cut next week, potentially lowering the Fed funds rate to 3.50-3.75% for the first time in over three years [1] Earnings Reports - Salesforce.com (CRM) reported Q3 earnings of $3.25 per share, exceeding expectations of $2.85, with revenues of $10.26 billion, reflecting an 8.6% year-over-year growth [2][3] - Five Below (FIVE) reported Q3 earnings of $0.68 per share, significantly above expectations of $0.22, with revenues of $1.04 billion, surpassing the $970 million consensus, and a 14.3% increase in comparable store sales [4] - Snowflake (SNOW) achieved Q3 earnings of $0.35 per share on revenues of $1.21 billion, beating estimates but saw a stock sell-off of 8.5% in after-hours trading despite raised revenue guidance [5] Upcoming Earnings - Notable companies reporting earnings include Kroger (KR) and Bank of Montreal (BMO) before the market opens, and DocuSign (DOCU) and Ulta Beauty (ULTA) after the close, with varying Zacks Rank ratings [8]