Stock Market Update

[BRIEFING.COM] The major averages continue to chart new session lows.

Palo Alto Networks (PANW 280.96, -16.22, -5.46%) is trading lower despite delivering a clean Q3 (Apr) beat and upside Q4 (Jul) guidance, suggesting that expectations were really high heading into the report. The stock had run roughly 60% since early May. Also, the guidance for metrics like RPO and NGS ARR were perhaps good but not great as they now include the recent CyberArk and Chronosphere acquisitions.

Meanwhile, Ulta Beauty (ULTA 467.02, -27.86, -5.63%) is slipping despite a strong Q1 beat as investors appear to be focusing on the limited flow-through to the full-year outlook after a better-than-expected quarter. ULTA reported EPS of $7.74 on revenue of $3.16 billion, with comparable sales up 5.3% as both traffic and average ticket increased. However, full-year revenue guidance was reaffirmed at roughly $13.14-13.26 billion, while EPS guidance, though raised from $28.05-28.55 to $28.36-28.80, remained essentially in line with consensus. Management also maintained a measured tone, citing macro uncertainty, inflation pressure, and a more value-focused consumer.