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S&P 500’s Biggest Winners and Losers
29 minutes ago
Here are the S&P 500 stocks that gained and lost the most today.
Strong US Sales Boost Honda’s Operating Profit, Sending ADRs Higher
44 minutes ago
American Depositary Receipts (ADRs) of Honda Motor Company (HMC) gained almost 3% on Wednesday after the carmaker reported an increase in U.S. sales and announced a stock split.
Honda said U.S. sales in its fiscal 2024 first quarter jumped 44.7% to 347,000 units as supply chain disruptions caused by the COVID-19 pandemic eased. Worldwide, it sold 901,000 vehicles, up from 815,000 the year before. Motorcycle sales also advanced to 4.47 million from 4.25 million.
Operating profit soared 78% to 394.4 billion yen ($2.76 billion), and revenue gained 20.7% to 4.62 trillion yen ($30.2 billion).
With Wednesday’s gains, ADRs of Honda are up over 37% year-to-date.
-Bill McColl
Dow Gives Up Gains, Drops 190 Points in the Home Stretch
1 hr 3 min ago
After up-and-down trading, the Dow Jones Industrial Average plummeted in the final hour of the day to finish lower by 0.5%, or 191 points, as investors readied for inflation data to end the week, starting with tomorrow’s Consumer Price Index.
Industrials led the Dow today. Dow Chemical (DOW) was the index’s top performer, rising 1%, while conglomerate Honeywell (HON) moved up 0.9% and Caterpillar (CAT) gained 0.6%.
Chevron (CVX) shares edged up 0.2%. The energy sector led all industries today, with the S&P 500 Energy Sector Index rising 1.2% alongside crude oil futures, up 1.6%.
Salesforce (CRM) continued its downward trend, falling 2.7% to be the Dow’s worst performer for the second consecutive session after a downgrade from Bernstein earlier this week. Salesforce shares have finished lower in eight of the last 10 sessions.
Other Dow tech stocks also lagged. Intel (INTC) shares fell 2.1%, while IBM (IBM) dropped 1.2%. Microsoft (MSFT) also lost 1.2%, and Apple (AAPL) dipped 0.9%, its sixth decline over the past seven sessions, bringing its market capitalization to around $2.8 trillion after eclipsing $3 trillion in June.
Dow financial stocks also dipped after Moody’s downgrade of several regional banks yesterday, with Goldman Sachs (GS) dropping 1.6%, JPMorgan Chase (JPM) falling 1.3%, and American Express (AXP) moving lower by 1.2%. Visa (V) bucked the trend, moving higher by 0.3%.
-Terry Lane
Sony’s Profit Plummets, Dragged on by Financial Services
1 hr 32 min ago
Sony Group’s (SONY) earnings fell 31% year-over-year in the most recent quarter despite strong gaming revenue.
Profit at Sony’s financial services unit fell 61% from last year, a drop it attributed to interest rate changes affecting its life insurance business. Meanwhile, gaming revenue increased 28% from the same quarter a year ago while the unit’s operating income grew 8%.
The unit also raised its full-year revenue guidance by 7% on its expectations of solid Playstation 5 sales and favorable foreign exchange rates.
Sony’s American depositary receipts (ADRs) fell 6% Wednesday.
Rivian Reduces Per-Unit Losses on the Road to Profitability
2 hr 1 min ago
Electric vehicle (EV) maker Rivian Automotive Inc. (RIVN) is still losing money on every vehicle it makes, but losses have narrowed significantly as the company eyes profitability by the end of 2024.
On Tuesday evening, the company issued its second-quarter earnings report, which showed that gross loss per unit delivered between April 1 and June 30 came out to $32,595. That’s an improvement over the first quarter’s loss of $67,329 per delivered vehicle, and a huge gain over the same period a year ago, when per-unit losses were as high as $157,600.
Competitors in the EV space have been slashing prices this summer in an ongoing price war, but Rivian CEO RJ Scaringe said on the company’s earnings call Tuesday that Rivian wouldn’t be following suit, citing “continued strong demand.”
Despite the improvement, Rivian shares sank farther than the broader market Wednesday, falling nearly 8%.
-Vivian Medithi
Midday Market Movers
2 hr 22 min ago
Toast Inc. (TOST): Shares of the restaurant payment services company gained 15% after it reported second-quarter sales grew 45% over last year, surpassing analysts’ estimates.
Marqeta Inc. (MQ): The digital payments firm’s stock climbed 13% after it secured an extension of its partnership with Block (SQ) and reported second-quarter revenue above Wall Street’s expectations.
Akamai Technologies Inc. (AKAM): Shares of the cloud services provider gained 9% after it reported better-than-expected earnings for the second quarter and raised its full-year guidance on growing demand for its cybersecurity solutions.
Doximity Inc. (DOCS): Shares of the medical services platform provider fell 22% after the company lowered its full-year revenue forecast as it grapples with weaker pharmaceutical sales.
Palantir Technologies (PLTR): Shares of the data analytics software company dropped 9% after reporting revenue growth slowed to 10% in the second quarter, versus 15% in Q1.
Roblox Shares Tumble After Reporting a Wider Loss as Expenses Grew
3 hr 9 min ago
Roblox’s (RBLX) shares tumbled 20% Wednesday as the online gaming platform’s second-quarter loss widened because of increased costs.
Roblox posted a loss of 46 cents, up from 30 cents in 2022 and above the 45-cent drop analysts had expected. Bookings, which the company defines as revenue plus the change in deferred revenue during the period and other non-cash adjustments, rose 22% to $780.7 million, and that also missed estimates. Average bookings per daily active user fell 3% to $11.92.
The company warned that it anticipates continuing to post a loss for the “foreseeable future.” Shares of Roblox fell to their lowest level since January following the news.
YCharts
-Bill McColl
Natural Gas Futures Jump as Labor Action Threatens Supply
4 hr 6 min ago
Futures contracts for natural gas jumped more than 6% Wednesday morning after workers at several liquefied natural gas (LNG) facilities in Australia threatened to strike.
Workers at three natural gas platforms operated by Woodside Energy voted in favor of “protected action options,” which could include a strike, on Wednesday. And union representatives at two Chevron Corp. (CVX) facilities filed yesterday to take a vote on such action.
Australia is one of the world’s largest producers and exporters of natural gas. Its LNG export capacity of 88.6 million tons a year was the largest in the world at the end of 2022.
Energy stocks followed gas and oil prices higher Wednesday. The sector as a whole was up 1.6% midday.
Semiconductor Stocks Slump for the Second Day
4 hr 42 min ago
The VanEck Semiconductor ETF (SMH) fell 1.7% Wednesday, its second day of losses as investors dial back their risk exposure and take profits after a run-up in semiconductor stocks.
The industry benchmark reached an all-time high of $160.62 on July 31, boosted by Nvidia Corp.’s (NVDA) 200% gain this calendar year. It has since slumped 6% to trade just under $151.
Shares of Nvidia were down 3.9% midday, making it one of the S&P 500’s worst performers. Broadcom Inc. (AVGO) stock, the VanEck ETF’s third-largest holding, lost 3.4%. And shares of Dow component Intel Corp. (INTC) fell 1.3%.
Penn Entertainment Shares Jump After $2 Billion Sportsbook Deal With Disney’s ESPN
5 hr 21 min ago
Penn Entertainment (PENN) shares surged over 11% in early trading on Wednesday after inking a $2 billion deal to rebrand and relaunch its sportsbook with Disney’s (DIS) ESPN.
As part of the deal, Penn agreed to sell its existing Barstool Sports brand back to founder Dave Portnoy and will launch a rebranded version of its sportsbook online with ESPN. ESPN Bet will debut in the fall of this year. Penn secured ESPN Bet’s exclusive right to trademark for 10 years, with an option to extend it for another 10.
Penn will pay $1.5 billion in cash to ESPN over the next decade and grant about $500 million worth of its shares. ESPN will also be able to designate a board member for Penn after three years.
Penn expects the deal to add about $500 million to $1 billion in annual long-term adjusted earnings potential in its interactive segment.
Shares of ESPN-parent Disney (DIS) were down 0.7% ahead of its earnings report after markets close.
-Fatima Attarwala
Oil Continues to March Higher
6 hr 15 min ago
Oil prices rose Wednesday morning to their highest level this year, as production cuts by Saudi Arabia and Russia squeeze global supply.
Futures contracts for West Texas Intermediate rose 1.3% to $84 a barrel, their highest since last November. Brent crude futures gained 1.2%, climbing to $87.15, a four-month high.
Oil prices steadily declined from April to June, when they bottomed out at $67. But OPEC+ production cuts—first announced in April—have reduced supply by about 3.66 million barrels a day.
At the same time, falling prices have led U.S. oil drillers to cut back on their own production. U.S. oil output is expected to fall for the first time this year in August, according to the Energy Information Administration.
That could spell trouble for U.S. consumers. The price of crude oil accounts for 44% of the price of gasoline, and motor fuels and gasoline account for about 6% of the Consumer Price Index.
Higher oil prices will put upward pressure and gasoline and, subsequently, inflation, complicating the Fed’s fight to bring price growth down to its 2% target.
WeWork Doubts Its Own Survival, Shares Crater
7 hr 24 min ago
The reluctance of workers to return to the office, its checkered financial history, and considerable losses have led flexible workspace provider WeWork (WE) to express in a regulatory filing Tuesday “substantial doubt” over its ability to remain in business. The company’s shares fell as much as 26% in early trading Wednesday.
WeWork incurred losses of $0.7 billion and had a negative cash flow from operating activities of $0.5 billion for the first six months of the year.
In its latest financials, the company admitted its membership this year had been less than expected. Its ability to remain in business depends largely on whether membership agreements are renewed.
While the company still owns many large commercial buildings around the world, the rise in remote work because of the pandemic and economic softness increased WeWork’s debt while constraining cash flows.
Other than increasing revenue through membership, WeWork could remain a going concern by limiting capital expenditure and seeking capital through debt or by issuing shares.
-Fatima Attarwala
Stocks Making the Biggest Moves Premarket
8 hr 20 min ago
Gainers:
- PENN Entertainment Inc. (PENN): Shares of the gaming company and casino operator gained 15% after it announced a $2 billion with Disney-owned ESPN to rebrand its online sportsbook as ESPN Bet while divesting its stake in media brand Barstool Sports. Shares of Disney (DIS) gained 1.4% premarket ahead of its earnings report this afternoon.
- Celsius Holdings (CELH): Shares of the energy drink maker gained 16% after the company reported a 111% increase in revenue in the second quarter. Earnings of $0.52 a share were more than quadruple the same quarter last year.
- Axon Enterprise Inc. (AXON): Shares of the Taser maker gained 13% after it reported second-quarter earnings per share of $1.11, nearly double what analysts were expecting.
Losers:
- Lyft Inc. (LYFT): The ride-hailing company’s stock jumped 14% in after-hours trading yesterday after it beat earnings estimates for the second quarter. It has since reversed course and is down 6% premarket.
- DraftKings Inc. (DKNG): Shares of the online sports betting company slipped 5% on the news of competitor PENN Entertainment’s deal with ESPN.
- WeWork Inc. (WE): The workspace provider’s stock plummeted 14% after it said in an SEC filing, “Substantial doubt exists about the company’s ability to continue as a going concern.”
5 Things to Know Before Markets Open
8 hr 41 min ago
Here’s what investors need to know to start their day:
- Shares of Penn Entertainment (PENN) surged more than 13% after striking a deal with ESPN to brand its sportsbook as ESPN Bet.
- Burdened by a tougher lending environment, shares of fintech company Upstart Holdings (UPST) plunged 19% in pre-market trading after it delivered a lower-than-expected forecast for its current quarter.
- Sony Group Corp. (SONY) raised its full-year guidance for sales by 6% and net income by 2% after it reported strong sales for its PlayStation 5 gaming system and its entertainment operations.
- Shares of ride-sharing service Lyft (LYFT) fell more than 7% in pre-market trading after it reported second-quarter earnings that narrowed its losses to $114.3 million from $377.2 million a year ago.
- Electric vehicle maker Rivian Automotive (RIVN) beat analyst forecasts for earnings while raising its full-year production outlook to 52,000 for the year, better than the 50,000 it had previously reported.
-Terry Lane
Stock Futures Up as Investors Wade Into Risk
9 hours ago
Futures contracts connected to the Dow Jones Industrial Average were up 0.2% in premarket trading.
S&P 500 futures gained 0.25%.
Nasdaq 100 E-mini futures were up 0.3%.
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