Customers exit an Abercrombie & Fitch store in San Francisco.
David Paul Morris | bloomberg | Getty Images
Check out which companies are making headlines in the midday trading.
Citigroup – Citigroup shares fell nearly 3%. The bank announced plans to spin off Mexican business Banamex through an initial public offering after its efforts to find a buyer for the unit failed.
Palo Alto Networks – The cybersecurity company saw its stock rise nearly 8%. The action came a day after Palo Alto Networks published a better-than-expected quarterly report and strong earnings guidance. The company reported adjusted earnings of $1.10 per share on revenue of $1.72 billion. Analysts polled by Refinitiv estimated earnings of 93 cents per share and $1.71 billion in revenue.
Netflix – Shares rose 1.2%. On Tuesday, the company began notifying customers of its password sharing rules in the US, and Oppenheimer said the crackdown on account sharing should help the stock.
Analog Devices – Analog devices are down 8% in the middle of the day. The semiconductor maker gave weaker-than-expected guidance for its fiscal third quarter, despite beating expectations for top and bottom earnings in the second quarter. Analog Devices expects adjusted earnings of about $2.52 per share in the third quarter, compared to analyst expectations of $2.65 per share, according to FactSet. The company expects revenue of about $3.10 billion, down from an estimate of $3.16 billion.
Tesla – Shares of electric car maker Elon Musk fell about 2% at midday. Disappointing quarterly results from Chinese competitor Xpeng sent electric vehicle shares lower. Xpeng erred in its revenue estimates and posted a bigger loss than analysts expected, according to Refinitiv. The company also expected a decrease in car deliveries.
Energy Stocks – Oil stocks rose on Wednesday. The move came a day after the Saudi energy minister announced possible cuts in OPEC+ production. The SPDR Energy Sector Selection Fund (XLE) rose 0.3%. Marathon Oil and APA are both up about 1%.
Semiconductor Stocks – Semiconductor stocks fell Wednesday. A spokesperson for China’s Ministry of Commerce spoke out against Japan’s restrictions on exporting chips to China the day before. Microchip Technology shares fell 6%. NXP Semiconductor fell 4%, while On Semiconductor fell 3%. Nvidia also fell 2% before its earnings announcement after the bell.
Moderna – Shares of the biotechnology company fell more than 4%. The drop marks a sharp reversal for the stock, which has emerged in recent days amid news of a new XBB variant wave of Covid cases in China. Officials in Beijing have reportedly estimated that this could lead to 65 million new weekly cases by the end of June.
Abercrombie & Fitch Shares of the apparel retailer rose 26% after the company reported fiscal first-quarter earnings and revenue that beat analyst estimates, according to Refinitiv. The apparel retailer also issued strong guidance for its fiscal second quarter and full year.
Urban Outfitters Shares of the retailer rose nearly 16%. On Tuesday, Urban Outfitters released a first-quarter financial report that beat expectations in top and bottom earnings. The company generated 56 cents of earnings per share on revenue of $1.11 billion. Analysts surveyed by Refinitiv put 35 cents of earnings per share on $1.09 billion in revenue. Barclays upgraded the stock to overweight from an equal weight following the earnings report.
Accolade – Shares jumped nearly 7% after upgrading to buy from neutral from Bank of America. The health benefits assistance company has a “steady growth engine,” the company said.
Stem – Stem shares rose 5%. Evercore ISI initiated coverage of the stock with an outperform rating, saying the energy storage company is a leader in a fast-growing market due to the rise in clean energy technologies. Stem is “well-positioned to capture significant market share,” the company said in a note on Tuesday, which is a “growth story.”
Corning – Shares rose 2% on the day after Corning announced it would raise prices for its glass products by 20%. The company said the price adjustment is intended to offset higher ongoing energy and materials costs. Corning said it expects demand to grow in the second half of 2023.
Kohl’s — The retail giant got a 5% increase in its shares after it reported unexpected first-quarter earnings on Wednesday and reaffirmed its outlook for the full year. The company said its stores have improved productivity and noted the continued momentum at Sephora at Kohl’s.
Agilent Technologies Shares of the laboratory technology company fell nearly 8%. On Tuesday, Agilent published guidance for earnings and revenue in its fiscal third quarter that were lower than expected, according to Refinitiv. However, the company did post cadences on the prior quarter’s top and bottom lines.
Intuit — Shares of the tax software company fell 7% on the day after Intuit released quarterly results. While Intuit’s third-quarter financial earnings came in above analyst estimates, the company reported a loss in revenue, according to Refinitiv data. The company’s earnings expectations for the current quarter also contradicted analysts’ expectations.
– CNBC‘s Samantha Sobin, Alex Haring, Yoon Lee, Brian Evans, Jesse Pound and Tanaya Machell contributed to reporting.
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