Customers exit an Abercrombie & Fitch store in San Francisco, California.
David Paul Morris | Bloomberg | Getty Images
Check out the companies making headlines in midday trading.
Citigroup: Shares of Citigroup fell nearly 3%. The bank announced plans to spin off its Mexico Banamex business through an initial public offering after its efforts to find a buyer for the unit failed.
Palo Alto Networks: The cybersecurity company saw its shares rise nearly 8%. The action came a day after Palo Alto Networks posted 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 had 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 U.S. Oppenheimer said the crackdown on account sharing should help the stock.
Analog Devices: Analog devices were down 8% in midday trading. The semiconductor manufacturing company gave weaker-than-expected guidance for its fiscal third quarter, despite beating expectations on top and bottom-line results in its second quarter. Analog Devices expects adjusted earnings of about $2.52 per share in the third quarter, compared with analysts’ forecasts of $2.65 per share, according to FactSet. The company expects revenue of about $3.1 billion, down from the estimate of $3.16 billion.
Tesla: Shares of Elon Musk’s electric vehicle maker were down about 2% at midday. Disappointing quarterly results from Chinese rival Xpeng sent electric vehicle stocks lower. Xpeng missed revenue estimates and posted a wider loss than analysts expected, according to Refinitiv. The company also forecast a decline in vehicle deliveries.
Energy stocks: Shares in oil companies rose on Wednesday. The move came a day after Saudi Arabia’s energy minister hinted at possible OPEC+ production cuts. The Energy Select Sector SDPR Fund (XLE) rose 0.3%. Marathon Oil and APA both gained about 1%.
Semiconductor Stocks: Semiconductor stocks were lower on Wednesday. A spokesman for China’s Ministry of Commerce spoke out against Japan’s chip export restrictions to China a day earlier. Shares of Microchip Technology fell 6%. NXP Semiconductors fell 4%, while On Semiconductor fell 3%. Nvidia also declined 2% ahead of its earnings announcement after the bell.
Moderna — Shares of the biotech company fell more than 4%. The drop marks a sharp reversal for the stock, which has appeared in recent days amid news of a new XBB variant wave of Covid cases in China. Beijing officials estimate that this could lead to 65 million new cases a week by the end of June.
Abercrombie & Fitch: Shares of the apparel retailer soared 26% after the company reported fiscal first-quarter earnings and revenue that beat analysts’ estimates, according to Refinitiv. The apparel retailer also issued strong guidance for the fiscal second quarter and full year.
Urban Outfitters: Shares of the retail company rose about 16%. On Tuesday, Urban Outfitters issued a first-quarter fiscal report that beat expectations at both the top and bottom lines. The company generated 56 cents in earnings per share on revenue of $1.11 billion. Analysts polled by Refinitiv had noted earnings of 35 cents per share on revenue of $1.09 billion. Barclays upgraded the stock to overweight from equal weight after the earnings report.
Recognition: Shares rose nearly 7% after an upgrade to buy from neutral by Bank of America. The company said the healthcare company has a “steady growth engine.”
Stem: Stem shares rose 5%. Evercore ISI initiated coverage on the stock with an outperform rating, saying the energy storage company is a leader in a fast-growing market given the rise of clean energy technologies. The firm said in a note on Tuesday that Stem is “well positioned to capture significant market share” and is a “growth story”.
Corning: Shares gained 2% on the day after it announced it would raise prices for its display glass products by 20%. The company said the price adjustment is intended to offset ongoing high energy and materials costs. Corning said it expects demand to grow in the second half of 2023.
Kohl’s: The retail giant’s shares rose 5% after it reported a surprise first-quarter profit on Wednesday and reaffirmed its full-year outlook. The company said its stores have improved productivity and noted sustained momentum at Sephora at Kohl’s.
Agilent Technologies: Shares of the lab technology company fell nearly 8%. On Tuesday, Agilent issued lower-than-expected fiscal third-quarter earnings and revenue guidance, according to Refinitiv. However, the company posted beats on the top and bottom lines from the previous quarter.
Intuit: Shares of the tax software company fell 7% a day after Intuit reported quarterly results. While Intuit’s fiscal third-quarter earnings came in above analysts’ estimates, the company reported a revenue miss, according to data from Refinitiv. The company’s earnings forecasts for the current quarter also missed analysts’ expectations.
– CNBC‘s Samantha Subin, Alex Harring, Yun Li, Brian Evans, Jesse Pound, and Tanaya Macheel contributed reporting
