Stocks make the biggest moves at midday: Twitter, Tesla and more
Kaper Pempel | Reuters
Find out which companies are making headlines in the midday business.
Twitter – Twitter shares rose 1.4% after jumping earlier on news that Elon Musk had offered $54.20 a share to buy the social media company and take it private. Earlier this month, the Tesla CEO unveiled a 9.2% stake in Twitter.
Goldman Sachs – The bank’s shares erased earlier gains and traded down 0.8% even after its first-quarter results beat expectations. Goldman traders were able to handle a spike in market volatility caused by the war in Ukraine. The bank’s fixed income desk generated $4.72 billion in revenue in the first quarter, driven by strong activity in currencies and commodities, the bank said.
Morgan Stanley – Shares of the New York-based bank rose about 0.8% after the company reported first-quarter earnings and revenue that beat Wall Street expectations. The bank recorded higher-than-expected revenue from equity and fixed-income trading amid volatile markets and higher completed M&A deals.
Wells Fargo – Shares fell about 5% after the bank posted revenue below expectations. A slowdown in its mortgage banking arm amid rising interest rates weighed on results. Wells Fargo, however, beat earnings expectations, releasing $1.1 billion from its credit reserves.
UnitedHealth Group – Shares of the health insurance giant rose 0.2% after the company beat estimates on first-quarter results. UnitedHealth reported $5.49 in earnings per share on $80.1 billion in revenue. Analysts polled by Refinitiv had forecast $5.38 in earnings per share on $78.79 billion in revenue. The total number of clients served by UnitedHealth increased by 1.5 million year-over-year.
Rite Aid – Pharmacy stock was down about 0.7%. Rite Aid reported an adjusted loss of $1.63 per share for its fiscal fourth quarter. Rite Aid also announced a cost-cutting program, which includes closing 145 unprofitable stores.
Nike – Shares of the footwear and apparel retailer rose 4.5%. The move comes as UBS reiterated the action as a buy and said it was “very bullish” as demand in North America continues to resist the current environment.
IBM — Shares of IBM edged up 0.8% after Morgan Stanley overweight the stock and said the company was a good “place to hide” in the current economic environment. The bank also raised its price target in tech stocks.
Western Digital, Seagate Technology – Shares of hard drive makers fell 2.7% and 3.3%, respectively, after Susquehanna Financial downgraded both stocks on fears of weaker demand this year next. The firm downgraded Western Digital to “neutral” and Seagate to “negative”.
Tesla – The stock of electric vehicles fell 3.6% after its CEO, Elon Musk, revealed that he wanted to buy Twitter and make it a private company.
Rent The Runway – Shares of the fashion rental company fell 3.8% after reporting a weaker-than-expected loss and beating prior-quarter revenue estimates.
– CNBC’s Jesse Pound, Yun Li and Hannah Miao contributed reporting