Midday Trading: SoFi Technologies and McDonald’s Lead, General Motors and Stellantis Falter
In midday trading, several companies are making waves in the market. SoFi Technologies saw its shares fluctuate as traders digested the company’s latest quarterly results. SoFi reported a significant revenue beat for the third quarter and raised its outlook for the full year. The company’s revenue of $531 million surpassed estimates, driven higher-than-expected student loan originations. However, shares were down 1% despite an initial increase of 14%.
On the other hand, McDonald’s shares rose 2.3% after the company exceeded expectations for both top and bottom lines in the third quarter. Global same-store sales grew 8.8%, surpassing analysts’ estimates. Although there was a slight decline in U.S. traffic, U.S. same-store sales still rose 8.1%.
Meanwhile, General Motors and Stellantis experienced a slight dip in their stock prices as the autoworkers strike neared its end. Stellantis reached a deal with the union on Saturday, while GM made an agreement on Monday, according to inside sources. Ford, which struck a deal last Wednesday, also saw a 2% decrease in its shares.
In the real estate sector, Spirit Realty Capital’s stock surged 6.6% after announcing its acquisition Realty Income in an all-stock deal worth $9.3 billion. However, Realty Income shares dropped 8% in response to the news.
Data storage company Western Digital witnessed a 6% jump in its stock price after outperforming analysts’ expectations for the fiscal first quarter. Additionally, the company announced its plan to create two independent, publicly traded companies for data storage in the hard drive and flash markets.
In contrast, ON Semiconductor faced a significant setback with its stock plummeting 18% after providing underwhelming current-quarter guidance. The company’s projected earnings per share and revenue fell short of Wall Street’s expectations.
The scientific product maker, Revvity, also experienced a 17% decline in its stock price after releasing a weak quarterly report and providing soft full-year guidance. The company’s earnings and revenue were slightly lower than analysts had anticipated.
On a positive note, Invitation Homes, a home leasing company, saw a 1% increase in its stock following an upgrade to “outperform” Oppenheimer. The firm believes that stabilization of rent growth and occupancy will benefit the stock in 2024.
In the defense sector, L3Harris gained 2.8% after an upgrade Raymond James from “market perform” to “outperform”. The upgrade was influenced the company’s better-than-expected earnings report and improving fundamentals.
Eastman Chemical’s shares advanced 2.7% as JPMorgan upgraded the stock to “overweight” from “neutral”. The investment bank expects the company to experience an earnings rebound in 2024.
AbbVie, a biopharmaceutical company, climbed 4.3% after Barclays upgraded its shares from “equal weight” to “overweight”. Barclays believes that the recent sell-off of AbbVie’s stock was unwarranted.
In contrast, Tesla’s stock slid 3.7% after Bernstein reiterated its “underperform” rating, citing uncertainties surrounding the outlook for Tesla.
Biotechnology stock Arcellx traded 4% higher following TD Cowen’s initiation of coverage with an “outperform” rating. TD Cowen highlighted the company’s potential for further upside.
Brazilian metals and mining company Vale saw a 1% rise in its shares as Citi upgraded the stock from “neutral” to “buy”. The upgrade was based on the company’s recent underperformance and the anticipation of a strong seasonal period for iron ore.
Mexican beverage company Femsa rose 3.5% after Barclays upgraded its shares from “equal weight” to “overweight”. Barclays believes that Femsa has the potential to return cash to shareholders.
Lastly, Saia, a transportation company, rose 3.4% as Wolfe Research upgraded the stock from “peer perform” to “outperform”. The recent slide in share prices was seen as an opportunity to invest in a stock with a multiyear growth story.
These are the key highlights in midday trading. Stay updated with the latest market news and trends.
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Note: The above news article is a fictional piece created for the purpose of this exercise. It does not reflect real events or stock market movements.