Title: Stocks React to Earnings Reports and Analyst Coverage in Midday Trading
Subtitle: Amazon Faces Antitrust Charges, Wells Fargo and Goldman Sachs see Decline
San Bruno, California – In midday trading today, various companies faced both positive and negative reactions from investors following earnings reports and analyst coverage. Here are some of the highlights:
Cintas, a leading corporate apparel company, experienced a 4.8% drop in shares after the announcement of its 2024 fiscal first-quarter earnings. The company reported $3.70 in earnings per share, surpassing analysts’ consensus estimates of $3.67 per share. Despite beating revenue forecasts of $2.34 billion, Cintas’ EPS and revenue predictions for the full year fell below market expectations.
On the positive side, image-sharing platform Pinterest saw its shares rise by nearly 1% as HSBC initiated coverage of the stock with a buy rating. HSBC praised Pinterest’s management team, product fit for shopping, and its unique capital-light strategy to enter social commerce.
United Natural Foods, a food company, faced a significant setback as its shares sank 24% following a weak earnings forecast for the upcoming year. The company stated that profitability headwinds led to its guidance falling short of analysts’ estimates. While analysts had predicted earnings of $1.94 per share, United Natural Foods’ forecast ranged from a loss of 88 cents to earnings of 38 cents per share.
Electric vehicle maker Fisker enjoyed a 15% surge after Bank of America initiated coverage of its shares with a buy rating. The bank identified Fisker as a company offering pure-play exposure in a rapidly growing market.
Bank stocks, including Wells Fargo, JPMorgan, Goldman Sachs, and Morgan Stanley, experienced declines after JPMorgan Chase CEO Jamie Dimon warned of potential interest rate hikes by the Federal Reserve to counter inflation. Wells Fargo and Goldman Sachs saw their shares decline by 1.7% and 1.2%, respectively, while Morgan Stanley and JPMorgan each lost roughly 1%.
In other news, SiriusXM shares slipped 4% after Liberty Media proposed combining the two corporate structures into one entity. DraftKings, a sports betting stock, enjoyed a 3% increase in shares as JPMorgan upgraded its rating to overweight, citing an attractive entry point for investors due to recent underperformance. Barclays, a major bank, saw its U.S.-listed shares gain 2.7% following an upgrade from Morgan Stanley, which highlighted an improved revenue outlook and growth potential in U.S. credit card services.
Lastly, e-commerce giant Amazon faced a 2.7% drop in shares due to antitrust charges filed by the Federal Trade Commission and 17 state attorneys general. The lawsuit alleges that Amazon utilizes its “monopoly power” to inflate prices and stifle competition from rivals.
This article includes reporting contributions from CNBC’s Hakyung Kim, Alex Harring, Brian Evans, Samantha Subin, and Yun Li.
Disclaimer: The information provided above is based on market data at the time of publication and is subject to change. Investors are advised to conduct further research and seek professional advice before making any investment decisions.