In midday trading, Tesla shares dropped more than 6% after reporting an 8.5% decline in deliveries in the first quarter. GE Vernova saw its shares jump more than 3% on its first day of trading on the NYSE after being spun off from General Electric, with shares of GE Aerospace also gaining roughly 1%. Oilfield equipment maker ChampionX saw its shares surge over 8% following an agreement to be acquired by SLB for $7.7 billion in an all-stock deal, expected to close by the end of 2024. However, shares of PVH, the parent company of Calvin Klein and Tommy Hilfiger, tumbled more than 23% after issuing weak revenue guidance for the first quarter and full year, citing a challenging macroeconomic environment and slow growth in Europe. Health insurance managed care stocks such as Humana, UnitedHealth, and CVS fell after the Center for Medicare and Medicaid Services announced a 3.7% rate increase for the 2025 calendar year, disappointing some investors who had expected a larger hike.
Entertainment company Endeavor saw its shares rise over 2.5% after a private equity firm agreed to acquire the company in a $13 billion deal. However, alternative asset manager Blackstone’s shares slipped 1% following a downgrade by UBS to neutral, citing potential pressure from a slow recovery in the real estate market. Solar tracking company Nextracker’s shares dropped 4.6% after being downgraded by Barclays, although the bank still considers it a core holding for investors. Healthcare apparel maker Figs saw its shares decline 6.2% after a Bank of America downgrade to underperform, citing a tough retail environment. Pet goods retailer Petco also saw its stock drop 6.7% after a downgrade by Bank of America, which cited lower market share. Homebuilder D.R. Horton’s shares slipped 3.7% after being downgraded by Wedbush, which also downgraded several other homebuilders to underperform, citing a potential seasonal stock price decline into the summertime.
Overall, the stock market saw a mix of gains and losses among various companies on the day. While some companies like ChampionX and Endeavor saw positive movement in their shares following acquisition deals, others like PVH and health insurance managed care stocks experienced declines due to weak financial guidance or lower-than-expected rate increases. The downgrades of companies like Blackstone, Nextracker, Figs, Petco, and D.R. Horton by various financial institutions also contributed to the mixed performance of the market. Investors will continue to monitor these developments and adjust their strategies accordingly based on company-specific news and broader market trends.
