Several companies made headlines in midday trading, with Boeing’s shares ticking up 1.6% after the announcement that CEO David Calhoun would step down at the end of 2024, along with board chairman Larry Kellner. Medical technology company Masimo saw a nearly 5% climb after announcing a potential spinoff of its consumer business, leading Wells Fargo to upgrade the stock. Chip stock Super Micro Computer also jumped nearly 10% after JPMorgan initiated coverage with an overweight rating and a price target of $1,150. Steel producer Cleveland-Cliffs traded higher by 1.4% after securing funding from the Department of Energy for decarbonization technology projects.
Semiconductor stocks were on the rise, with Micron Technology adding 7%, Nvidia jumping 1%, and Arm adding nearly 4%. The VanEck Semiconductor ETF ticked up 0.2%. Disney saw a more than 2% increase after Barclays upgraded it to overweight and mentioned potential further upside. Foot Locker shares jumped 7% following an upgrade to outperform from Evercore, citing the company’s turnaround efforts and growth reinvestments. Struggling automaker Rivian, however, saw a 1% decline after a downgrade to neutral from buy at Mizuho, with the stock down more than 50% for the year.
GameStop shares popped 12% ahead of its fourth-quarter earnings, with Wedbush maintaining an underperform rating but noting potential profitability due to cost discipline and high-margin software sales. Special purpose acquisition company Digital World Acquisition Corp. surged 26% after shareholders approved a merger with former President Donald Trump’s social media company Trump Media & Technology Group, which owns Truth Social. Trump Media could begin trading under the ticker DJT. United Airlines, on the other hand, saw a 4% drop after Reuters reported that the U.S. Federal Aviation Administration would increase scrutiny following recent safety incidents.
Overall, the market saw a mix of positive and negative movements among various companies in midday trading. From leadership changes at Boeing to potential spinoffs at Masimo and investment upgrades for Super Micro Computer and Disney, there were several notable developments driving stock prices. Semiconductor stocks also saw gains, while struggles continued for companies like Rivian and GameStop facing industry challenges. The approval of the merger between Digital World Acquisition Corp. and Trump Media & Technology Group marked a significant event, while United Airlines faced increased scrutiny from regulatory authorities. Investors will continue to monitor these developments and their impact on the market moving forward.
