In premarket trading, several companies experienced significant movements in their stock prices. Eli Lilly’s stock rose by 2% after the pharmaceutical giant announced that its weight loss drug Zepbound showed potential in treating obstructive sleep apnea. ResMed, a company that makes devices to treat sleep-related breathing disorders, saw its shares drop nearly 4% in response to this news. Travelers, an insurance company, experienced a nearly 5% decline in its stock price after reporting an earnings and revenue miss for the first quarter, attributing the shortfall to elevated catastrophe losses.
On the other hand, United Airlines saw its stock price increase by 6% following its report of an adjusted loss for the first quarter that was lower than expected, along with revenue that beat analysts’ expectations. J.B. Hunt Transport Services, a transportation and logistics company, experienced an 8% decline in its shares after reporting an earnings and revenue miss for the first quarter, citing flat demand and weaker-than-expected domestic performance. ASML Holding, a Dutch semiconductor company, saw its U.S.-listed shares drop by 5% after reporting revenue and new bookings below consensus estimates.
Urban Outfitters, a retail company, experienced a 5% drop in its shares after being downgraded to underperform from hold by Jefferies, which noted a slowdown in foot traffic growth at the company’s branded stores. Omnicom, a communications company, saw its stock rise nearly 3% after reporting an earnings and revenue beat for the first quarter, with organic revenue growth exceeding analyst expectations. Autodesk, a software company, experienced a 5% drop in its stock price after announcing a further delay in its annual 10-K filing due to an ongoing internal investigation by its board of directors.
Alcoa, an aluminum company, saw its stock price rise nearly 3% after reports that President Joe Biden planned to propose tripling the China tariff rate on steel and aluminum imports during a visit to the United Steelworkers headquarters. E.l.f. Beauty’s stock rose by 2.6% following an upgrade to buy from hold by TD Cowen, which cited impressive new product introductions and the potential for revenue to double over the next three years. Ferrari’s stock gained 1.8% after Bernstein reiterated an outperform rating on the luxury sports car maker, stating that it is “beginning to master the electrification challenge.” Abbott Laboratories saw a slight decline in its shares despite exceeding first-quarter expectations and raising the midpoint of its full-year guidance.
Capri Holdings experienced a 1.5% drop in its shares after reports that the Federal Trade Commission was preparing to block its $8.5 billion takeover of Tapestry, the parent company of Coach and Kate Spade. Tapestry shares, however, rose by 1.8% in response to this news. Overall, these premarket movements in stock prices reflect a range of positive and negative reactions to earnings reports, product developments, and regulatory issues affecting various companies in different sectors.
