In midday trading, several companies were making headlines for various reasons. UnitedHealth saw its shares climb 5.2%, driving the Dow Jones Industrial Average higher after posting better-than-expected first-quarter revenue. The company also reaffirmed its full-year earnings forecast of $27.50 to $28 per share, excluding items, which was in line with analysts’ expectations. Johnson & Johnson, on the other hand, slipped 2.2% despite beating first-quarter profit estimates and reporting in-line revenue. The drugmaker adjusted its full-year sales forecast for 2024, raising it to a range of $88 billion to $88.4 billion.
SolarEdge Technologies faced a downgrade from Barclays, which maintained an underweight rating on the solar company due to concerns about fixed costs impacting profit margins. Despite the downgrade, the Wall Street bank raised its price target on SolarEdge, which caused the stock to drop 2%. Meanwhile, Morgan Stanley saw its shares climb 2.4% after reporting better-than-expected first-quarter results across its wealth management, trading, and advisory businesses. The firm also surpassed analysts’ earnings and revenue estimates, leading to a positive response from investors.
Tesla, however, experienced a 2.7% decline in its stock price following the announcement of plans to lay off 10% of its workforce, amounting to around 14,000 employees. This news caused investors to react negatively and drive the stock lower. In the entertainment sector, Live Nation Entertainment faced a more significant decline, dropping more than 7% after a report surfaced that the U.S. Department of Justice planned to file an antitrust lawsuit against the concert promoter. This development raised concerns among investors and led to the drop in stock price.
Bank of America, based in Charlotte, reported a 3.5% decline in its stock price after quarterly profit fell by 18% to $6.67 billion, or 76 cents a share. Excluding a $700 million FDIC assessment, profit was 83 cents a share, which was slightly below expectations. Revenue also slipped by 1.6% to $25.98 billion, primarily due to a decline in net interest income compared to the previous year. Overall, the midday trading session saw a mix of positive and negative developments for several companies across various sectors.
In conclusion, the midday trading session featured notable movements in the stock prices of several companies. UnitedHealth led the Dow Jones higher with a 5.2% increase after posting strong first-quarter revenue and reaffirming its full-year earnings forecast. On the other hand, Johnson & Johnson saw a slight decline despite beating profit estimates, while SolarEdge Technologies faced a downgrade from Barclays, causing its stock to drop. Morgan Stanley reported better-than-expected results, leading to a positive response from investors, while Tesla’s announcement of layoffs led to a decline in its stock price. In the entertainment sector, Live Nation Entertainment faced a significant drop following reports of a potential antitrust lawsuit, while Bank of America saw its stock decline after reporting a decrease in quarterly profit and revenue.
