Hey there, savvy investors! Let’s take a look at the latest market news and the companies that are making headlines in midday trading.
First up, Macy’s is in the spotlight after the department store giant rejected a $5.8 billion proposal to go private, causing its shares to rise by 2%. The rejection came after concerns were raised over deal financing and valuation by Arkhouse Management and Brigade Capital Management.
On the flip side, Archer-Daniels-Midland is not faring so well, with shares dropping over 22% due to weak fourth-quarter earnings guidance and an investigation into the company’s accounting practices. Goldman Sachs even downgraded their shares, adding to the company’s challenges.
And in the solar industry, SolarEdge Technologies announced plans to cut 16% of its workforce, causing its shares to rise by more than 3%. The company hopes that this move will help trim operating expenses.
In the financial services sector, B. Riley Financial is facing a tough time after reports emerged that the U.S. Securities and Exchange Commission is investigating the company’s deals with a client connected to securities fraud. This news sent their shares tumbling by as much as 8%.
Meanwhile, in the airline industry, Spirit Airlines and JetBlue Airways made waves after their planned merger was blocked by a federal judge. This caused Spirit Airlines’ shares to rally nearly 12%, while JetBlue saw a more modest increase of 1.4%.
In the world of Brazilian payments, StoneCo’s shares rose by more than 6% following an upgrade to a buy rating from Goldman Sachs. The bank cited superior revenue and earnings growth outlook as the reasons behind the upgrade.
On the pharmaceutical front, Gilead Sciences took a hit with a 10% plunge after its lung cancer drug Trodelvy failed to meet its primary endpoint in a phase 3 trial. The company is now looking to identify patients who could still benefit from the drug.
Railroad companies Union Pacific and Norfolk Southern received a boost after Bernstein upgraded their stocks to outperform from market perform, citing an attractive entry point and a positive outlook for the freight cycle.
Transportation stock J.B. Hunt gained 3.1% after UBS upgraded their shares to buy from neutral, based on the expectation of improved intermodal margin performance and a stronger freight cycle.
In the tech sector, Advanced Micro Devices saw a 4% drop in shares after a downgrade from Northland Capital Markets, which cited an inflated valuation and potential slowing pricing and demand.
Moving to cybersecurity, SentinelOne’s shares increased by 5% after an upgrade from BTIG to buy from neutral, highlighting the security market’s higher growth potential as a catalyst for the positive change.
And finally, in the world of beverages, Vita Coco, the coconut water company, faced a more than 5% decline after being downgraded by William Blair. Ongoing shipping conflicts in the Red Sea and the Suez Canal were cited as factors that could pressure the company’s profits.
Stay informed and keep an eye on these companies and their stocks as the market continues to evolve! Thank you to CNBC’s team for their contributions to this report.
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