Welcome to our midday trading roundup, where we take a look at the companies making waves in the stock market. Here’s what’s been happening:
Semiconductor stocks took a hit during midday trading, with Nvidia dropping more than 6% ahead of its Wednesday earnings report. Super Micro Computer also shed nearly 10% despite a high price target issued by Rosenblatt. Advanced Micro Devices and Marvell Technology also saw declines of about 6% and 4% respectively.
On the other hand, Walmart’s shares climbed more than 3% and reached a new all-time high following the retailer’s earnings report. Walmart not only beat expectations for its holiday quarter but also announced its purchase of TV maker Vizio, causing Vizio shares to surge about 15%.
Elsewhere, Discover Financial saw its shares soar 14% after agreeing to be acquired by Capital One Financial in a $35.3 billion all-stock deal. Capital One, in turn, saw little change in its share prices. The merger is expected to help expand Capital One’s credit card offerings and its deposit base.
But not all companies saw positive movement. Caterpillar’s shares dropped more than 2% after being downgraded by Evercore ISI from outperform to in line. The firm recommended investors take some profits after the stock rallied more than 25% over the past year. Similarly, Home Depot’s shares inched lower by less than 1% after reporting a nearly 3% decline in quarterly sales compared to the previous year, despite surpassing Wall Street’s earnings and revenue expectations.
On a more positive note, Barclays’ U.S.-traded shares surged 11% following a major operational restructuring announcement, including cost-cutting efforts and a 1 billion pound share buyback plan.
In the airline sector, Alaska Air and Southwest Airlines saw their shares rise after Deutsche Bank upgraded them to buy from hold, citing an “improving domestic supply backdrop.” Southwest also received an upgrade from Bernstein to market perform.
In the healthcare industry, Medtronic’s shares advanced 2.5% after surpassing Wall Street estimates for both top and bottom lines in its fiscal third quarter and issuing higher-than-expected earnings guidance for the full year.
Lastly, food distributor US Foods’ shares rose nearly 1% following an upgrade to overweight from neutral by Piper Sandler, which cited the strength of the U.S. economy as a driving factor.
Overall, it was a mixed day for stocks, with some industries seeing positive movement while others faced challenges. Stay tuned for more updates as the market continues to evolve.
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