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Stock Market Update: Netflix, Tesla, American Airlines, IBM, Johnson & Johnson, Abbott Laboratories, Discover Financial Services, Zion Bancorp, Travelers, Estee Lauder, Freeport-McMoRan, Genuine Parts, MarketAxess, Equifax
Netflix dropped more than 8% after reporting mixed quarterly results. The streaming giant beat on earnings per share for the second quarter, but its revenue of $8.19 billion fell short of the $8.30 billion expected from analysts.
Tesla shares tanked more than 6% despite topping Wall Street's top-and-bottom line expectations. The electric vehicle maker saw a drop in operating margins due to recent price cuts and incentives.
American Airlines shed more than 6% even after posting strong quarterly results and raising its profit outlook for 2023. The airline reported adjusted earnings of $1.92 a share on $14.06 billion in revenue.
IBM climbed more than 3% after reporting earnings in the second quarter that topped analysts' estimates. The company expanded its gross margin, although it did post a revenue miss due to a slump in the infrastructure division.
Johnson & Johnson
Johnson & Johnson's stock jumped 6% after the health care company posted second-quarter revenue and adjusted earnings that surpassed Wall Street's expectations. The company also raised its full-year guidance.
Shares of Abbott Laboratories rose nearly 4% after the company beat estimates on the top and bottom lines for the second quarter. The health care products company reported adjusted earnings per share of $1.08 on $9.98 billion of revenue.
Discover Financial Services
Shares of Discover Financial Services tumbled 14% after the company's second-quarter results missed analysts' estimates on both the top and bottom lines. The company also disclosed that it is undergoing a probe from the Federal Deposit Insurance Commission.
Shares of Zion Bancorp jumped 8.3% after the regional bank's second-quarter earnings matched estimates. However, the bank's net interest income came below expectations.
The insurance company Travelers gained 3% following its second-quarter earnings announcement. Its adjusted earnings came in at 6 cents per share, while its revenue of $10.32 billion topped expectations.
Estee Lauder's shares dropped 3% after being downgraded by Barclays. The firm cited concerns of a muted China recovery and pressure on medium-term margins.
Shares of Freeport-McMoRan gained more than 3% after the company announced its quarterly earnings. The mining company posted 35 cents earnings per share on $5.74 billion in revenue.
Genuine Parts lost almost 7% after posting its second-quarter results. While the company's earnings and revenue beat analysts' expectations, its revenue across its automotive and industrial segments missed Wall Street's estimates.
The electronic trading platform MarketAxess rallied 5.6% after releasing its second-quarter results. While revenue and earnings per share came in higher than expected, its adjusted earnings were lower than analysts' estimates.
Shares of Equifax plunged almost 10% after the company's quarterly earnings report fell short of expectations.Overall, this stock market update reflects the volatile nature of the market and the importance of quarterly earnings reports. While some companies like Johnson & Johnson and Abbott Laboratories performed well and exceeded expectations, others like Netflix, Discover Financial Services, and Equifax faced disappointments and saw their stock prices decline significantly. For new businesses considering entering the market, this update serves as a reminder of the challenges they may face and the need to carefully manage financial performance. One key takeaway is the impact of meeting or missing revenue expectations. Even if a company beats earnings per share estimates, falling short on revenue can result in significant stock price declines, as seen with Netflix. This highlights the importance of not only managing costs but also driving consistent revenue growth. Additionally, market dynamics and external factors can heavily influence a company's performance. Tesla, for example, experienced a drop in operating margins due to recent price cuts and incentives. This suggests that businesses operating in highly competitive industries need to carefully balance pricing strategies with profit margins. Finally, investor sentiment and market reactions can be influenced by external events and market trends. Estee Lauder's downgrade by Barclays, citing concerns about a muted China recovery, led to a decline in its stock price. This demonstrates the importance of monitoring market sentiment and responding to changing conditions as a new business. In conclusion, new businesses should take note of the lessons learned from this stock market update. Careful management of financial performance, meeting revenue expectations, adapting to market dynamics, and monitoring market sentiment are all crucial factors for success in a competitive and volatile market environment. Article First Published at: https://www.cnbc.com/2023/07/20/stocks-making-the-biggest-moves-midday-netflix-american-airlines-johnson-johnson-and-more.html