In midday trading, several companies made headlines for various reasons. Brinker International saw its stock drop by 12% after issuing a weaker-than-expected profit forecast for the full year and reporting disappointing fiscal fourth-quarter earnings. The company missed the StreetAccount consensus estimate for adjusted earnings per share and provided a lower-than-expected earnings per share outlook for fiscal 2025. On the other hand, Victoria’s Secret’s shares surged over 16% following the announcement of former Savage X Fenty CEO Hillary Super as the new CEO, along with better-than-expected preliminary second-quarter results. Flutter also experienced a jump of over 9% after reporting better-than-expected second-quarter revenue and raising its full-year guidance. Kellogg, which recently split into two public companies, also saw a 7.7% increase in its stock price after agreeing to be acquired by snackmaker Mars for about $36 billion.
Alphabet’s stock fell around 3.5% after Bloomberg News reported that the Department of Justice is considering breaking up the tech giant. The plan, if implemented, could target the company’s Android operating system and Chrome browser for divestment. This news caused a drop in Alphabet’s stock price. Arm Holdings, on the other hand, saw a 4.3% increase in its U.S.-listed shares after Intel sold its stake in the British chip designer. Intel’s focus on restructuring and cost cutting led to the sale of its stake in Arm Holdings. Cardinal Health’s stock moved over 5% higher following the health care company’s fiscal fourth-quarter results surpassing Wall Street’s expectations. The company reported higher earnings per share and revenue than analysts had anticipated and also raised its full-year earnings guidance.
Starbucks’ shares fell by 4% after a surge of 24.5% the previous day following the announcement of the replacement of its CEO with Chipotle CEO Brian Niccol. The stock was also upgraded by several firms, including Deutsche Bank and Stifel. In the biotech sector, Illumina’s stock gained 2.2% after being upgraded to buy from hold at TD Cowen. The firm believes that Illumina’s recent guidance reset and management change can help boost its share price. Nu Holdings, a Brazilian digital banking platform, saw a 4% increase in its shares after reporting second-quarter results that exceeded expectations. Both adjusted net income and revenue came in above the FactSet consensus estimate, leading to a positive reaction in the stock price.
In summary, the midday trading session saw a mix of positive and negative reactions from investors to various companies’ news and financial results. While some companies like Victoria’s Secret and Flutter experienced stock price increases due to positive announcements and better-than-expected financial performance, others like Brinker International and Alphabet saw declines in their stock prices following weaker forecasts and potential regulatory challenges. The reshuffling of leadership at companies like Starbucks and Illumina also impacted their stock prices, with analysts and investors reacting to the changes with upgrades and positive outlooks. Overall, the midday trading session reflected a dynamic and evolving market environment with a range of factors influencing stock prices.
