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Stock futures were trading mixed on Tuesday amid Middle East tensions ahead of Powell's speech due later today.
Here are some of Tuesday's biggest stock movers:
Biggest stock gainers
- Telefonaktiebolaget LM Ericsson (ERIC) shares surged over 7% following the announcement of a robust Q1 adjusted profit of SEK0.77, compared to SEK0.45 a year ago. This profit included a one-off gain of 1.9B crowns related to the resolution of a commercial dispute. The company predicts sales to stabilize in the second half of the year, due to recent contract wins and the normalization of customer inventory levels in North America. For Q2, Ericsson expects Networks gross margin, excluding restructuring costs, to be between 42-44%. Margins are expected to benefit from an improved business mix in the latter part of the year. Ericsson remains focused on improving cash flow.
- UnitedHealth’s (UNH) stock soared 7% after exceeding market expectations in Q1, despite a cyberattack. The healthcare giant revised down its FY2024 EPS forecast to reflect the impact of the cyberattack and the Brazil sale. The group now expects GAAP EPS of $17.60 to $18.20 per share for the year, much below the prior outlook of $26.20 to $26.70. However, it maintained its adjusted EPS forecast of $27.50 to $28.00 per share, which is in line with the consensus of $27.53.
- Shares of Macatawa Bank (MCBC) surged 38% after Wintrust Financial (WTFC) agreed to acquire the bank in an all-stock deal valued at approximately $510.3M. This acquisition is expected to aid Wintrust in expanding its presence in western Michigan.
- Cullinan Oncology (CGEM) surged 20% after the biotech firm announced its intention to advance the development of CLN-978 for the treatment of autoimmune diseases, starting with systemic lupus erythematosus (SLE). The company revealed its plan to submit an investigational new drug application for studying CLN-978 in SLE patients in the third quarter of 2024, with further plans for its development in other autoimmune conditions. Additionally, CGEM has halted enrollment in its B-NHL study to prioritize the ongoing development of autoimmune treatments.
- Intra-Cellular Therapies (ITCI) shares rose more than 23% following the positive outcome of a late-stage study evaluating lumateperone 42 mg as an adjunctive therapy to antidepressants for major depressive disorder. The study achieved its primary and secondary goals, demonstrating statistically significant efficacy from as early as Week 1 and maintaining improvements throughout the study in both primary and key secondary endpoints. Patients reported an improvement in depressive symptoms, as measured by the Quick Inventory of Depressive Symptomatology Self-Report. Additionally, lumateperone 42 mg was found to be generally safe and well-tolerated in the study.
Biggest stock losers
- Tesla's (TSLA) shares dropped as much as 9%, dipping below the crucial $500B mark, after CEO Elon Musk told employees in an email that the company is eliminating more than 10% of its global workforce. This development has reignited concerns about the company's growth prospects. The share price hit a low of $155, resulting in a market capitalization of approximately $490B.
- Shares of Live Nation Entertainment (LYV) plunged about 8% amid reports that the Justice Department is preparing to file an antitrust lawsuit against the concert promoter as soon as next month. According to a report by the Wall Street Journal on Monday, the regulator is likely to assert that Live Nation (LYV) leveraged its dominant position in a manner that suppressed competition in the ticketing of live events.
- PacBio's (PACB) stock plummeted about 30% after the company announced disappointing preliminary Q1 revenue of $38.8M, missing analyst expectations of $50.27M, and showing flat growth compared to last year's $38.9M. The shortfall is attributed to delays in instrument purchases and softness in consumable shipments. PacBio expects FY2024 revenue in the range of $170M to $200M, significantly lower than the consensus of $238.78M. The company admitted it's unlikely to reach its long-term target of $500M by 2026. However, the company remains optimistic, expecting Q2 and the second half of the year to improve as delayed deals close and consumable sales rebound.
More on related stocks:
- Ericsson: A Risky Low-Valuation Play To Avoid
- Live Nation: What A Performance For FY23, Reiterate Long
- Telefonaktiebolaget LM Ericsson GAAP EPS of SEK0.77, revenue of SEK53.3B
- Live Nation drops on reports Justice Dept. may file antitrust lawsuit next month
- UnitedHealth in charts: Segment revenue growth pace nearly halves Y/Y in Q1