In midday trading, several companies made headlines. Cintas shares fell 4.8% after the company reported its fiscal first-quarter earnings for 2024. While Cintas exceeded analysts’ consensus estimates for earnings per share and revenue, its lower-end predictions for EPS and revenue fell short of analysts’ estimates. On the other hand, Pinterest saw a 1% rise in its stock price after HSBC initiated coverage of the image-sharing platform with a buy rating. HSBC believes that Pinterest has the right management team in place and a capital-light strategy that positions it well for social commerce.
Meanwhile, United Natural Foods experienced a 24% decline in shares following its forecast for lower-than-expected earnings per share and adjusted EBITDA for the coming year. The company cited profitability headwinds as the reason for the downward revision. Conversely, Fisker, an electric vehicle maker, saw a 15% increase in its stock price after Bank of America initiated coverage with a buy rating. The bank believes that Fisker offers pure-play exposure in a growing market.
Bank stocks, including Wells Fargo, JPMorgan, and Goldman Sachs, declined after JPMorgan Chase CEO Jamie Dimon warned that the Federal Reserve could raise interest rates further to combat inflation. This led to overall bearish sentiment in the banking sector. Additionally, SiriusXM shares slipped 4% following a proposal from Liberty Media to combine the two companies’ corporate structures. Lastly, DraftKings’ shares jumped nearly 3% after JPMorgan upgraded the sports betting stock to overweight from neutral, citing an attractive entry point for investors. Barclays’ U.S.-listed shares also rose 2.7% after Morgan Stanley upgraded the bank to overweight, highlighting improved revenue outlook and potential growth in U.S. credit cards.
Amazon, however, faced some challenges as its shares dropped 2.7% after the Federal Trade Commission and 17 state attorneys general filed an antitrust lawsuit against the e-commerce giant. The suit alleges that Amazon leverages its monopoly power to raise prices and stifle competition.