Stocks fell Monday after economic data signaled higher prices and after Federal Reserve Chairman Jerome Powell‘s television interview where he said the central bank was approaching the “question of when to begin to reduce interest rates carefully.”
These stocks made moves on Monday:
Boeing
said it would have to rework about 50 undelivered 737 MAX jets after supplier
Spirit AeroSystems
found two misdrilled holes on some fuselages. Boeing said the issue could delay some near-term 737 deliveries but that the “potential condition is not an immediate flight safety issue” and all 737s can continue flying. It’s the latest production problem for Boeing since a door plug blew out on a 737 MAX 9 jet flown by Alaska Airlines, leading to an emergency landing in Portland, Ore., last month. Boeing shares closed down 1.3%, while Spirit AeroSystems fell 4.7%.
Drug manufacturer
Catalent
rose 9.7% to $59.82 after agreeing to be acquired by Novo Holdings for $63.50 a share in cash, a 16.5% premium to Catalent’s closing price of $54.51 on Friday. The transaction values Catalent at $16.5 billion on an enterprise-value basis. Novo Holdings is the controlling shareholder of
Novo Nordisk.
Tesla
declined 3.7%. The Wall Street Journal reported over the weekend that CEO Elon Musk took drugs with some board members of the electric-vehicle company. The Journal cited people who have witnessed the drug use and others with knowledge of it.
Meta Platforms
fell 3.3% after shares of the parent company of Facebook and Instagram surged 20% on Friday to a closing record of $474.99 following an outlook that surpassed Wall Street expectations and an announcement that it planned for its first-ever dividend. Meta added $204.5 billion in market value on Friday, the biggest one-day gain by any U.S. company in history.
Nvidia
rose 4.8% to $693.18. It set a closing record high of $661.60 on Friday. Driving the gains were continued high demand for Nvidia’s graphics-processing-units for training artificial-intelligence systems. Meta,
Microsoft,
and
Amazon.com
reported strong earnings last week and said they were committed to further AI investments.
Shares of
McDonald’s
fell down 3.7% after the fast-food giant reported fourth-quarter revenue that missed Wall Street estimates and same-store sales below forecasts as the company felt the impact of the war in the Middle East.
Caterpillar
rose 2% after the heavy-machinery maker reported fourth-quarter adjusted earnings that beat analysts’ estimates. Operating profit margin in the period improved to 18.4% from 10.1%.
Estée Lauder
rose 12% after the beauty-products company reported fiscal second-quarter profit that beat expectations. Estée Lauder posted adjusted profit of 88 cents a share, beating analysts’ estimates of 54 cents. The company said it expects double-digit percentage organic sales growth in the second half of its fiscal year. The company also announced it would be cutting 3% to 5% of its workforce under a restructuring program.
ON Semiconductor
reported fourth-quarter adjusted earnings that beat analysts’ estimates but issued revenue guidance for the first quarter that missed forecasts. Shares of the supplier of semiconductors to the auto industry rose 9.5%.
Air Products & Chemicals
dropped 16% after reducing its outlook for fiscal 2024 adjusted earnings outlook by 60 cents to a range of $12.20 to $12.50 a share, below current analysts’ estimates for $12.97.
Elanco Animal Health
rose 7.9% after it agreed to sell its aqua business to
Merck Animal Health
for $1.3 billion in cash.
Snap,
the parent of
Snapchat,
said it plans to cut about 10% of its workforce “to ensure we have the capacity to invest incrementally to support our growth over time.” The company will record pretax charges of $55 million to $75 million from the moves. Shares fell 1.8%.
Write to Joe Woelfel at [email protected] and Angela Palumbo at [email protected]
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