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Midday movers: Meta, IBM, Caterpillar fall; Chipotle rises

Published 25/04/2024, 12:48
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(Updated - April 25, 2024 11:26 AM EDT)

Investing.com -- Main U.S. indexes fell Thursday, with investors concentrating on corporate earnings, particularly from the highly-valued tech sector, and data that showed a slowing economy and persistent inflation.

Here are some of the biggest premarket U.S. stock movers today:

Meta Platforms (NASDAQ:META) stock fell 12% after the Facebook-parent forecast higher expenses and lighter-than-expected revenue and raising fears the surging cost of AI is outpacing its benefits.

Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOGL) also retreated ahead of their earnings, as Meta’s dour lookout dulled expectations, while social media companies Snap (SNAP) and Pinterest (NYSE:PINS) also fell sharply.

IBM (NYSE:IBM) (IBM) stock slid 8.6% on weak first-quarter earnings, while the firm also announced a $6.4 billion deal to buy software company Hashicorp (HCP), up 4%, expanding its cloud-based software products to tap into an AI-powered boom in demand.

American Airlines (NASDAQ:AAL) stock rose 0.2% after the carrier forecast current-quarter profit largely above expectations, amid a rebound in business travel and expectations of strong demand in the upcoming summer season.

Ford (NYSE:F) stock fell 1.6% despite strong first-quarter earnings, bolstered by a strong performance in its commercial vehicle division and an increase in its hybrid vehicle sale, as well as positive guidance.

Chipotle Mexican Grill (NYSE:CMG) stock rose 3.3% after the burrito chain beat expectations with its first-quarter earnings, as a hike in menu price items boosted margins.

Caterpillar (NYSE:CAT) (CAT) stock fell 6.7% after the heavy equipment manufacturer posted a decline in sales volumes as demand eased from last year’s boom, although quarterly profit rose on higher prices.

Merck (MRK) stock rose 1.6% after the drugmaker raised its annual profit and revenue forecast on the back of strong sales for its blockbuster cancer drug Keytruda and human papillomavirus vaccine Gardasil.

Royal Caribbean (NYSE:RCL) (RCL) stock rose 2% after the cruise operator raised its annual profit forecast for a second time, benefiting from record demand for cruises and robust onboard spending.

Southwest Airlines (NYSE:LUV) stock fell 9% after the low-cost carrier slashed its estimates for new aircraft deliveries from Boeing (NYSE:BA), down 0.3%, in 2024 for the third time and said it plans to undertake cost-cutting measures.

Harley-Davidson (NYSE:HOG) stock fell 12% after the motorcycle maker reaffirmed 2024 guidance despite strong first quarter results, raising concerns about future performance.

Comcast (NASDAQ:CMCSA) stock fell 5.9% despite the entertainment giant beating quarterly revenue estimates, with concerns about is broadband business weighing on shares.

Bristol-Myers Squibb (NYSE:BMY) fell 7.6% despite beating estimates for first quarter sales, with analysts calling the beat "low quality" given softness in its growth portfolio. The drugmaker also announced job cuts.

Willis Towers Watson (NASDAQ:WTW) fell 3.7% despite beating estimates for first quarter EPS, as revenue trailed estimates.

Carrier Global (NYSE:CARR) rose 6% despite the HVAC equipment company reporting mixed results, with a beat on the bottom line but lackluster revenue. Analysts said expectations were "low."


Additional reporting by Louis Juricic

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