Pedestrians walk by a sign posted outside of a Charles Schwab office on April 17, 2023 in San Francisco, California.
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Check out the companies making headlines in midday trading.
Morgan Stanley — Shares of the James Gorman-led bank jumped more than 6% after the firm posted second-quarter earnings and revenue that topped analysts’ expectations. The results were helped by Morgan Stanley’s record revenue from wealth management.
Bank of America – Bank of America shares rose nearly 4% after the company reported second-quarter financial results. Earnings came in at 88 cents a share, although analysts estimated a profit of 84 cents per share, according to a Refinitiv estimate. The bank posted revenue of $25.33 billion fueled by a 14% jump in net interest income amid higher rates. Analysts anticipated revenue of $25.05 billion.
Charles Schwab — The brokerage stock popped 12% after reporting stronger-than-expected results for the second quarter. Charles Schwab reported adjusted earnings of 75 cents per share on $4.66 billion in revenue. Analysts surveyed by Refinitiv had expected EPS of 71 cents on $4.61 billion in revenue
Regional bank stocks — Regional bank stocks gained on Tuesday on the heels of a fresh batch of bank results, lifting the SPDR S&P Regional Banking ETF (KRE) more than 3%. Western Alliance popped nearly 8% ahead of earnings after the bell. PacWest was up 9%, while FB Financial gained more than 6% and Zions Bancorporation rose about 3%.
UnitedHealth — The health-insurance stock gained 3.7% after being upgraded to outperform from market perform by Bernstein. The firm said UnitedHealth is a “best-in-class” managed-care and value-based-care company with an attractive valuation and “large runway of growth.”
Verizon, AT&T — Verizon and AT&T rose about 5% and 1%, respectively, reversing the recent downtrend in shares following a report that linked the companies to lead-encased cables and concerns from analysts.
Bank of New York Mellon — Shares rose more than 4% after Bank of New York Mellon reported second-quarter revenue and profit that beat Wall Street’s expectations.
Pinterest — Shares hit a high not seen since early 2022 intraday and were recently up about 2%. Evercore ISI said improving advertising trends are creating an inflection point for the stock.
PNC Financial — Shares gained 2.6% after PNC Financial reported second-quarter earnings that topped Wall Street’s earnings expectations but came in slightly short on revenue. The financial services company reported earnings of $3.36 per share on revenue of $5.29 billion.
Prologis — The logistics real estate stock lost nearly 4% after posting second-quarter results that fell short of Refinitiv revenue estimates. Prologis reported net income of $1.31 a share and rental revenue of $1.65 billion.
Novartis — U.S.-listed shares of Novartis jumped as much as 5% in trading. The Swiss pharmaceutical firm reported second-quarter earnings that topped estimates, according to StreetAccount. Novartis posted core earnings of $1.83 per share, better than the $1.70 estimate. It posted revenue of $13.62 billion, more than the consensus $13.23 billion. The company raised its full-year forecast. Its board of directors also approved a separation from its Sandoz division.
Masimo — Shares tumbled 20% after Masimo preannounced second-quarter revenue that was weaker than consensus expectations, and lowered its full-year guidance. The medical device maker said in its guidance that second-quarter revenue would come in at $453 million to $457 million, lower than expectations of $553.3 million, according to consensus estimates from FactSet. Stifel downgraded the stock to hold from buy after the preannouncement, according to StreetAccount.
Lockheed Martin – The aerospace company gave back earlier gains that followed the release of its latest financial update. Lockheed Martin reported earnings of $6.73 that beat expectations of $6.45, according to FactSet, and revenue of $16.69 billion, compared to expectations of $15.92 billion. The stock jumped at the open and was last trading flat.
— CNBC’s Tanaya Macheel, Sarah Min, Yun Li, Alex Harring and Michelle Fox contributed reporting
