GM CEO Mary Barra speaks to media prior to the start of General Motors Company’s 2017 annual general meeting Tuesday, June 6, 2017 at GM Global Headquarters in Detroit, Michigan.
Photo by John F. Martin for GM
Check out the companies that are making the headlines in midday trading.
General Motors – GM shares rose 1.6% after the company announced it would increase spending on electric and autonomous vehicles to $ 35 billion by 2025. The new number is 30% higher than the plans announced late last year. “We’re seeing exceptionally strong responses and positive responses across the board to all of our electric vehicles,” CEO Mary Barra told CNBC’s Squawk on the Street.
H&R Block – H&R Block shares fell 6.5% after the tax consultancy fell short of Wall Street’s fourth-quarter revenue expectations. On Tuesday, the company reported revenue of $ 2.33 billion, less than analysts’ estimate of $ 2.35 billion. However, H&R Block reported adjusted earnings of $ 5.16 per share, slightly higher than analysts’ projections of $ 5.13 per share.
Citigroup – Citi stock slumped 3.2% after Bloomberg reported the bank warned of rising costs and falling revenues. According to Bloomberg, CFO Mark Mason expects spending to climb to between $ 11.2 billion and $ 11.6 billion in the second quarter.
Oracle – The enterprise software maker shares fell 5.6% after the company issued lower than expected quarterly revenue forecasts as it plans to increase capital expenditures to support cloud computing workloads. Oracle’s fourth quarter of fiscal year earnings and revenue surpassed analyst estimates, according to Refinitiv.
Carnival, Royal Caribbean and Norwegian Cruise Line Holdings – Cruise stocks rose after Wolfe Research upgraded the big three lines to outperform peers. Carnival shares rose 2.3%, Royal Caribbean shares rose 1.9% and Norwegian rose 2.6%.
Roblox – The video game company’s shares fell 8% in midday trading after user growth slowed from the previous month. Roblox reported 43 million daily active users for May, 28% more than last year but fewer than 43.3 million in April.
Kindred Biosciences – Kindred Biosciences’ shares rose 45.6% after the animal therapeutic announced it would be acquired by Elanco Animal Health at $ 9.25 per share, approximately $ 440 million. Kindred Biosciences stated that the selling price was a 52% premium based on the 30-day average.
La-Z-Boy – La-Z-Boy stock lost 11.7% despite posting better-than-expected financial results in the fourth quarter. The furniture company reported adjusted earnings of 87 cents per share, beating analysts’ earnings expectations of 74 cents per share, according to FactSet. The company also reported revenue of $ 519.5 million, compared to Street’s $ 498.5 million forecast.
Dish Network – The television company’s stocks rose 2.7% after the Pivotal Research Group upgraded the stock to buy off hold. In a statement to customers, the company said it was optimistic about Dish’s push into 5G wireless.
SoFi – The consumer finance startup’s shares rose 5% after Rosenblatt initiated coverage of the company as a top pick, based on fintech’s promise to offer more services at a lower cost. Earlier this week, JPMorgan Chase CEO Jamie Dimon also lamented that the financial institution “had” innovation the way fintech companies have but failed to do so due to stricter regulatory requirements on traditional banks. SoFi launched shares earlier this month as part of a SPAC offering.
Sunrun – Shares in the maker of residential solar panels and home batteries rose 10.6% after Morgan Stanley reiterated its overweight position in the stock. In addition, Sunrun’s price target was raised from USD 86.00 to USD 91.00.
Maxar Technologies – The space stock rose 11.2% after Goldman Sachs initiated coverage of Maxar Technologies with a buy rating. The investment bank sees the stock rising 45% for the next year.
Squarespace – Squarespace’s shares rose 3.3% after Mizuho initiated coverage of the company with a buy rating. “Squarespace provides a robust SaaS platform for building websites and ecommerce sites that we believe are aesthetically pleasing, usable, and feature-rich to help drive market share in the digital goods and services market,” said Siti Panigrahi of Mizuho in a communication.
– CNBC’s Yun Li, Maggie Fitzgerald, Tanaya Macheel and Jesse Pound contributed to the coverage
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