Finance

AAPL, AMZN, INTC and more

Published

5 months ago

August 1, 2024

Customers are trying on and learning about Apple Vision Pro headsets at an Apple store in Shanghai, China, on July 22, 2024.

Costfoto | Nurphoto | Getty Images

Check out the companies making headlines in extended trading:

Intel — The chip stock sank 17%. Intel said it would suspend its dividend in the fiscal fourth quarter, and it announced plans to lay off 15% of its workforce. The news coincided with worse-than-expected quarterly results. Intel also shared disappointing guidance for the current quarter.

Amazon — Shares of the e-commerce giant dropped 5% in extended trading. The company reported weaker-than-expected revenue for the second quarter and issued a disappointing forecast for the third quarter. Revenue in its cloud division increased 19% in the second quarter, beating analysts’ estimates, however.

Apple — Shares of the iPhone maker inched higher, as the company beat analysts’ estimates on the top and bottom lines. Apple reported fiscal third-quarter earnings of $1.40 per share while analysts polled by LSEG called for $1.35 per share. Revenue clocked in at $85.78 billion, also surpassing the Street’s estimates.

DoorDash — Shares surged nearly 14% after the online food ordering company reported a revenue beat in the second quarter. DoorDash posted $2.63 billion in revenue while analysts polled by LSEG had estimated $2.54 billion. Management also raised the marketplace gross order value forecast for the third quarter.

Coinbase — The crypto exchange operator saw its shares rise nearly 5% in extended trading. In the second quarter, revenue came in at $1.45 billion, slightly above estimates of $1.40 billion, according to LSEG.

Block — The fintech company rallied more than 7% on better-than-expected adjusted earnings in the second quarter. Block reported adjusted earnings of 93 cents per share, coming above consensus calls for 84 cents per share, according to analysts surveyed by LSEG. Meanwhile, revenue of $6.16 billion missed analysts’ estimates for $6.28 billion.

Snap — The parent of the instant messaging app cratered 17%. Snap called for third-quarter adjusted earnings to range between $70 million and $100 million, falling short of the $110 million estimate from analysts polled by StreetAccount. Revenue for the latest quarter missed the Street’s forecasts.

Roku — Shares jumped more than 5% after Roku posted second-quarter results that exceeded expectations. The streaming device company posted a narrower-than-expected quarterly loss of 24 cents per share, better than the loss of 43 cents per share anticipated by analysts polled by LSEG. Revenue of $968 million topped the $938 million consensus estimate.

Clorox — The stock advanced 4%. Clorox issued fiscal full-year earnings guidance in a range between $6.55 and $6.80 per share, coming above analysts’ estimates of $6.45 in earnings per share, according to analysts polled by LSEG. Fiscal fourth-quarter adjusted earnings came in at $1.82 per share, while consensus estimates called for $1.56 per share.

Coterra Energy — Shares dipped 1.8% after Coterra Energy posted disappointing earnings results. Coterra reported adjusted second-quarter earnings of 37 cents per share, below the FactSet consensus estimate of 39 cents in earnings per share.

GoDaddy — Shares jumped 6% after the web hosting company raised its revenue guidance for the full year. GoDaddy issued full-year revenue guidance between $4.525 billion and $4.565 billion, while analysts polled by FactSet had expected $4.53 billion.

— CNBC’s Sarah Min, Yun Li, Samantha Subin, Tanaya Macheel and Darla Mercado contributed reporting.

Finance

Stocks making the biggest moves midday: AAL, AVGO, JPM

Published

22 hours ago

December 24, 2024

Business Finance News

Finance

Biggest banks planning to sue the Federal Reserve over annual stress tests

Published

1 day ago

December 24, 2024

Business Finance News

A general view of the Federal Reserve Building in Washington, United States.

Samuel Corum | Anadolu Agency | Getty Images

The biggest banks are planning to sue the Federal Reserve over the annual bank stress tests, according to a person familiar with the matter. A lawsuit is expected this week and could come as soon as Tuesday morning, the person said.

The Fed’s stress test is an annual ritual that forces banks to maintain adequate cushions for bad loans and dictates the size of share repurchases and dividends.

After the market close on Monday, the Federal Reserve announced in a statement that it is looking to make changes to the bank stress tests and will be seeking public comment on what it calls “significant changes to improve the transparency of its bank stress tests and to reduce the volatility of resulting capital buffer requirements.”

The Fed said it made the determination to change the tests because of “the evolving legal landscape,” pointing to changes in administrative laws in recent years. It didn’t outline any specific changes to the framework of the annual stress tests.

While the big banks will likely view the changes as a win, it may be too little too late.

Also, the changes may not go far enough to satisfy the banks’ concerns about onerous capital requirements. “These proposed changes are not designed to materially affect overall capital requirements, according to the Fed.

The CEO of BPI (Bank Policy Institute), Greg Baer, which represents big banks like JPMorgan, Citigroup and Goldman Sachs, welcomed the Fed announcement, saying in a statement “The Board’s announcement today is a first step towards transparency and accountability.”

However, Baer also hinted at further action: “We are reviewing it closely and considering additional options to ensure timely reforms that are both good law and good policy.”

Groups like the BPI and the American Bankers Association have raised concerns about the stress test process in the past, claiming that it is opaque, and has resulted in higher capital rules that hurt bank lending and economic growth.

In July, the groups accused the Fed of being in violation of the Administrative Procedure Act, because it didn’t seek public comment on its stress scenarios and kept supervisory models secret.

CNBC’s Hugh Son contributed to this report.