Check out the companies making headlines in midday trading. Donald Trump trades — Individual stocks viewed as trades tied to Donald Trump’s election odds surged as the Republican clinched a return to the White House. Trump Media & Technology , majority owned by Trump himself, popped nearly 5%. Tesla , whose CEO publicly backed the President-elect, surged more than 14% . Phunware , the company behind the campaign’s app, climbed 5%. Crypto stocks — Cryptocurrency-related names soared after investors bet that a Trump presidency would lead to a more supportive regulatory environment. Shares of Coinbase surged 28% and MicroStrategy rose about 12%, as bitcoin rallied to a new record high . Bank stocks — Big banks rallied broadly on the back of Trump’s victory in the presidential election. Investors forecast that his presidency will lead to looser regulation and allow more mergers and acquisitions across the sector. Citigroup and Bank of America climbed more than 9% and 8% each. Goldman Sachs and Wells Fargo jumped 12% and 14%, respectively. CVS Health — The pharmacy retailer soared 10% after CVS posted third-quarter revenue of $95.43 billion , which surpassed consensus estimates of $92.75 billion, per LSEG. On the other hand, CVS’ adjusted earnings of $1.09 per share fell short of the $1.51 per share analysts anticipated. Clean energy — Clean energy stocks sank as investors bet that a Trump presidency could lead to an overhaul of recent industry reforms and progress, including a repeal of President Joe Biden’s Inflation Reduction Act. Plug Power shed more than 23% and Sunrun lost nearly 29%. SolarEdge Technologies lost about 20%. Enphase Energy was last down around 17%. Novo Nordisk — U.S.-listed shares of the Danish pharmaceuticals firm slipped 3%. Novo Nordisk reported that its third-quarter net profit came in above analyst estimates . Sales of its weight-loss drug Wegovy were also 79% higher in the third-quarter of 2024 than the same period a year earlier. Private prison stocks — Geo Group and CoreCivic popped 39% and 29%, respectively after Trump, who has promised a mass deportation of illegal immigrants, won the White House. Cannabis stocks — Shares of cannabis companies dropped after voters rejected a Florida ballot measure to legalize the sale and use of marijuana in the state. Tilray sank 14%, while U.S.-listed shares of Canada-based companies Aurora Cannabis and Canopy Growth lost 18% and 23%, respectively. Super Micro Computer — Shares plunged 24% after the embattled computer server maker guided for revenue in its December quarter between $5.5 billion and $6.1 billion , missing analysts’ expectations. Super Micro’s adjusted earnings per share outlook also fell short of the Street’s forecast. The company is unsure when it will file annual results for the latest fiscal year but said it was “working with urgency to become current again” with its financial reporting. Retail stocks — Retail stores with China sourcing exposure slipped on Wednesday following Trump’s reelection. Trump’s proposed universal tariffs could lead to soaring import prices. On the back of these tariff fears, Bank of America downgraded Five Below to underperform from neutral and Yeti to a neutral rating from buy. Shares of Five Below and Yeti both tumbled about 7% and 9%, respectively. Dollar Tree and Dollar General also respectively lost roughly 9% and 5%. Planet Fitness — Shares popped about 6% after CNBC, citing court filings, reported the fitness chain wants to acquire bankrupt budget-fitness chain Blink Holdings. Steel stocks — U.S.-based steel stocks rallied on the back of Trump’s victory. He has floated tariffs that would ultimately benefit U.S. steel pricing. Shares of Nucor and Cleveland-Cliffs respectively rallied 16% and 21%, while United States Steel climbed 10%. — CNBC’s Michelle Fox, Alex Harring, Hakyung Kim, Sarah Min and Samantha Subin contributed reporting.
Check out the companies making headlines in extended trading. Qualcomm — The chipmaker popped 4% after posting results for the fiscal fourth quarter that topped Wall Street’s expectations. The company also offered a strong outlook for the current quarter. Qualcomm reported adjusted earnings of $2.69 per share on $10.24 billion in revenue. Arm Holdings — The semiconductor company slipped 4% despite reporting earnings for the fiscal second quarter that beat expectations. Arm posted adjusted earnings of 30 cents per share on $844 million in revenue, while analysts polled by LSEG had expected 26 cents and $808 million in revenue. Wolfspeed — The semiconductor manufacturer tumbled 17% after missing revenue expectations and offering weak guidance for the current quarter. Wolfspeed generated revenue of $195 million in the first fiscal quarter, missing the consensus estimate of analysts polled by LSEG by $5 million. The company said to expect between $160 million and $200 million in revenue during the current quarter, under the $215 million figure expected. Take-Two Interactive Software — The video game maker popped 3.8% after posting fiscal second-quarter revenue of $1.47 billion, above the expectation of $1.43 billion from analysts surveyed by LSEG. HubSpot — The customer platform jumped 7% after third-quarter earnings came in stronger than expected. HubSpot saw $2.18 in adjusted earnings per share on $669.7 million in revenue, while analysts polled by FactSet forecasted $1.91 a share and $647 million, respectively. The company also issued better-than-anticipated revenue guidance for the full year. Lyft – The ride-hailing company surged nearly 20%. Third-quarter revenue came in at $1.52 billion, topping consensus estimates for $1.44 billion, per LSEG. Guidance for the fourth quarter topped the Street’s expectations, with Lyft forecasting bookings of $4.28 billion to $4.35 billion, while FactSet consensus estimates called for $4.23 billion. MercadoLibre – The online marketplace operator tumbled nearly 9%. Third-quarter earnings of $7.83 per share missed analysts’ forecast for $10 per share, according to FactSet. Red Robin Gourmet Burgers – The burger chain slid 5% after third-quarter adjusted losses came in wider than anticipated at $1.13 per share, while the consensus estimates from StreetAccount called for a loss of 96 cents per share. SolarEdge Technologies – The maker of residential solar power inverters tanked 18%. Third-quarter revenues missed the Street’s expectations, coming in at $261 million, versus LSEG consensus estimates for $269 million. Investors punished SolarEdge in regular trading, where the stock cratered 22% on fears that President-elect Donald Trump will repeal the Inflation Reduction Act. Dutch Bros — Shares soared more than 15% after the restaurant chain’s third-quarter results surpassed Wall Street’s expectations. Dutch Bros posted adjusted earnings of 16 cents per share on revenue of $338 million for the period, above the 12 cents per share and $325 million in revenue that analysts were looking for, according to LSEG. Bumble — The online dating platform slid nearly 3%, even as revenue for the third quarter came in $2 million above the LSEG consensus estimate of $274 million. Match Group — The Tinder and Hinge parent tumbled 12.6% after posting weaker-than-expected revenue and guidance. Match Group reported $895 million in third-quarter revenue, under the $901 million expected by analysts, per LSEG. The company also gave a range for expected revenue in the current quarter that was below what Wall Street penciled in. E.l.f Beauty — The cosmetics retail stock jumped 11% after a stronger than-expected quarterly report and a guidance hike. E.l.f. reported 77 cents in adjusted earnings per share for its fiscal second quarter, topping the 43 cents expected by analysts, according to LSEG. Revenue climbed 40% to $301 million, beating expectations of $286 million. The beauty company also raised its full-year revenue outlook. Zillow Group — The housing market platform rallied 11% after surpassing Wall Street expectations on both lines in the third quarter. Zillow reported adjusted earnings of 35 cents per share on revenue of $581 million. Analysts surveyed by LSEG expected 29 cents per share and $555 million in revenue. — CNBC’s Darla Mercado, Jesse Pound, Samantha Subin and Sean Conlon contributed reporting
Check out the companies making headlines before the stock market opens: Crypto stocks — Shares of Coinbase surged 12% as investors cheered the prospect of a more supportive regulatory environment for cryptocurrency businesses under a second Donald Trump presidency. MicroStrategy , which trades as a high-beta play on the bitcoin price, gained 11% as bitcoin surged to a new all-time high . Bank stocks — Shares of banking stocks soared in premarket trading after Donald Trump’s victory spurred investor optimism that the sector could see less regulation . Citigroup advanced more than 8%, while Goldman Sachs and Wells Fargo gained 7% and 9%, respectively. Bank of America climbed roughly 8%. Trump Media & Technology — Shares of the media company, majority owned by Donald Trump, skyrocketed more than 32% after the Republican won a second presidential term. The stock rallied even though the Truth Social parent posted a surprise earnings statement on Tuesday showing a $19.2 million loss in the third quarter. CVS Health — Shares rose 7.5% after CVS posted mixed third-quarter results , citing higher medical costs that weighed on net income. The pharmacy company earned an adjusted $1.09 per share, short of analysts’ estimates of $1.51 per share, according to FactSet. Revenue of $95.43 billion surpassed the consensus forecast of $92.75 billion. Clean energy stocks — Shares of renewable energy and solar companies slid on worries that Trump’s second term could imperil the Inflation Reduction Act and measures to fight climate change. The IRA includes a package of tax credits aimed at encouraging clean energy projects and spurring solar panel installations. Plug Power dropped 15%, SunRun tumbled nearly 17%, FirstSolar lost 13% and Enphase Energy retreated 12%. Novo Nordisk — U.S.-listed shares added nearly 3% after the Danish maker of diabetes treatments said third-quarter sales of its weight-loss drug Wegovy were 79% higher than the same period a year ago, topping expectations. Private prison stocks — Two private prison companies in the U.S. rose as Trump, who has long promised a crackdown on illegal immigration, was declared the winner of the presidential race. Florida-based GEO Group surged more than 23.5%, while CoreCivic gained more than 18%. Tesla — Shares of Elon Musk’s electric vehicle company rose 12.9% as investors bet a Trump win would benefit the CEO , who Trump has promised will head a government efficiency commission. Wedbush Securities analyst Dan Ives said Tesla could reach a $1 trillion market value under a Trump presidency. Tilray Brands — The cannabis company’s stock tumbled more than 6% after voters rejected a Florida ballot measure to legalize the sale and use of marijuana in the state. U.S.-listed shares of Canada-based companies Aurora Cannabis and Canopy Growth also sank 6% and 15%, respectively. Super Micro Computer — The beaten-down computer server maker reported preliminary first-quarter results on Tuesday that sent the stock nearly 18% lower. Super Micro guided for lower quarterly sales and reported revenue that fell short of estimates. The company said it does not know when it will file annual results for the latest fiscal year, but said it is working to “become current again with [its] financial reporting.” Dollar Tree , Five Below — Shares of Dollar Tree slipped 1.6%, while Five Below moved down 9%. Trump has called for universal tariffs on all imports and a 60% tariff on imports from China. The National Retail Federation has warned those could cause prices to skyrocket. — CNBC’s Michelle Fox Theobald, Tanaya Macheel and Brian Evans contributed reporting.
The logo of German bank Commerzbank seen on a branch office near the Commerzbank Tower in Frankfurt.
Daniel Roland | Afp | Getty Images
Two months since UniCredit played its opening move to woo German lender Commerzbank, the lenders flaunted their financial strength as one of Europe’s largest banking mergers still hangs in balance.
Both banks reported third-quarter results on Wednesday, with UniCredit posting an 8% year-on-year hike in net profit to 2.5 billion euros ($2.25 billion), compared with a Reuters-reported 2.27-billion euro forecast. It raised its full-year net profit guidance to above 9 billion euros, from a previous outlook of 8.5 billion euros.
For its part, Commerzbank revealed a 6.2% drop in net profit to 642 million euros in the third quarter amid a broader drop in net interest income and higher risk provisions. The lender nevertheless said it has lifted its 2024 expectations for net interest and net commissions income, and confirmed its full-year forecast of achieving a net result of 2.4 billion euro, compared with 2.2 billion euros in 2023.
Speaking to CNBC’s Annette Weisbach, Commerzbank CEO Bettina Orlopp said the bank experienced a “very good quarter,” while acknowledging a clear impact on business from lower interest rates in Europe.
She stressed that Commerzbank was on a path of raising its share value through a blend of capital return and higher profitability and the expediency with which the lender hits its targets.
“We have a very good strategy in place, which is also delivering,” she said — as markets watch for whether the bank will assume a defense strategy to fend off takeover interest.
Commerzbank has so far shied from UniCredit’s courtship. When the Italian lender showed its hand by using derivatives to build a potential 21% stake in Commerzbank, the German lender appointed a new CEO and sharpened its financial targets. On Monday, the German bank said it had received regulatory approval to buy back 600 million euros ($653 million) in shares, due to kick off after the Wednesday earnings report and complete by the middle of February.
Yet Orlopp told CNBC that Commerzbank was not intrinsically opposed to a merger:
“We have nothing to be against, because there is nothing on the table. That’s very important to note. And we also always said we would be very open to discuss, if they had something coming on the table, we will carefully review that with our own standalone strategy and see where we can create more values in the interest of our stakeholders,” she said.
The German government has yet to bless the potential union, with Chancellor Olaf Scholz slamming that “unfriendly attacks, hostile takeovers are not a good thing for banks,” in late-September comments carried by Reuters.
The largest shareholder of Commerzbank, the Berlin administration retains a 12% stake after rescuing the lender during the 2008 financial crisis and divesting 4.5% of its initial position in early September.
But a potential schism at home could waylay Scholz’s ruling alliance from closely supervising the transaction, with coalition members due to hold scheduled talks later on Wednesday.
“Let’s put it this way: we wouldn’t be here if we hadn’t been invited to buy that stake. And it all started in a way that we thought was constructive,” UniCredit CEO Andrea Orcel told CNBC’s Charlotte Reed on Wednesday. CNBC has reached out to the German Ministry of Finance for comment.
Appetite for large European cross-border bank mergers has simmered since the controversial 2007 takeover and later evisceration of Dutch lender ABN Amro by a consortium led by the Royal Bank of Scotland — which brought both banks to collapse during the financial crisis. UniCredit CEO Andrea Orcel, then a senior investment banker at Merril Lynch, advised on the ABN Amro transaction — and has once more turned his eye to international ventures, after the Italian lender walked away from a domestic deal to acquire the world’s oldest bank, Monte dei Paschi, in 2021.
UniCredit is already present in Germany through its HypoVereinsbank branch — which Orcel said he sees, alongside Commerzbank, as “two mirror images.”
Last year, UniCredit purchased a nearly 9% stake of Greece’s Alpha Bank from the state-owned Hellenic Financial Stability Fund. On Tuesday, the Italian lender announced it completed acquiring a majority 90.1% interest in Alpha Bank’s Romanian business and plans to complete absorbing the entity in the second half of 2025.
With a common equity tier 1 ratio (CET 1) — a measure of a bank’s strength and resilience — above 16% in the first three quarters of this year, UniCredit appears equipped to weather the strain of a takeover. Last week, Fitch Ratings upgraded its rating on UniCredit’s long-term debt to BBB+ — just above the BBB grade of Italy’s sovereign bonds — citing the lender’s “multi-year long restructuring, balance sheet de-risking and materially improved loss absorption capacity.”
The ratings company noted that UniCredit’s acquisition of a 21% stake in Commerzbank had had no “immediate effect” on its ratings.
Orcel brushed off the exposure risks associated with its stake build in the German lender and a potential takeover:
“Our CET1 is a lot higher than the one Commerzbank has, [but] we need to look at liquidity, we need to look at everything else, like rating agencies. At the end of the day, I don’t think there is a concern there. If there was, we would know about it before we ever had moved,” Orcel noted, stressing UniCredit’s record in Germany:
“Unicredit went through a real difficult time through the [financial] crisis,” he said. “At no time did we squeeze Germany, at no time did we repatriate capital or liquidity from Germany, at no time did we ask for government support. Something that Commerzbank had to do.”
But the deal is not yet done — and Orcel said UniCredit will only march ahead “if it gives us the returns out investors expect, actually, they need to improve those returns meaningfully.”