Check out the companies making headlines in premarket trading. Deckers Outdoor — The maker of Ugg and Hoka jumped 14% following its big earnings beat. Deckers posted earnings of $1.59 per share, topping the $1.24 a share expected from analysts polled by LSEG. Revenue was $1.31 billion, well above the $1.20 billion consensus estimate. Digital Realty Trust — The real estate investment trust surged 11% before the opening bell after reporting record lease bookings for the third quarter. Digital Realty also raised the top-end of its full-year revenue forecast to $5.6 billion, while analysts polled by FactSet expected $5.57 billion. Tapestry , Capri – Shares of Tapestry surged 13%, while shares of Capri plummeted 47%. The sharp moves come after a federal judge blocked Tapestry’s acquisition of Capri . Capital One — The financial services stock rallied 4% on better-than-expected third-quarter results. Capital One posted adjusted earnings of $4.51 per share on revenue of $10.01 billion. Analysts surveyed by LSEG called for $3.76 per share in earnings and $9.86 billion in revenue. The provision for credit losses came in at $2.48 billion, versus the $2.83 billion estimate from analysts polled by StreetAccount. L3Harris Technologies — Shares advanced more than 4%. L3Harris surpassed Wall Street estimates on the top and bottom line in the third quarter. The defense company also raised the bottom end of its full-year earnings guidance, saying it now expects EPS in the range of $12.95 to $13.15, compared with a prior forecast of $12.85 to $13.15. Analysts polled by FactSet were looking for $13.04 for the full-year. ResMed — The medical equipment stock gained more than 5% after surpassing analyst estimates for the fiscal first quarter. ResMed earned $2.20 per share on revenue of $1.22 billion, while analysts polled by FactSet forecast a profit of $2.05 and revenue of $1.19 billion. DexCom — Shares of the glucose monitoring device manufacturer pulled back nearly 8% despite surpassing Wall Street’s third-quarter estimates. The company reiterated its forecast for the year. Skechers — The footwear stock added nearly 8% after Skechers raised its full-year earnings forecast to a range of $4.20 to $4.25 per share, from $4.08 to $4.18 per share previously. Analysts polled by FactSet expected Skechers to earn $4.17 per share. Western Digital — Shares climbed more than 12% despite posting mixed fiscal first-quarter results. Western Digital earned $1.78 per share, excluding items, while analysts polled by LSEG called for a profit of $1.72 per share. Although revenue from the data storage company fell short of estimates, it raised the bottom end of its second-quarter earnings guidance. Joby Aviation — The air taxi stock plummeted more than 15% after filing for a $200 million common stock offering . Olin — Stock in the ammunition manufacturer slipped 9% after reporting a wider-than-expected third-quarter loss of 21 cents per share as a hurricane disrupted its operations. A year ago, the company earned 82 cents per share. Colgate-Palmolive — The consumer products stock was roughly 2% lower despite surpassing anlayst estimates on the top and bottom line in the third quarter, and raising the lower end of its sales forecast. Colgate reported adjusted earnings of 91 cents on revenue of $5.03 billion, while analysts polled by LSEG forecast a profit of 89 cents and $5 billion in revenue. Centene — The managed care stock added more than 14% after third-quarter results surpassed Wall Street estimates and mainted its full-year profit forecast. Centene earned $1.62 per share on an adjusted basis on revenue of $42.02 billion, while analysts surveyed by LSEG forecast earnings of $1.33 and revenue of $37.60 billion. The company raised its full-year revenue outlook to $159 billion to $161 billion. Analysts polled by FactSet expected $156.58 billion. — CNBC’s Hakyung Kim, Sarah Min and Michelle Fox contributed reporting
Ken Griffin, chief executive officer and founder of Citadel Advisors LLC, speaks during an Economic Club of New York event in New York, US, on Thursday, Nov. 21, 2024.
Yuki Iwamura | Bloomberg | Getty Images
Citadel CEO Ken Griffin issued a warning against the steep tariffs President-elect Donald Trump vowed to implement, saying crony capitalism could be a consequence.
“I am gravely concerned that the rise of tariffs puts us on a slippery slope towards crony capitalism,” the billionaire investor said Thursday at the Economic Club of New York.
The Citadel founder thinks domestic companies could enjoy a short-term benefit of having their competitors taken away. Longer term, however, it does more harm to corporate America and the economy as companies lose competitiveness and productivity.
Crony capitalism is an economic system marked by close, mutually advantageous relationships between business leaders and government officials.
“Those same companies that enjoy that momentary sugar rush of having their competitors removed from the battlefield, soon become complacent, soon take for granted their newfound economic superiority, and frankly, they become less competitive on both the world stage and less competitive at meeting the needs of the American consumer,” Griffin said at the event.
Trump made universal tariffs a core tenet of his economic campaign pitch, floating a 20% levy on all imports from all countries with a specifically harsh 60% rate for Chinese goods.
The protectionist trade policy could make production of goods more expensive and raise consumer prices, just as the world recovers from pandemic-era inflation spikes.
“Now you’re going to find the halls of Washington really filled with the special interest groups and the lobbyists as people look for continued higher and higher tariffs to keep away foreign competition, and to protect inefficient American businesses have failed to meet the needs of the American consumer,” Griffin said.
At the same event, Griffin also said that he’s not focused on taking Citadel Securities public in the foreseeable future. Citadel is a market maker founded by Griffin in 2002.
“We’re focused on building the business, on investing in our future. And we do believe that there are benefits to being private during this period of very, very rapid growth,” he said.
Check out the companies making headlines in midday trading. Nvidia — Shares of the chipmaker dipped about 1% in midday trading, after gyrating earlier in the session. Nvidia beat on top and bottom lines for the third quarter, posting adjusted earnings of 81 cents per share on revenue of $35.08 billion. Analysts polled by LSEG had called for earnings of 75 cents per share on $33.16 billion in revenue. Nvidia also gave a better-than-expected forecast for the current quarter. Baidu — U.S. shares of the Chinese search engine fell about 5% after Baidu’s third-quarter revenue declined by 3% compared to the year-ago period . Still, the company posted a 12% increase in its non-online marketing revenue, fueled mostly by growth in its artificial intelligence cloud business. Alphabet — Shares declined 5% on news that the Department of Justice is pushing a federal judge to force Google divest its Chrome internet browser in order to create a more level playing field for competitors in the search industry. That follows a ruling in August that Google has a monopoly in the search market. Snowflake — The data analytics software maker saw shares skyrocket more than 34%, after the company’s better-than-expected third-quarter results . The stock is heading for its best day ever. Snowflake also called for $3.43 billion in fiscal 2025 product revenue, implying 29% growth. CEO Sridhar Ramaswamy said Snowflake is focusing more on saving money. Merus — Shares of the cancer therapeutics company gained nearly 4%. Goldman Sachs initiated coverage of Merus with a buy rating, saying it sees big gains ahead driven by the company’s cancer treatment. Netflix — Shares rose nearly 2% on the heels of Bank of America reiterating its buy rating on the stock and upping its price target to $1,000. The bank cited live events, as well as Netflix’s in-house ad tech platform, as catalysts for growth. Crypto-related stocks — Stocks tied to cryptocurrencies earlier rose after the price of bitcoin crossed $98,000 for the first time , but they fluctuated after Galaxy Digital CEO Michael Novogratz warned that a pullback in bitcoin will come eventually. MicroStrategy was down 1%, reversing its earlier gains, while Coinbase dipped 3%. Miner Mara Holdings gained nearly 10%, while trading platform Robinhood dipped about 1%. BJ’s Wholesale Club — Shares moved 9% higher after the warehouse club’s third-quarter adjusted earnings beat the Street’s estimates. BJ’s also boosted its full-year guidance. The company said it will increase its membership fee and announced plans to repurchase $1 billion shares. PDD Holdings — Shares of the e-commerce giant, which owns Temu, fell 9.7%. PDD missed profit and revenue estimates. — CNBC’s Sean Conlon, Yun Li and Michelle Fox contributed reporting.
Rohit Chopra, director of the CFPB, testifies during the Senate Banking, Housing and Urban Affairs Committee hearing titled “The Consumer Financial Protection Bureau’s Semi-Annual Report to Congress,” in the Dirksen Building on Nov. 30, 2023.
Tom Williams | Cq-roll Call, Inc. | Getty Images
The Consumer Financial Protection Bureau on Thursday issued a finalized version of a rule saying it will soon supervise nonbank firms that offer financial services likes payments and wallet apps.
Tech giants and payments firms that handle at least 50 million transactions annually will fall under the review, which is meant to ensure the newer entrants adhere to the laws that banks and credit unions abide by, the CFPB said in a release. That would include popular services from Apple and Google, as well as payment firms like PayPal and Block.
While the CFPB already had some authority over digital payment companies because of its oversight of electronic fund transfers, the new rule allows it to treat tech companies more like banks. It makes the firms subject to “proactive examinations” to ensure legal compliance, enabling it to demand records and interview employees.
“Digital payments have gone from novelty to necessity and our oversight must reflect this reality,” said CFPB Director Rohit Chopra. “The rule will help to protect consumer privacy, guard against fraud, and prevent illegal account closures.”
A year ago, the CFPB said it wanted to extend its oversight to tech and fintech companies that offer financial services but that have sidestepped more scrutiny by partnering with banks. Americans are increasingly using payment apps as de facto bank accounts, storing cash and making everyday purchases through their mobile phones.
The most popular apps covered by the rule collectively process more than 13 billion consumer payments a year, and have gained “particularly strong adoption” among low- and middle-income users, the CFPB said on Thursday.
“What began as a convenient alternative to cash has evolved into a critical financial tool, processing over a trillion dollars in payments between consumers and their friends, families, and businesses,” the regulator said.
The initial proposal would’ve subjected companies that process at least 5 million transactions annually to some of the same examinations that the CFPB conducts on banks and credit unions. That threshold got raised to 50 million transactions in the final rule, the agency said Thursday.
Payment apps that only work at a particular retailer, like Starbucks, are excluded from the rule.
The new CFPB rule is one of the rare instances where the U.S. banking industry publicly supported the regulator’s actions; banks have long felt that tech firms making inroads in financial services ought to be more scrutinized.
The CFPB said the rule will take effect 30 days after its publication in the Federal Register.