Check out the companies making headlines in extended trading: Microsoft — The technology giant added about 1% after surpassing Wall Street estimates on the top and bottom lines in the fiscal first quarter . Microsoft reported earnings per share of $3.30 on revenue of $65.59 billion, while analysts polled by LSEG forecast $3.10 in earnings per share and $64.51 billion in revenue. Booking Holdings — Shares of the online reservation company jumped almost 6%. In the third quarter, the company reported adjusted earnings of $83.39 per share and revenue of $7.99 billion, while analysts surveyed by LSEG expected $77.52 in earnings per share and $7.63 billion in revenue. Starbucks — Shares ticked nearly 1% lower. The coffee chain said its global same-store sales dropped 7% in the fiscal fourth quarter, as demand in the U.S. and China sagged. Results in the period disappointed, with earnings coming in at 80 cents per share on revenue of $9.07 billion. Analysts polled by LSEG were looking for $1.03 per share in earnings and $9.36 billion in revenue. Meta Platforms — The Facebook parent company pulled back 2% after Meta posted third-quarter user numbers that fell short of the Street’s expectations. Meta said it had 3.29 billion daily active people in the third quarter, missing analysts’ forecast for 3.31 billion. Coinbase — The cryptocurrency trading platform was almost 3% lower after missing analysts’ third-quarter estimates . Coinbase reported 28 cents in earnings per share on $1.21 billion in revenue, compared to a forecast from analysts surveyed by LSEG that called for 41 cents in earnings per share and $1.26 billion in revenue. Robinhood — Shares of the brokerage platform tumbled 10% as third-quarter results missed Wall Street’s expectations. Robinhood reported earnings of 17 cents per share on revenue of $637 million. Analysts polled by LSEG sought 18 cents per share in earnings and $658 million in revenue. eBay — Weak guidance weighed on the e-commerce company, dragging shares lower by 7%. Ebay forecast fourth-quarter earnings to range between $1.17 and $1.22 per share on revenue of $2.53 billion to $2.59 billion. Analysts polled by LSEG were looking for $1.22 per share in earnings and $2.65 billion in revenue. DoorDash — Shares of the food delivery company were roughly 1% lower in extended trading. DoorDash surpassed analysts’ estimates on the top and bottom lines in the third quarter, with earnings of 38 cents per share and $2.71 billion in revenue. Analysts surveyed by LSEG were looking for 22 cents per share in earnings and $2.66 billion in revenue. Carvana — Shares of the used-car seller advanced more than 20% after Carvana topped analysts’ third-quarter estimates. The company posted 64 cents per share in earnings and $3.66 billion in revenue. Analysts polled by LSEG sought earnings of 25 cents per share and revenue of $3.45 billion. Etsy — The e-commerce stock gained more than 12%. Etsy’s board of directors approved a $1 billion stock buyback . Etsy also beat third-quarter revenue estimates with $662.4 million, while analysts polled by LSEG were expecting $652.5 million. MGM Resorts — Shares of the casino operator tumbled 5% on disappointing results. MGM Resorts reported adjusted earnings of 54 cents for the third quarter, while analysts polled by LSEG predicted 61 cents per share. Revenue also missed the mark, coming in at $4.18 billion, versus the Street’s estimate for $4.21 billion. — CNBC’s Darla Mercado contributed reporting.
Check out the companies making headlines in midday trading: American Airlines — Shares slipped less than 1%, recovering from earlier losses, after the airline temporarily grounded all of its flights due to a technical issue. Broadcom — The semi stock added 2%, extending its December rally. Shares have surged more than 46% this month, propelling its 2024 gain above 112%. Big banks — Shares of some big bank stocks rose more than 1% amid news that a group of banks and business groups are suing the Federal Reserve over the annual stress tests, saying it “produces vacillating and unexplained requirements and restrictions on bank capital.” Citigroup , JPMorgan and Goldman Sachs shares gained more than 1% each. Arcadium Lithium — Shares rose more than 4% after the company announced its shareholders have approved the $6.7 billion sale to Rio Tinto . The deal is expected to close in mid-2025. International Seaways — The energy transportation provider surged 8% after an announcement that the company would be added to the S & P SmallCap 600 index, effective Dec. 30. The company will replace Consolidated Communications , which is soon to be acquired. Crypto stocks — Shares of stocks tied to the price of bitcoin rose as the cryptocurrency gave back recent losses amid a climb in tech names broadly. Crypto services provider Coinbase gained almost 3% and bitcoin proxy MicroStrategy gained more than 5%. Miners Riot Platforms and IREN gained 6% and 4%, respectively. U.S. Steel — The steel producer’s stock hovered near the flatline amid news that President Joe Biden will decide on the fate of its proposed acquisition by Japan’s Nippon Steel after a government panel failed to reach a decision . Apple — Apple shares gained 0.9% to notch a new all-time high. The stock has rallied nearly 34% year to date. — CNBC’s Sean Conlon, Lisa Han, Tanaya Macheel and Alex Harring contributed reporting.
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.