Check out the companies making headlines in extended trading: Rivian — The electric vehicle maker added nearly 2% despite missing on both top and bottom lines in the third quarter. Rivian posted an adjusted loss of 99 cents per share on $874 million in revenue. Analysts polled by LSEG had forecast a loss of 92 cents per share on revenue of $990 million. Pinterest — Shares tumbled 11% after the social media company posted weak guidance for its fourth-quarter revenue. Pinterest guided revenue to fall between $1.125 million and $1.145 million. The midpoint of the fourth-quarter guidance, $1.135 million, came below analysts’ estimates of $1.143 million, per LSEG. The company posted beats on the top and bottom lines in the third quarter. Block — Shares dipped 2% after the fintech firm reported a third-quarter revenue miss . Block posted sales of $5.98 billion, while analysts polled by LSEG had anticipated $6.24 billion. On the other hand, Block’s adjusted earnings of 88 cents per share beat analysts’ estimates by one cent. Airbnb — Shares of the online homestays company slipped nearly 3%. Airbnb posted third-quarter earnings of $2.13 per share, 1 cent shy of the consensus forecast, per LSEG. Quarterly revenue of $3.73 billion was slightly above analysts’ estimates for $3.72 billion. Akamai Technologies — Shares slid 6% as the cloud computing company issued disappointing full-year guidance. Akamai said its adjusted earnings for the period will range between $6.31 and $6.38 per share on revenue of $3.966 billion to $3.991 billion. Analysts polled by FactSet anticipated $6.43 per share in earnings and $3.99 billion in revenue. DraftKings — The sports betting company tumbled 4% after guidance missed the mark. DraftKings said its fourth-quarter adjusted earnings before interest, taxes, depreciation and amortization will range between $240 million and $280 million. Analysts polled by LSEG sought $340 million to $420 million. The company also fell short of the Street’s expectations in the third quarter. Sweetgreen — The salad chain dropped more than 10% after missing on top and bottom lines in the third quarter. Sweetgreen announced losses of 18 cents per share, while analysts had expected a loss of 13 cents per share, according to LSEG. Revenue of $173 million also fell short of the $175 million forecast by analysts. Toast — Shares of the restaurant management software company surged 19% on strong fourth-quarter guidance. Toast guided fourth-quarter adjusted EBITDA between $90 million and $100 million. Analysts polled by StreetAccount estimated $74.8 million. Third-quarter results also beat estimates on both top and bottom lines. Expedia Group — Shares of the travel service company jumped 3%. Expedia’s adjusted earnings for the third quarter came in at $6.13 per share, beating analysts’ call for $6.04 a share, per LSEG. Revenue came in at $4.06 billion and narrowly missing analysts’ forecast for $4.11 billion. The company also said Chief Financial Officer Julie Whalen will be stepping down from her role. Arista Networks — The computer networking company fell 6% despite third-quarter results that topped estimates. Arista Networks reported third-quarter adjusted earnings of $2.40 per share on revenue of $1.81 billion. Analysts had expected earnings of $2.08 per share on $1.74 billion in revenue. The company’s fourth-quarter revenue guidance range also beat forecasts. Arista Networks also announced a 4-for-1 stock split. Lucid Group — The electric car manufacturer advanced 6% after narrowly beating analysts’ expectations in the third quarter. Lucid reported an adjusted loss of 28 cents per share on revenue of $200 million in the period. Analysts polled by LSEG expected a loss of 30 cents per share and revenue of $198 million. The company also reaffirmed plans to produce about 9,000 vehicles this year, up 6.8% from 2023. Capri Holdings — The owner of Jimmy Choo lost 7% after results in the fiscal second quarter missed analysts’ estimates. Capri reported adjusted earnings of 65 cents per share on revenue of $1.08 billion, while the Street sought 75 cents a share in earnings and $1.18 billion in revenue, per LSEG. Revenue for Michael Kors and Versace also came up short of expectations. — CNBC’s Darla Mercado, Lisa Kailai Han and Alex Harring 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.