Check out the companies making headlines in after-hours trading. Chipotle Mexican Grill — The burrito chain reported mixed quarterly results , and shares dipped 3%. Chipotle reported adjusted earnings of 27 cents per share, exceeding expectations of 25 cents a share from analysts polled by LSEG. Revenue came out at $2.79 billion for the period, just shy of analysts’ forecast of $2.82 billion. The company’s same-store sales rose 6% for the quarterly period, also falling short of estimates. Alphabet — Shares of the Google parent added 4% after the company exceeded Wall Street’s top and bottom-line estimates . Alphabet posted earnings of $2.12 per share on revenue of $88.27 billion, while analysts polled by LSEG expected earnings of $1.85 per share on $86.30 billion in revenue. The megacap tech titan saw its revenue grow by 15% year over year, stronger than the same quarter last year, as Google Cloud revenue beat expectations. Snap — The maker of the instant messaging app jumped nearly 8%. Third quarter adjusted earnings came in at 8 cents per share, while revenue was $1.37 billion. Analysts were looking for 5 cents a share in earnings and revenue of $1.36 billion. Snap also announced a $500 million stock repurchase program. Qorvo — Shares of the semiconductor solutions provider dropped 15%. Qorvo issued disappointing earnings guidance for the fiscal third quarter, saying it expects adjusted earnings to come out in the range of $1.10 to $1.30 a share, while analysts polled by LSEG expected $1.92 a share. The company’s management said it expects Qorvo’s fiscal year 2025 revenue and gross margin to be slightly down compared to fiscal year 2024. Qorvo’s fiscal second-quarter earnings and revenue exceeded estimates, however. Electronic Arts — Shares of the video game company added 1.3%. Electronic Arts reported adjusted earnings of $1.11 per share on revenue of $2.08 billion for the fiscal second quarter. Analysts surveyed by LSEG had called for adjusted earnings of $2.02 per share on revenue of $2.04 billion. Visa — The global payments company beat earnings and revenue expectations for the fiscal fourth quarter, driving shares up about 1.5%. Visa posted adjusted earnings of $2.71 per share on revenue of $9.62 billion. Analysts polled by LSEG expected earnings of $2.58 per share on revenue of $9.49 billion. The company also increased its quarterly dividend by 13% to 59 cents. Advanced Micro Devices — Shares of the semiconductor company slid 7%. AMD gave fourth-quarter revenue guidance of $7.5 billion, merely meeting the Street’s estimates, per LSEG. Adjusted earnings for the third quarter came in at 92 cents per share, in line with analysts’ expectations. Reddit — The social media company posted beats on the top and bottom lines in the third quarter, sending shares higher by 18%. Reddit reported earnings of 16 cents a share on revenue of $348 million, while analysts expected a loss of 7 cents per share and revenue of $313 million, per LSEG. The company also issued a rosy forecast for the fourth quarter. First Solar — The solar panel manufacturer tumbled 3% after cutting its full-year guidance. First Solar also missed Wall Street’s expectations in the third quarter, posting earnings of $2.91 per share on revenue of $888 million. Analysts sought $3.14 per share in earnings and revenue of $1.08 billion, per LSEG.
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.