Check out the companies making headlines after the bell : T-Mobile U.S. — The telecommunications giant rose about 3% after posting a third-quarter earnings surprise to the upside. T-Mobile reported earnings per share of $2.61 on $20.16 billion in revenue, while analysts polled by LSEG had been looking for earnings of $2.42 per share on revenue of $20.01 billion. Tesla — Shares leapt 9%. The electric vehicle manufacturer reported third-quarter adjusted earnings of 72 cents per share, beating Wall Street’s estimates of 58 cents, per LSEG. Revenue came in slightly below expectations at $25.18 billion, while analysts were looking for $25.37 billion. Mattel — The toymaker added 3% after adjusted earnings came in at $1.14 per share for the third quarter. That’s well ahead of the consensus forecast of 95 cents from analysts polled by LSEG. On the other hand, Mattel saw $1.84 billion in revenue for the quarter, slightly below the $1.86 billion estimate from analysts. International Business Machines — The tech giant fell 3% on Wednesday after reporting mixed third-quarter results. While the company’s adjusted earnings of $2.30 per share outpaced the consensus estimate of $2.23 per share reported by LSEG, revenue fell short. IBM said revenue rose 1.5% to $14.97 billion from a year ago, but that was shy of the $15.07 billion. The company has been seeing strong AI demand, but its consulting revenue was flat. Las Vegas Sands — The casino operator added nearly 3% despite disappointing analysts’ expectations on both the top and bottom lines. Las Vegas Sands reported adjusted earnings of 44 cents per share, while analysts had expected 53 cents, per LSEG. The company’s $2.68 billion revenue also fell short of the expected $2.78 billion figure. Lam Research — The semiconductor company climbed nearly 5% after reporting fiscal first-quarter adjusted earnings and revenue that beat the Street’s estimates. Lam Research also issued strong guidance for earnings and revenue in the current quarter. Viking Therapeutics — The biopharmaceutical company added less than 1% after reporting a third-quarter loss of 22 cents per share, which was narrower than the FactSet consensus estimate of 24 cents per share. The company’s third-quarter R & D expense of $22.8 million was also less than the expected $24.9 million. LendingClub — The financial services firm jumped 6% after posting third-quarter earnings of 13 cents per share, almost double the 7 cents per share analysts were seeking, according to FactSet. LendingClub’s revenue of $201.9 million also exceeded the expected $190.4 million. ServiceNow — Shares slipped about 1% after the software company posted its third-quarter results. ServiceNow reported adjusted earnings of $3.72 per share on revenue of $2.80 billion. That topped Wall Street’s estimates for $3.46 per share in earnings and $2.74 billion in revenue, per LSEG. Western Union — The money transfer service provider saw shares tick up by 1%. Western Union narrowly topped estimates in the third quarter, reporting adjusted earnings of 46 cents per share on revenue of $1.04 billion. Analysts were looking for 44 cents per share in earnings and revenue of $1.03 billion. The upper end of its full-year guidance came in slightly higher than consensus estimates. Whirlpool — The home appliance company climbed more than 3% after reporting third-quarter earnings that topped expectations. Whirlpool reported $3.43 in adjusted earnings per share, while Wall Street analysts were looking for $3.19, according to LSEG. Net sales were down year over year for the firm. Newmont — The gold mining company tumbled nearly 6%. Newmont reported adjusted earnings of 81 cents per share in the third quarter, while analysts polled by FactSet sought 86 cents per share. Revenue also missed the mark, arriving at $4.61 billion, versus the Street’s expectation for $4.67 billion. Molina Healthcare — Shares surged 10% after the managed care company posted third-quarter earnings results that beat analysts’ expectations on the top and bottom lines. Molina Healthcare posted adjusted earnings of $6.01 per share, better than the LSEG consensus estimate of $5.81 earnings per share. Revenue of $10.34 billion exceeded the forecasted $9.91 billion. Peloton — Peloton shares were down more than 1% in extended trading. However, during the regular session, the connected fitness company’s stock spiked 11% after Greenlight Capital’s David Einhorn told investors at a conference that the stock was undervalued , a person familiar with the hedge fund manager’s remarks told CNBC. — CNBC’s Christina Cheddar-Berk, Alex Harring, Darla Mercado, Sarah Min and Jesse Pound 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.