Check out the companies making headlines in midday trading. Lilium — U.S.-listed shares fell more than 57% after the German air taxi startup said in a regulatory filing that its two main subsidiaries would file for insolvency , which is when debts cannot be repaid, in the next few days. Shares of Lilium, which is a penny stock, traded around the 25-cent mark Thursday afternoon. Tesla — The stock surged more than 20% following the electric vehicle maker’s third-quarter profit beat . CEO Elon Musk forecasted that the company will also see vehicle growth of 20% to 30% in 2025. Newmont — Shares plunged more than 14% on the back of the company’s weaker-than-expected third-quarter earnings. Newmont reported adjusted earnings of 81 cents per share on revenue of $4.61 billion for the period, while analysts polled by FactSet were expecting 86 cents per share on $4.67 billion in revenue. QuantumScape — The battery manufacturer jumped 23% thanks to the company’s third-quarter results matching expectations, per FactSet. For the quarter, the company posted a loss per share of 23 cents. It also said that it has begun producing low volumes of its first B-sample cells. Molina Healthcare — Shares rallied 21% after the managed care company’s latest quarterly results, which beat estimates. Molina Healthcare posted adjusted earnings of $6.01 per share, better than the LSEG consensus estimate of $5.81 in earnings per share. Revenue of $10.34 billion exceeded the forecast $9.91 billion. Whirlpool — Shares popped about 14% after Whirlpool topped third-quarter expectations. The home appliance company posted adjusted earnings of $3.43 per share, more than the earnings of $3.19 per share expected by analysts polled by LSEG. West Pharmaceutical Services — Shares surged 17% after West Pharmaceutical Services reported a third-quarter beat. The maker of packaging components for injectables earned $1.85 per share, adjusted, in its latest quarter, better than the per-share earnings of $1.50 anticipated by analysts, according to FactSet. Revenue of $746.9 million topped the consensus estimate of $709.6 million. CBRE Group — Shares jumped 9% and hit a 52-week high after the commercial real estate firm reported third-quarter adjusted earnings per share and revenue that topped expectations. CBRE also upped its full-year adjusted earnings guidance to $4.95 to $5.05 per share, up from $4.70 to $4.90 a share. Analysts polled by FactSet were anticipating full-year adjusted EPS of $4.82. Raymond James Financial — Shares rose 7% after the financial services firm posted fiscal fourth-quarter adjusted earnings of $2.95 per share. Analysts polled by FactSet had expected just $2.41 per share. The company’s $3.46 billion revenue was also higher than the estimated $3.32 billion. Teradyne — The automation company plunged 9% despite posting a third-quarter non-GAAP earnings and revenue beat. Teradyne also provided fourth-quarter guidance that encompassed FactSet’s earnings and revenue estimates. Carrier Global — Shares fell 8%. The company reported adjusted earnings of 77 cents per share from its continuing operations. Carrier classified its Fire & Security segment as discontinued operations in the last quarter. Therefore, the company’s third-quarter revenue and guidance were not comparable with Wall Street’s estimates. Northrop Grumman — The defense company advanced 2% after reporting an earnings beat. Northrop Grumman posted $7 in earnings per share for the third quarter, beating the average analyst estimate of $6.07 per LSEG. On the other hand, revenue came in at $10 billion for the quarter, below forecasts calling for $10.18 billion. ServiceNow — The software company advanced more than 5%. ServiceNow posted third-quarter adjusted earnings of $3.72 per share, topping Wall Street’s estimate of $3.46 per share, according to LSEG. ServiceNow’s revenue of $2.80 billion also exceeded the $2.74 billion analysts had expected. Mattel — The toymaker jumped 4% after earnings per share exceeded expectations for the third quarter. Mattel reported adjusted earnings of $1.14 per share, surpassing the consensus forecast of 95 cents from analysts surveyed by LSEG. However, the company posted $1.84 billion in revenue for the quarter, slightly under the $1.86 billion figure anticipated by analysts. Boeing — The plane manufacturer slipped roughly 2% after Boeing machinists voted against a new labor contract , further extending a strike that has been going on for more than five weeks. International Business Machines — Shares tumbled about 7% after the tech giant posted third-quarter revenue that disappointed analysts’ expectations. Sales for IBM came out to $14.97 billion in the last quarter, versus the $15.07 billion analysts had expected, per FactSet. — CNBC’s Sean Conlon, Michelle Fox, Alex Harring, Hakyung Kim and Sarah Min 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.