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.
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.