Check out the companies making headlines in midday trading: Tapestry , Capri — Shares of Tapestry rallied more than 14%, while Capri’s stock tumbled 47%. The sharp moves come after a judge ruled in favor of the Federal Trade Commission’s case to block Tapestry’s acquisition of Capri . L3Harris Technologies — Shares rose 3.5% after the defense company reported a top- and bottom-line beat in the third quarter. L3Harris also raised the lower end of its full-year earnings forecast, saying it now expects adjusted earnings in the range of $12.95 to $13.15 per share, compared with a prior forecast of $12.85 to $13.15 a share. Analysts polled by FactSet were estimating $13.04 in earnings per share for the full year. Colgate-Palmolive — The household goods producer fell more than 3% lower despite beating consensus estimates on the top and bottom lines in the third quarter. Colgate posted adjusted earnings of 91 cents per share on revenue of $5.03 billion, while analysts had forecast 89 cents in earnings per share and $5 billion in revenue, per LSEG. Western Digital — Shares of the data storage company surged 7% after reporting an earnings beat in the fiscal first quarter. Western Digital posted adjusted earnings of $1.78 per share, versus consensus forecasts for $1.72 per share, according to LSEG. Meanwhile, revenue of $4.1 billion fell slightly short of analysts’ estimate for $4.12 billion. Digital Realty Trust — The real estate investment trust jumped 11% after reporting record lease bookings for the third quarter. The company also narrowed its guidance for core funds from operations in the full year, calling for $6.65 to $6.75 per share. Analysts polled by FactSet had expected $6.69 per share. Coursera — Shares of the online course provider declined around 8%. The company called for fourth-quarter revenue of $174 million to $178 million, versus the $174 million anticipated by the Street, per LSEG. Management cited weak demand and retention trends. Meanwhile, third-quarter results beat expectations on both top and bottom lines. ResMed — The medical equipment manufacturer added more than 7% after topping analysts’ estimates in the fiscal first quarter. ResMed announced adjusted earnings of $2.20 per share on revenue of $1.22 billion. Analysts surveyed by FactSet had called for a profit of $2.05 per share and revenue of $1.19 billion. HCA Healthcare — Shares of the hospital operator declined more than 9%. HCA Healthcare reported revenue of $17.49 billion versus analyst’ estimates for $17.54 billion, according to FactSet. Adjusted earnings before interest, taxes, depreciation and amortization of $3.27 billion was just slightly short of consensus calls for $3.28 billion. Booz Allen Hamilton — Shares of the defense contractor soared nearly 10% after the company raised its full-year earnings and revenue growth guidance. In the fiscal second quarter, Booz Allen Hamilton reported adjusted earnings of $1.81 per share on $3.15 billion in revenue. Analysts polled by FactSet had estimated earnings of $1.47 per share and revenue of $2.97 billion. — CNBC’s Alex Harring, Lisa Kailai Han and Sean Conlon 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.