Los Angeles, CaliforniaJan. 11, 2023 Flights prepare to take off at LAX on Jan. 11, 2023 after an FAA computer problem.
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Check out the companies making headlines in midday trading.
Cognizant — Shares of Cognizant rose 8% after the IT company raised its fourth-quarter revenue guidance. It also named Ravi Kumar S as CEO and a member of the board, effective immediately. Kumar was previously president of Infosys.
American Airlines — Shares rose more than 7% after the airline boosted its revenue and profit estimates for the fourth quarter. American Airlines, which reports earnings Jan. 26, cited strong demand and high fares for the hike in estimates.
Logitech International — The keyboard and mouse maker fell more than 16% after Logitech announced preliminary results that showed declining sales and earnings. For the quarter ending Dec. 31, Logitech said it expects net sales to be down more than 20% year over year in US dollars. Operating income is projected to fall more than 30%. CEO Bracken Darrell said in a statement that a slowdown in enterprise sales was partly to blame for the results.
Disney — Shares of Disney rose 4.1% after the company announced Mark Parker, the executive chairman of Nike, as its new chairman. In addition, the company opposed Nelson Peltz of Trian as he pushes for a seat on the board, igniting a proxy battle.
Hewlett Packard Enterprise — The IT giant fell 2.3% following its acquisition of startup Pachyderm, a startup that delivers software to automate reproducible machine learning pipelines that target large-scale AI applications. Separately, Evercore ISI downgraded the stock Thursday to in line from outperform.
KB Home — Shares of the homebuilding stock slipped 2.8% after earnings fell short of Wall Street’s expectations. The homebuilder reported earnings per share of $2.47, well below a StreetAccount forecast of $2.86. The company also warned of price cuts ahead.
Tesla — Tesla fell 2% following a report that company plans to expand capacity in its Shanghai factory have been put on hold due to data concerns raised by China’s central government. The expansion was initially set to begin in the middle of the year, according to Bloomberg.
Energy stocks — Energy stocks were among the top gainers in Thursday’s session as oil prices got an extended boost following US CPI data. Hess spirit Halliburton rose more than 4%. SLB, Marathon Petroleum, Occidental Petroleum, Coterra spirit Devon Energy each advanced more than 2%.
Caterpillar — Shares rose 2.4%, notching a 52-week high, after JPMorgan added the manufacturer to its focus list, saying its margin upside potential is currently underappreciated.
Bed Bath & Beyond — Bed Bath & Beyond rallied 18%, building on gains after a handful of meme stocks surged Wednesday. The stock surged almost 69% in Wednesday’s session.
— CNBC’s Michelle Fox, Samantha Subin, Carmen Reinicke, Alex Harring and Jesse Pound contributed reportingx