Pedestrians walk by a sign posted outside a Charles Schwab office in San Francisco, April 17, 2023.
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Check out the companies making headlines in midday trading.
Morgan Stanley — Shares of the James Gorman-led bank jumped more than 6% after the firm posted second-quarter earnings and revenue that topped analysts’ expectations. The results were helped by Morgan Stanley’s record revenue from wealth management.
Bank of America — Bank of America shares rose more than 4% after the company reported second-quarter financial results. Earnings came in at 88 cents a share, although analysts estimated a profit of 84 cents per share, according to a Refinitiv estimate. The bank posted revenue of $25.33 billion fueled by a 14% jump in net interest income amid higher rates. Analysts anticipated revenue of $25.05 billion.
Charles Schwab — The brokerage stock popped 12.6% after reporting stronger-than-expected results for the second quarter. Charles Schwab reported adjusted earnings of 75 cents per share on $4.66 billion in revenue. Analysts surveyed by Refinitiv had expected EPS of 71 cents on $4.61 billion in revenue.
Microsoft — Microsoft shares jumped 4%. The software giant announced pricing for its artificial intelligence Copilot tool. Microsoft also announced an expanded partnership with Meta Platforms to make the social media company’s open-source large language model available on Azure and Windows.
Regional bank stocks — Regional bank stocks gained on Tuesday on the heels of a fresh batch of bank results, lifting the SPDR S&P Regional Banking ETF (KRE) more than 4%. Western Alliance popped more than 8% ahead of earnings after the bell. PacWest was up 5.8%, while FB Financial gained more than 6% and Zions Bancorporation rose 3.4%.
UnitedHealth — The health-insurance stock gained 3.3% after being upgraded to outperform from market perform by Bernstein. The firm said UnitedHealth is a “best-in-class” managed-care and value-based care company with an attractive valuation and “large runway of growth.”
Verizon, AT&T — Verizon rose 2.6%, reversing the recent downtrend in shares following a report that linked the companies to lead-encased cables and concerns from analysts. Elsewhere, AT&T lost about 0.6%.
Bank of New York Mellon — Shares rose more than 4% after Bank of New York Mellon reported second-quarter revenue and profit that beat Wall Street’s expectations.
Pinterest — Shares hit a high not seen since early 2022 intraday and rose 4%. Evercore ISI said improving advertising trends are creating an inflection point for the stock.
PNC Financial — Shares gained 2.5% after PNC Financial reported second-quarter earnings that topped Wall Street’s earnings expectations but came in slightly short on revenue. The financial services company reported earnings of $3.36 per share on revenue of $5.29 billion.
Prologis — The logistics real estate stock lost more than 3% after posting second-quarter results that fell short of Refinitiv revenue estimates. Prologis reported net income of $1.31 a share and rental revenue of $1.65 billion.
Novartis — U.S.-listed shares of Novartis jumped 4.6%. The Swiss pharmaceutical firm reported second-quarter earnings that topped estimates, according to StreetAccount. Novartis posted core earnings of $1.83 per share, better than the $1.70 estimate. It posted revenue of $13.62 billion, more than the consensus $13.23 billion. The company raised its full-year forecast. Its board of directors also approved a separation from its Sandoz division.
Masimo — Shares tumbled 20% after Masimo pre-announced second-quarter revenue that was weaker than consensus expectations, and lowered its full-year guidance. The medical-device maker said in its guidance that second-quarter revenue would come in at $453 million to $457 million, lower than expectations of $553.3 million, according to consensus estimates from FactSet. Stifel downgraded the stock to hold from buy after the pre-announcement, according to StreetAccount.
Lockheed Martin — The aerospace company gave back earlier gains that followed the release of its latest financial update. Lockheed Martin reported earnings of $6.73 that beat expectations of $6.45, according to FactSet, and revenue of $16.69 billion, compared with expectations of $15.92 billion. The stock finished nearly 3% lower.
— CNBC’s Tanaya Macheel, Sarah Min, Yun Li, Alex Harring and Michelle Fox contributed reporting.
