General Motors (GM) witnessed a near 6% decline in shares on Thursday, as the automaker issued another cautionary statement regarding the slowdown of its electric vehicle (EV) production due to challenges in assembling updated battery modules.
CFO Paul Jacobson, at a conference, reiterated concerns already expressed by CEO Mary Barra during the second-quarter earnings release last month. The battery module complications specifically impacted the manufacturing of the Cadillac Lyriq.
Although over 1,000 units were produced in July, this fell significantly below GM’s initial estimates. This setback follows last year’s production targets’ miss and a subdued delivery of fewer than 2,400 luxury SUVs in the first half of this year. Consequently, General Motors shares plunged to their lowest level in over two months post the announcement. -Bill McColl YCharts.
After a promising surge of almost 400 points in early trading, the Dow Jones Industrial Average experienced a late-day downturn, concluding with a minimal 0.15% or 52-point gain. Initial optimism was fueled by an inflation report indicating ongoing moderation in price pressures throughout July. Investors anticipate another glimpse of inflation’s impact on the economy as the Producer Price Index is slated for release before the market opens tomorrow.
On a related note, following the announcement of price hikes for its streaming services, Walt Disney Co. (DIS) shares surged by 4.9%, leading the Dow’s upward trajectory. Despite revenue slightly underperforming expectations, Disney’s profit exceeded Wall Street estimates, further bolstering investor sentiment. Notable tech stocks rebounded from the previous day’s dip, with Intel (INTC) gaining 1.2% and Salesforce (CRM) climbing by 1.1%. Amgen (AMGN) shares also rose by 1%, extending their upward trend after surpassing quarterly earnings projections last week. Johnson & Johnson (JNJ) secured U.S.
Food and Drug Administration approval for its blood cancer therapy. However, the announcement failed to prevent a 0.6% decline in the company’s shares. Merck & Co. (MRK) also experienced a 0.5% dip. Nike (NKE) initially recorded an almost 2% surge in early trading, but faltered later in the day, ending with a 0.6% decline. In the banking sector, Goldman Sachs (GS) and JPMorgan Chase (JPM) faced drops of 0.7% and 0.1%, respectively, as Dow banking stocks continued to be impacted by Moody’s downgrades earlier in the week. -Terry Lane
Wynn Resorts Ltd. (WYNN) observed a 2.6% upswing in shares on Thursday following a robust second-quarter earnings and revenue report. The company transitioned from a $130 million loss in the corresponding period last year to a $105 million profit in the three months concluding in June.
Notably, revenue escalated by 75% compared to the same quarter in the previous year, totaling $1.6 billion. The surge was particularly pronounced in Macau, where relaxed travel restrictions drove operating revenue up by over $600 million in a year-over-year comparison. Additionally, Wynn Resorts initiated the construction of Wynn Al Marjan Island, a 1,500-room luxury hotel and casino situated outside Ras Al-Khaimah, UAE. -Bill McColl YCharts.
Catch a glimpse of the notable market movers in the midday trading session. Explore the significant shifts in shares of companies such as Alarm.com Holdings Inc. (ALRM), CyberArk Software Ltd. (CYBR), MercadoLibre Inc. (MELI), Krispy Kreme Inc. (DNUT), and Ralph Lauren Corp. (RL).
AppLovin Beats Profit, Sales Forecasts on Demand for its Updated AI Engine 8 hr 25 min ago
AppLovin (APP) witnessed a substantial surge as the AI-driven mobile marketing platform exceeded expectations with its fiscal 2023 second-quarter results. Reporting earnings per share (EPS) of 22 cents, nearly three times the analysts’ estimates, AppLovin showcased its impressive performance.
Despite a 3.3% decline in revenue to $750.2 million, the company outperformed forecasts. The introduction of its latest AI-based advertising engine, AXON 2.0, within its AppDiscovery platform significantly contributed to this achievement. Encouraged by these results, AppLovin anticipates sales ranging from $780 million to $800 million for the current quarter, surpassing initial predictions. As a testament to its success, AppLovin shares surged by 24%, reaching their highest level in nearly a year.