Index Climbs to Start Week of Key Earnings Reports


Key Takeaways

  • The S&P 500 rose 1.1% on Monday, Oct. 16, 2023, posting solid gains as the markets kick off a week of noteworthy earnings reports.
  • Shares of Charles Schwab jumped as earnings at the discount brokerage exceeded estimates and the firm said that it would slash expenses.
  • Moderna shares slumped as the drug maker warned that it couldn’t yet determine demand for COVID-19 vaccines in the U.S. this year.

U.S. equities began the week in strong fashion, as the S&P 500 added 1.1% in Monday’s session, with key earnings reports set to come out over the next few days. The Dow and Nasdaq also climbed about 1%.

In the financial sector, better-than-expected earnings and a major cost-cutting plan lifted shares of discount brokerage Charles Schwab (SCHW) 4.7%. Raymond James Financial (RJF) shares rose 2.5% as the firm struck a deal to use tax-management technology provided by JPMorgan Chase (JPM) for its managed accounts.

News Corp. (NWSA) shares gained 4.7% following reports that activist investor Starboard Value increased its stake in Rupert Murdoch’s media company, seeking strategic and governance changes. Among the proposed changes is ending the dual-class stock structure that has allowed the Murdoch family to control an almost 40% voting bloc.

Moderna (MRNA) shares sank 6.5% as the drug maker said it was comfortable with its full-year COVID-19 vaccine sales outlook but warned that it was too early to tell what the vaccine rates in the U.S. will be.

Moderna made the announcement after rival Pfizer (PFE) cut its full-year guidance, with the lower expectations “solely due to COVID products.” However, Pfizer shares increased 3.6% as Jefferies upgraded the stock, calling it attractive following the change in forecast.

Henry Schein (HSIC) shares tumbled 2.1% after word that the health care equipment firm’s manufacturing and distribution businesses were victims of a cyberattack.

Organon (OGN) shares lost 2.7% after Daré Bioscience (DARE) said the health care firm will pay $1.8 billion as part of a partnership deal following the first commercial sale of Daré Bioscience’s vaginal gel. Daré shares skyrocketed 14.3%.

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