The stock market is flat to mixed following last week’s slump. The S&P 500 is up 0.12%, and the Nasdaq Composite is up 0.09%. The Dow Jones Industrial Average is down 0.06%, and the Russell 2000 is down 1.2%. Mag 7 tech stocks are up midday.
McDonald's and ON Semiconductor released earnings results this morning, both contributing to notable moves in share prices.
Investors are also expecting more financial results from Microsoft, P&G, AMD, Pfizer, and Starbucks on Tuesday.
S&P 500 big stock movers today
Five S&P 500 stocks making big midday moves are ON Semiconductor Corp ( (ON) , +12.7%), Revvity Inc (RVTY, +6.3%), Tesla Inc ( (TSLA) ,+6.1%), Resmed Inc ( (RMD) , +4.9%), and McDonald’s Corp ( (MCD) , +4.4%).
Related: Analyst resets Tesla stock price target on full-service driving future
The worst-performing five S&P 500 stocks with the largest midday drop are Enphase Energy Inc ( (ENPH) , -4.7%), Deere & Co ( (DE) , -3.4%), Southwest Airlines Co ( (LUV) , -3.2%), First Solar Inc ( (FSLR) , -3.5%), and Insulet Corp ( (PODD) , -3%).
Stocks also worth noting with significant moves include Microsoft ( (MSFT) , +0.8%), Amazon ( (AMZN) , +0.9%), Meta Platforms ( (META) , +1.5%), Apple ( (AAPL) , +0.45%), Alibaba ( (BABA) +2.39%), and Coinbase ( (COIN) , -1.9%).
Microsoft, Amazon, and Meta Platforms are set to report quarterly earnings this week, making them a focus.
Related: Big tech earnings could save market rally or trigger summer slump
ON Semiconductor jumps after upbeat earnings
ON Semiconductor Corp stock price surged 13%, the biggest midday jump in almost two years, after the company revealed second-quarter financial results that beat forecasts.
The chip maker reported a revenue decline of 17.2% year-on-year to $1.74 billion, beating the estimated $1.73 billion. The earnings of $0.96 per share also beat the $0.92 forecast. The company also posted its revenue guidance for the next quarter of $1.7 billion to $1.8 billion.
The company highlighted gains in the automotive industry. "We remain dedicated to driving growth through market share gains, doubling down on investments in strategic markets, and expanding the breadth of our portfolio of industry-leading products with analog and mixed-signal solutions," said CEO Hassane El-Khoury.
McDonald’s sales fall, but shares are up
McDonald's shares added 4% even after the company reported declining same-store sales for the first time since the pandemic.
For the second quarter of 2024, the fast food giant posted diluted earnings per share of $2.80, a decrease of 11% that missed the expected $3.07 a share. Revenue of $6.49 billion also missed the $6.62 billion forecast.
Related: McDonald’s new $5 Meal Deal isn’t going as planned (so far ...)
McDonald's experienced a decline in global same-store sales for the first time in nearly four years.
Nevertheless, consumers still recognize the company as “the value leader versus our key competitors,” according to Chairman, President and CEO Chris Kempczinski.
The company also anticipates same-store sales will continue to decline in the coming quarters.
The company introduced a $5 meal deal in the US in June, which is running ahead of expectations and is getting lower-income consumers back into McDonald’s stores, according to McDonald’s U.S. President Joe Erlinger.
Arm sinks after analyst downgrades
Shares of Arm Holdings (ARM) lost 4.7% as HSBC analyst downgraded the company before its Wednesday earnings report.
HSBC downgraded the semiconductor company from "Hold" to "Reduce" yet set a higher price target of $105, up from $100.
Related: Analyst tweaks AMD stock price target ahead of Q2 earnings
Analyst Frank Lee said in a note to investors that the artificial intelligence PC narrative is not as bullish as previously expected, given uncertainty over the total addressable market potential.
Lee also noted that the 110% year-to-date growth is a significant premium to other semiconductor peers.
Formula company drops after verdict
Abbott Laboratories (ABT) shares were hit but rebounded a bit midday after the jury ordered the company to pay $495 million in a product-liability lawsuit. The lawsuit caused a 4% drop earlier this morning.
The baby formula maker was sued by Illinois resident Margo Gill, who alleged that the company failed to warn that its formula could cause a potentially deadly disease called necrotizing enterocolitis (NEC) in infants.
Last Friday, the jury ordered the company to pay $95 million in compensatory damages and $400 million in punitive damages.
The company's shares briefly touched $100 per share intraday, down from nearly $109 as recently as July 25. As of this writing, Abbott's stock price is down 1.2%.
Abbott’s slump is also weighing on its British competitor Reckitt Benckiser, which lost 9% on Monday.
Related: Veteran fund manager sees world of pain coming for stocks
