The stock market is rising modestly after Wednesday’s wipeout, with the S&P 500 up 0.64% and the Nasdaq Composite up 0.58%. The Dow Jones Industrial Average added 0.94%, and the Russell 2000 is up 2.26% in recent trading.
Investors are reacting positively to the second quarter's annual GDP growth of 2.8% and the Initial Unemployment Claims of 235k. Both reports were better than previous readings and economists’ forecasts.
S&P 500 big stock movers today
Five S&P 500 stocks making big midday moves are ServiceNow (NOW) (+16%), Molina Healthcare (MOH) (+15%), CBRE Group (CBRE) (+12%), Tyler Technologies (TYL) (+10%) and Pool Corp (POOL) (+10%).
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The worst-performing five S&P 500 stocks with the largest midday drop are Edwards Lifesciences (EW) (-26%), Ford (F) (-17%), LKQ Corp (LKQ) (-12%), West Pharmaceutical (WST) (-10%) and Teradyne (TER) (-10%).
Stocks also worth noting with significant moves today include Tesla (TSLA) (+4%), Lucid (LCID) (+8%), American Airlines (AAL) (+6%) and Lululemon (LULU) (-7%).
Ford shares slump after profit miss
Ford Motor stock slid by 17% on Wednesday after the company released its second-quarter earnings, which missed forecasts.
Related: Veteran analyst unveils Ford stock price target
The carmaker posted revenue of $47.8 billion, 6% higher than a year earlier, but missed the anticipated 48.1 billion. The company also recorded earnings per share of $0.47, lower than the estimated $0.68 per share.
After EV giant Tesla’s Wednesday tumble, Ford also provides a full-year anticipated loss of $5 billion to $5.5 billion for its EV business Model e.
Despite the pressure from lower demand, pricing, and compliance, Ford continues to see opportunities in the EV market. “We've been very vocal about why electric vehicles are so important and a great choice for customers and businesses,” said CEO James Farley in the earnings call, “we will not launch vehicles at a loss that are not good for our business.”
American Airlines climbs despite profit warning
American Airlines shares added 4% midday, even after the company posted a second-quarter performance that missed expectations.
Related: American Airlines sounds warning after in-cabin fire
The Texas-based company reported revenue of $14.3 billion, lower than the anticipated $14.39 billion. Its net income of $717 million is down over 46% from a year ago. Its earnings per share of $1.09 beat the estimated $1.07 per share.
The company has also reduced its expected adjusted earnings per share for the year to a range of $0.70 to $1.30, down from the $2.25 to $3.25 range predicted in the first quarter.
“During the second quarter, we did not perform to our initial expectations due to our prior sales and distribution strategy and an imbalance of domestic supply and demand,” said CEO Robert Isom.
ServiceNow leads the S&P 500 after upbeat results
ServiceNow posted strong second-quarter results and raised its full-year revenue forecast, leading to a 15.5% increase in its stock midday.
Related: Analyst updates ServiceNow stock price target ahead of earnings
The company operates a cloud-based workflow automation platform that helps enterprise organizations improve operational efficiencies. It records an earnings per share of $3.13, which beats analysts’ estimate of $2.83 per share. The revenue of $2.63 billion also beats the anticipated $2.6 billion.
The company has made progress in AI development. Its product, Now Assist, saw its net new annual contract value double quarter-over-quarter, with clients including American Honda, Adobe, and Dell.
“AI platform for business transformation is soaring,” said CEO William McDermott in the earnings call, “It's why Jensen Huang hit it on the head when he said, ‘ServiceNow is the AI operating system for the enterprise.’ Customers are seeing us like Jensen sees us. While our performance has been consistently strong, we take nothing for granted.”
Related: Veteran fund manager sees world of pain coming for stocks
