In midday trading, UnitedHealth saw a 5.2% increase in its shares, driving the Dow Jones Industrial Average higher. The company reported better-than-expected first-quarter revenue and reaffirmed its full-year earnings forecast of $27.50 to $28 per share, excluding items. Analysts had predicted $27.50 per share. Johnson & Johnson, on the other hand, experienced a 2.2% decline despite beating first-quarter profit estimates and reporting in-line revenue. The company adjusted its full-year sales forecast for 2024, now expecting a range of $88 billion to $88.4 billion, compared to the previous forecast of $87.8 billion to $88.6 billion.
Barclays maintained an underweight rating on SolarEdge Technologies due to concerns about fixed costs that could impact profit margins, leading to a 2% decrease in the stock. However, the Wall Street bank raised its price target on SolarEdge to $61 from $50. Morgan Stanley saw a 2.4% increase in its shares following better-than-expected first-quarter results, with gains in the investment bank’s wealth management, trading, and advisory businesses surpassing forecasts. The firm also exceeded analysts’ earnings and revenue estimates. Tesla, on the other hand, experienced a 2.7% drop in its shares as it announced plans to lay off 10% of its workforce, approximately 14,000 employees.
Live Nation Entertainment faced a more significant decline, with shares slumping over 7% following a report that the U.S. Department of Justice would file an antitrust lawsuit against the concert promoter. Bank of America, based in Charlotte, saw a 3.5% decrease in its shares after reporting an 18% drop in quarterly profit to $6.67 billion, or 76 cents per share. Excluding a $700 million FDIC assessment, profit was 83 cents per share. Revenue also slipped 1.6% to $25.98 billion, nearly in line with estimates, as net interest income decreased compared to the previous year. Overall, the market saw a mix of gains and losses among major companies on Tuesday.
Overall, the market saw a mix of gains and losses among major companies in midday trading. UnitedHealth led the way with a 5.2% increase in its shares after reporting strong first-quarter revenue and reaffirming its full-year earnings forecast. Johnson & Johnson, despite beating profit estimates, experienced a 2.2% decline in its shares. SolarEdge Technologies faced a 2% drop after concerns about fixed costs impacting profit margins. Morgan Stanley, on the other hand, saw a 2.4% increase following better-than-expected first-quarter results. Tesla, however, experienced a 2.7% decrease after announcing plans for workforce layoffs.
Live Nation Entertainment faced a significant decline of over 7% amid reports of a pending antitrust lawsuit by the U.S. Department of Justice. Bank of America also saw a 3.5% decrease in its shares following an 18% drop in quarterly profit and a decline in net interest income. The market as a whole remained volatile, with various companies experiencing both gains and losses based on their individual performance and external factors. Analysts will continue to monitor these developments to assess the overall impact on the market and specific industries.
