Stocks closed higher Monday as Wall Street prepared for a busy week of corporate earnings, with reports from Tesla and Netflix among the highlights.
These stocks made moves Monday:
Pfizer
(PFE) slashed revenue expectations for the year to $58 billion to $61 billion, down from a previous outlook of $67 billion to $70 billion as the drug maker expects a drop in sales of $9 billion from its Covid-19 vaccine and anti-viral treatment Paxlovid.
Pfizer
also forecast adjusted earnings $1.45 to $1.65 a share, down from a prior range of $3.25 to $3.45. Pfizer shares closed up 3.6% after falling during the premarket session. Analysts at Jefferies upgraded the stock to Buy from Hold.
Shares of Pfizer’s Covid vaccine partner,
BioNTech
(BNTX), dropped 6.4%. Other Covid vaccine makers
Moderna
(MRNA), and
Novavax
(NVAX) declined 6.5% and 6%, respectively.
Separately, reports from the Financial Times and Reuters said European Union regulators delayed a decision to approve
Novavax’s
revised Covid-19 vaccine.
Charles Schwab
(SCHW), the largest publicly traded U.S. brokerage, reported third-quarter adjusted earnings of 77 cents a share, beating analysts’ estimates of 74 cents. Revenue fell 6% to $4.61 billion. The stock rose 4.7%.
Lululemon Athletica
(LULU) was up 10% to $416.64. It will be joining the S&P 500 on Wednesday, replacing
Activision Blizzard
(ATVI), which was acquired by
Microsoft
(MSFT) last week.
Alignment Healthcare
(ALHC) jumped 17% to $7.76 after shares of the provider of health care services for seniors were upgraded to Strong Buy from Outperform at Raymond James and the price target was raised to $10 from $9.
Instacart
(CART) was initiated with a Buy recommendation at
Goldman Sachs
and a price target of $48. Shares of the grocery delivery service, which officially is known as Maplebear, also were initiated with Buy ratings at Baird,
Stifel,
and
Piper Sandler.
The stock was down 2.8% to $24.85.
Starboard Value has built a stake in
News Corp
(NWSA) and the activist shareholder plans to push for strategic and governance changes, The Wall Street Journal reported, citing people familiar with the matter. Starboard’s stake in
News Corp
is “sizeable,” the people said. News Corp is the owner of Dow Jones, which publishes the Journal, Barron’s, and MarketWatch. News Corp’s class A shares rose 4.7%.
Varonis Systems
(VRNS) was rising 6.7% to $32.63 after shares of the cybersecurity company were upgraded to Overweight from Equal Weight and the price target was boosted to $39 from $34.
Rite Aid
(RAD) filed for bankruptcy late Sunday, plans to close more of its stores and named a new chief executive as part of a restructuring. The stock fell 16.8% to 65 cents. Competitor
CVS Health
(CVS) was flat.
Earnings reports are expected later this week from
Bank of America
(BAC),
Goldman Sachs
(GS),
Johnson & Johnson
(JNJ),
Lockheed Martin
(LMT),
United Airlines
(UAL),
Morgan Stanley
(MS),
Netflix
(NFLX),
Procter & Gamble
(PG),
Tesla
(TSLA),
American Airlines
(AAL),
AT&T
(T),
Taiwan Semiconductor Manufacturing
(TSM), and
American Express
(AXP).
Write to Joe Woelfel at [email protected]
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