- Wall Street indexes traded narrowly as earnings and deals influenced stock moves
- SpaceX shares fell below IPO price for the first time after four sessions of losses
- Apple rose 4% on regulatory approval for its AI platform in China, boosting partners
Wall Street's major indexes traded in a narrow range on Wednesday, but individual stocks delivered sharp moves as investors reacted to earnings, deal speculation, analyst calls and company-specific developments.
SpaceX remained under pressure, with shares extending losses for a fourth straight session and slipping below their $135 initial public offering price for the first time.
Apple rallied about 4% to a record high after reports said its Apple Intelligence platform had cleared a key regulatory hurdle in China, paving the way for the AI service to be offered on iPhones in the country. While no launch date has been announced, the development also boosted Apple's local partners. Alibaba gained about 5%, while Baidu rose roughly 2%.
Memory-chip makers retreated after the previous session's rally. Micron, Seagate and Western Digital each fell around 8%, while Sandisk dropped more than 11%. The decline followed market speculation that competition from Chinese memory-chip manufacturers could intensify after reports suggested ChangXin Memory Technologies (CXMT) was seeing robust investor demand ahead of its planned Shanghai listing.
ALSO READ: SpaceX Craters Below IPO Price For First Time; Shares Down 40% From Post-Listing Peak
S&P 500 was up only marginally by 0.08%, whereas the Dow Jones Industrial Average logged a 0.1% uptick.
Restaurant chain Cava climbed 5.5% after Morgan Stanley upgraded the stock to overweight from equal weight. The brokerage described Cava as having a defensible valuation and one of the strongest fundamental stories in restaurants.
Lionsgate advanced more than 6% after Reuters, citing three people familiar with the matter, reported that the studio is exploring a sale. The report said France's Bollore Group has expressed interest, while Banijay Group is also seen as a potential suitor.
Insurance stocks weakened after Progressive reported a 31% year-on-year decline in June income. The insurer also posted a higher combined ratio of 90%, compared with 86.6% a year earlier. The results weighed on peers, with Allstate, AON and Travelers also trading lower.
Electric-vehicle maker Lucid Group surged 19% after dismissing reports that it was considering bankruptcy protection or a take-private transaction. The company said it has sufficient liquidity to fund operations into next year and described the reports as completely false.
Asset manager BlackRock jumped more than 7% after reporting second-quarter results that topped analyst expectations. The company posted adjusted earnings of $13.91 per share, ahead of the LSEG consensus estimate of $12.59, while revenue also exceeded forecasts.
Pentair slumped more than 17% after issuing preliminary second-quarter results below Wall Street estimates. The company forecast adjusted earnings of $1.12 per share, well below the FactSet consensus of $1.48.
Morgan Stanley edged higher after reporting record second-quarter revenue and profit. The bank posted earnings of $3.46 per share, comfortably above analysts' expectation of $2.94.
ALSO READ: IBM Jitters Fade: Infosys, Wipro ADRs Recover; Accenture, Cognizant See Uptick
Among the day's biggest gainers, PayPal soared 17% after Reuters, citing two people familiar with the matter, reported that payments firm Stripe and private-equity firm Advent had offered to acquire the company for $53 billion. According to the report, the proposal values PayPal at $60.50 per share and was submitted earlier this month.
Healthcare insurer Elevance Health fell 10% despite reporting second-quarter revenue above consensus estimates and raising its full-year earnings guidance to slightly above market expectations.
Meanwhile, Bank of New York Mellon gained nearly 3% after posting better-than-expected quarterly earnings and revenue. The lender also projected double-digit revenue growth in 2026, although it warned that expenses are expected to rise faster than previously anticipated.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.