Stock futures declined Tuesday after Moody’s Investors Service downgraded its debt ratings on a number of small and midsize U.S. and said it may downgrade the credit ratings on six major U.S. banks, including
U.S. Bancorp
and
State Street.
These stocks were poised to make moves Tuesday:
Eli Lilly
(LLY) was rising 9.5% in premarket trading after the pharmaceutical giant smashed second-quarter earnings and sales expectations and said it expects adjusted earnings in 2023 of $9.70 to $9.90 a share, up from a prior forecast of $8.65 to $8.85.
United Parcel Service
(UPS) was falling 5.7% in premarket trading after the shipping giant cut its revenue outlook for 2023 and second-quarter sales missed analysts’ estimates.
U.S. Bancorp
(USB) declined 2.2% and
State Street
(STT) fell 1.2% after Moody’s placed the credit ratings of six major U.S. banks on review for downgrade. Also on review for downgrade were
Bank of New York Mellon
(BK),
Northern Trust
(NTRS),
Cullen/Frost Bankers
(CFR) and
Truist Financial
(TFC).
Commerce Bancshares
(CBSH) and
BOK
Financial (BOKF) were among the smaller banks that had their debt ratings downgraded.
AMC Entertainment
(AMC) rose 4.5% after the movie-theater chain reported second-quarter earnings of 1 cents a share vs. analysts’ expectations that called for a loss of 4 cents a share.
Palantir Technologies
(PLTR) was down 0.7% in premarket trading after reporting second-quarter adjusted earnings and revenue that met analysts’ estimates and raising its financial guidance. The software company also said it would be buying back $1 billion of stock,
Palantir
‘s first repurchase program since the shares began trading in 2020.
Lucid
(LCID) reported a wider-than-expected second-quarter loss and sales that missed estimates but the rose 1.7% in premarket trading after the electric-vehicle maker said it remained on track for production of more than 10,000 units in 2023.
Chegg
(CHGG) jumped 22% after the online learning software posted better-than-expected second-quarter sales, and laid out a new AI-focused strategy. CEO Dan Rosensweig said
Chegg
launched the beta version of its generative AI experience in May and that feedback has been very positive.
Paramount Global
(PARA) was rising 2.9% after it agreed to sell book publisher Simon & Schuster to
KKR
for $1.62 billion in cash. The media giant also reported second-quarter adjusted earnings that beat analysts’ estimates.
U.S.-listed shares of
Li Auto
(LI) fell 2.1%. The Chinese electric-vehicle maker reported second-quarter earnings that beat analysts’ estimates and its revenue forecast for the third quarter also topped expectations.
RingCentral
(RNG), the cloud-based telecommunications provider, said founder Vlad Shmunis would be stepping down as chief executive later this month and transitioning to executive chairman. RingCentral’s new CEO will be Tarek Robbiati, who came from
Hewlett Packard Enterprise
(HPE), where he most recently served as chief financial officer. RingCentral shares tumbled 12%.
Beyond Meat
(BYND) declined 15% after second-quarter revenue dropped 30% to $102.1 million and the maker of plant-based meats reduced its revenue forecast for the year.
International Flavors & Fragrances
(IFF) tumbled 23% after cutting its sales forecast for the year “reflecting the company’s expectation that volumes in the second half of 2023 will not recover as previously expected.”
Write to Joe Woelfel at [email protected]
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