The stock market is trading lower midday. The S&P 500 lost 0.35% while the tech-heavy Nasdaq Composite dropped 0.53%. The Dow Jones Industrial Average is flat and the Russell 2000 Index lost 0.63%.
S&P 500 big stock movers today
Five S&P 500 stocks making big midday moves are:
Constellation Energy (CEG) 22.2% Vistra (VST) 16% Nike (NKE) 6% CrowdStrike (CRWD) 5.6% NRG Energy (NRG) 5.6%
The worst-performing five S&P 500 stocks with the largest midday drop are:
FedEx (FDX) -13.6% ON Semiconductor (ON) -6.2% Old Dominion Freight Line (ODFL) -5.5% Lennar (LEN) -4.3% Albemarle (ALB) -4.2%
Stocks also worth noting include:
Tesla (TSLA) -2.4%Nvidia (NVDA) -1.6%Apple (AAPL) +0.7%Amazon (AMZN) -0.1%AMD (AMD) -1.7%
FedEx lowered its full-year outlook.
FedEx tumbled on earnings miss
FedEx slumped 14% after the company reported revenue and earnings that missed consensus analyst estimates.
For the quarter ended Aug. 31, the company earned $3.60 a share, down 21% year-over-year and below the $4.86 estimate. Revenue was $21.6 billion, down from $21.7 billion last year and short of the $21.96 billion forecast.
Related: Analysts reset FedEx stock price targets after earnings
FedEx has lowered its full-year outlook, now expecting low-single-digit revenue growth instead of the previous mid-range estimate. It expects earnings per diluted share of $17.90 to $18.90, down from $18.25 to $20.25. Analysts predict earnings of $19.96 per share and $89.69 billion in revenue.
“The magnitude of the Fed rate cuts yesterday signals the weakness of the current environment,” Rajesh Subramaniam, Chief Executive Officer of FedEx, said during the earnings call, “Now we’re not assuming a significant comeback on the industrial environment in the rest of this calendar year.”
Constellation surged after Microsoft purchase plan
Constellation Energy shares soared more than 22% after the company said it planned to restart the Three Mile Island nuclear plant.
Microsoft will buy electricity under a 20-year agreement to power its data centers with carbon-free energy, marking Constellation’s largest-ever power purchase agreement.
“The decision here is the most powerful symbol of the rebirth of nuclear power as a clean and reliable energy resource,” Constellation CEO Joe Dominguez said.
Nike higher after CEO change
Nike stock jumped 6% after yesterday’s announcement of a change in the CEO’s office.
Veteran Elliott Hill will step out of retirement and take over for John Danahoe in October. Hill was president of Nike’s consumer and marketplace division before retiring in 2020.
Related: Analysts revisit Nike stock price targets after major CEO shakeup
Nike shares have fallen 20% since Jan. 13, 2020, when Donahoe started as CEO, according to Yahoo Finance data.
In June, Nike warned of a 10% sales drop for the current quarter, citing weak demand in China and global consumer trends, far worse than the expected 3.2% decline. Following the report, Nike had its worst trading day ever.
More Retail Stocks:
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“Given our needs for the future, the past performance of the business, and after conducting a thoughtful succession process, the Board concluded it was clear Elliott’s global expertise, leadership style, and deep understanding of our industry and partners, paired with his passion for sport, our brands, products, consumers, athletes, and employees, make him the right person to lead Nike’s next stage of growth,” said Mark Parker, Nike’s executive chairman.
Related: Veteran fund manager sees world of pain coming for stocks
