These Stocks Moved the Most Today: Tesla, Alphabet, IBM, Dow Inc., Honeywell, UnitedHealth, Southwest, American, and More — Barrons.com
Dow Jones Newswires ·
By Joe Woelfel, Mackenzie Tatananni, and Connor Smith
Stocks were mixed Thursday. The Dow Jones Industrial Average fell more than 300 points after Honeywell and International Business Machines slumped on quarterly earnings updates, and as UnitedHealth Group traded lower after saying it was "complying with formal criminal and civil requests" from the U.S. Department of Justice.
These stocks made notable moves Thursday:
Tesla fell 8.2% after reporting a 16% decline in net income on a 12% drop in revenue to $22.5 billion. Revenue from Tesla's automotive business and energy business declined 16% and 7%, respectively. CEO Elon Musk said production had begun on a less expensive EV and that sales could start in the fourth quarter. He also discussed plans for Tesla to "greatly expand" its robo-taxi service, saying the service should cover about "half the U.S. population" by the end of the year.
Second-quarter earnings at Alphabet topped analysts' estimates and sent shares of the Google parent up 1%. Alphabet reported earnings of $2.31 a share on revenue of $96.43 billion, beating calls for earnings of $2.19 a share on revenue of $93.99 billion. Cloud revenue in the period jumped to $13.62 billion from $10.35 billion a year earlier. Alphabet said it was raising its capital-expenditure plans for the year, targeting $85 billion, up from a previous call for $75 billion. Chief Executive Sundar Pichai attributed the move to the "strong and growing demand for our cloud products and services."
IBM declined 7.6% even after the technology giant reported second-quarter adjusted earnings of $2.80 a share, above the $2.65 a share analysts had anticipated. Revenue of $17 billion beat expectations of $16.6 billion. IBM said it expects at least 5% revenue growth in constant currency in 2025, and now expects to generate more than $13.5 billion in free cash flow. This represents an increase from April, when IBM said it expected to generate about $13.5 billion. Coming into the report, IBM shares had risen 28% this year.
UnitedHealth was down 4.8% after the health insurance company said it had "full confidence in its practices" and was " committed to working cooperatively" with the Justice Department. The Wall Street Journal earlier this year reported the Justice Department was investigating the company's Medicare billing practices, but UnitedHealth hadn't formally confirmed the news.
Union Pacific fell 4.5% and Norfolk Southern was down 0.8% after the two railroad companies said they were "engaged in advanced discussions regarding a potential business combination." Earlier Thursday, Union Pacific posted solid second-quarter earnings that topped analysts' forecasts.
T-Mobile US rose 5.8% after the telecommunications company reported better-than-expected second-quarter earnings and revenue and raised guidance for postpaid net customer additions. For the year, T-Mobile said it now expects postpaid net customer additions of between 6.1 million and 6.4 million, an increase from prior guidance of 5.5 million to 6 million.
Enterprise-software company ServiceNow reported better than expected second-quarter adjusted earnings and revenue and raised its full-year subscription revenue guidance as demand for its artificial-intelligence-powered enterprise software remained strong. The stock rose 4.2%.
Honeywell International fell 6.2%. The industrial conglomerate delivered a solid beat-and-raise in the second quarter as it prepares to break into three pieces. Honeywell reported adjusted earnings of $2.75 a share on sales of $10.4 billion. Analysts were expecting earnings of $2.66 on sales of $10.1 billion.
Dow Inc. plunged 17% after the chemicals company slashed its dividend to 35 cents a share from 70 cents and reported an adjusted loss in the second quarter of 42 cents a share, wider than analysts' estimates that called for a loss of 17 cents.
Southwest Airlines was down 11% after posting second-quarter adjusted earnings of 43 cents a share, below analysts' calls for 51 cents, on revenue of $7.24 billion that also came up short. But the carrier said industry demand "shows signs of improvement off of depressed second quarter 2025 levels, which combined with moderated capacity across the industry and Southwest-specific initiatives, creates a constructive backdrop for the second half of the year."
American Airlines reported adjusted earnings of 95 cents a share in the second quarter, beating estimates of 78 cents. However, the airline said it now expects full-year earnings of between a loss of 20 cents a share and a profit of 80 cents. Wall Street expected 72 cents. American said the "top end of the range is achievable if demand in the domestic market continues to strengthen and only expects to be at the bottom end of the range if there were to be macro weaknesses that are not seen today." Shares fell 9.6%.
Chipotle Mexican Grill, the burrito chain, sank 13% after posting second-quarter profit and revenue that both met analysts' expectations but same-store sales for existing restaurants that declined 4% from a year earlier. For 2025, Chipotle expects comparable sales flat with 2o24.
Las Vegas Sands earned an adjusted 79 cents a share in the second quarter, beating analysts' estimates of 53 cents. Revenue of $3.18 billion topped consensus of $2.84 billion. Shares of the casino and resort operator were up 4.3%.
American Eagle Outfitters rose 4.3% after the retailer announced that Hollywood actress Sydney Sweeney would headline its Fall 2025 promotional campaign.
West Pharmaceutical Services soared 23%. The maker of injectable medicines reported better-than-anticipated second-quarter earnings and raised its full-year guidance.
Earnings reports were expected after the closing bell Thursday from Intel, Newmont, and VeriSign.
Write to Joe Woelfel at [email protected] and Mackenzie Tatananni at [email protected]
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Dow Jones Newswires