Check out the companies making headlines in midday trading.
Etsy — Etsy’s stock sank 5% after the e-commerce company said it’s laying off 11% of its workforce, or about 225 employees, as it deals with a difficult macro and competitive environment. The e-commerce marketplace also updated its fourth-quarter guidance.
Pfizer — Pfizer shares tumbled 7% and touched a 10-year low. The drugmaker offered 2024 revenue and profit guidance that fell below Wall Street’s expectations as demand for its Covid-related products softens. The company also upped the target of its cost-cutting plan by $500 million.
Tesla — Shares declined 2.5% after the electric vehicle maker recalled about two million vehicles in the U.S. due to a defect within Autopilot. The recall effects vehicles within Tesla’s Model S, Model X, Model 3 and Model Y lines built since 2012, according to filings posted to the National Highway Traffic Safety Administration.
Vertex Pharmaceuticals — The biotechnology stock skyrocketed nearly 11%. Vertex Pharmaceuticals said a trial of its opioid alternative showed promise in reducing nerve pain.
Southwest Airlines — Southwest shares sank about 6% after the company said it expects higher fuel costs in the fourth quarter. The airline said it now expects economic fuel costs to range between $3 and $3.10 per gallon, versus its previous estimate of between $2.90 and $3 per gallon.
Johnson & Johnson — The health-care name dipped less than 1% after Wells Fargo downgraded the stock to equal weight from overweight. The Wall Street firm said it’s concerned about Johnson & Johnson’s “muted” earnings per share growth.
Roblox — Shares of the video game company gained 1% Wednesday after Wells Fargo initiated coverage of Roblox with an overweight rating. The investment firm said the stock market is undervaluing the growth potential from Roblox’s push into advertising.
U.S. Steel — Shares of the steelmaker rose about 5% after the company received multiple bids for it, sources told CNBC’s David Faber. One bid, from Cleveland-Cliffs, is above $40 a share, which is higher than its original offer of $35 a share made in August. ArcelorMittal is another firm among the five bidders that U.S. Steel has attracted.
Take-Two Interactive — Shares of the video game company climbed 3%. Take-Two Interactive is set to join the Nasdaq-100 index, effective Dec. 18. It will replace Seagen as part of the index’s annual reconstitution.
Cognyte Software — Shares of the security software provider slid nearly 7% after advancing earlier in the day on the back of a third-quarter beat and strong outlook. Cognyte reported adjusted earnings of 34 cents per share on $79.4 million of revenue, exceeding the expected earnings of 1 cent per share on $77.6 million of revenue, according to FactSet.
Coherent — Coherent shares slumped 3%. Morgan Stanley downgraded the laser systems solutions company to equal weight from overweight, citing near-term valuation and upside concerns.
Xponential Fitness — Xponential popped 7% on the back of an upgrade from Stifel to buy from hold. The firm said the stock has good risk/reward levels after an overdone sell-off.
MSCI — MSCI shares gained roughly 1% after Morgan Stanley upgraded the financial company to an overweight rating, citing its defensive attributes and growth prospects.
Hertz — The rental car stock fell about 2% after Oppenheimer downgraded the company to perform from an outperform rating, citing headwinds in 2024 including higher vehicle interest expenses and challenges with its electric vehicle initiative.
ABM Industries — Shares of the facilities management company surged more than 14% after topping Wall Street’s quarterly expectations. ABM Industries also hiked its dividend.
Health Catalyst — Health Catalyst shares jumped 3%. JPMorgan on Wednesday upgraded the managed health-care IT services provider to overweight from neutral, saying the valuation is “not reflective of earnings potential.”
— CNBC’s Hakyung Kim, Alex Harring, Lisa Kailai Han, Yun Li, Jesse Pound, Tanaya Macheel, Pia Singh and Sarah Min contributed reporting.
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