On Friday, various stocks experienced notable movements in response to market developments:
- Nike (NKE): The athletic footwear and apparel giant reported fiscal second-quarter earnings that surpassed expectations but announced a $2 billion cost-cutting plan over the next three years. Anticipating a softening of sales in the second half of fiscal 2024, Nike revealed plans for streamlining the company, leading to a 10% drop in its stock.
- Dick’s Sporting Goods (DKS) and Foot Locker (FL): These athletic-gear retailers saw declines of 3.3% and 4.7%, respectively, likely influenced by Nike’s cost-cutting announcement.
- Karuna Therapeutics: The neuroscience-drug developer’s shares rose by 47% after reaching an acquisition agreement with Bristol Myers Squibb for $330 a share in cash, amounting to about $14 billion.
- Ansys: The simulation software company experienced a 9.4% jump following reports that it is exploring options, including a potential sale, after receiving takeover interest.
- Rocket Lab (RKLB): The commercial space company’s stock rose by 28% after securing a $515 million contract from a U.S. government customer for the design, manufacture, delivery, and operation of 18 space vehicles.
- Occidental Petroleum (OXY): Berkshire Hathaway increased its ownership in Occidental Petroleum by purchasing 5.2 million shares, bringing its total stake to 27.7%. Occidental shares rose by 1.4%.
- NetEase: U.S.-listed shares of NetEase declined by 17% after China proposed new restrictions on online gaming. Tencent also saw an 11% drop.
- Lumentum Holdings: The optical and photonic products provider’s stock rose by 3.1% after receiving an upgrade to Buy from Hold at Craig-Hallum.
- AAR: The provider of aviation services posted fiscal second-quarter earnings that matched estimates but experienced a 6.2% decline in stock after sales of $545.4 million fell short of expectations.
- Tesla (TSLA): Tesla’s stock rose by 0.3% to $255.35 following analysts at RBC Capital reducing their fourth-quarter delivery estimates for the electric vehicle maker and Wedbush raising its price target on Tesla to $350 from $310.
These stock movements reflect a variety of factors, including corporate earnings, strategic announcements, and broader market trends. Investors often analyze such developments to make informed decisions about their portfolios.