Midday Trading Highlights: Key Companies in the Spotlight
As midday trading unfolds, several companies are making waves in the market. Here’s a look at the major players and their recent performance:
Rivian Automotive Surges
Rivian Automotive saw its shares soar by 24.5%, driven by the electric vehicle manufacturer meeting its previously announced production and delivery guidance for 2024. This positive news comes on the heels of an earlier reduction in the company’s full-year production targets made in October.
U.S. Steel Faces Setback
Shares in U.S. Steel dipped by 6.5% following President Joe Biden’s decision to block Nippon Steel’s $14.9 billion takeover of the company. The President cited concerns that the acquisition could jeopardize U.S. supply chains.
Block Sees Positive Momentum
Financial technology firm Block experienced a 6.2% increase in its stock price after being upgraded to "outperform" from "market perform" by Raymond James. Analyst John Davis expressed optimism about Block’s attractive valuation and reaffirmed confidence in the company’s growth strategy leading into 2025.
Chewy Gets a Boost
Pet retailer Chewy enjoyed a 6.2% rise in shares after Wolfe Research upgraded the stock to "outperform" from "peer perform." The firm highlighted prospects for earnings growth, an improved economic outlook, and product-driven catalysts as key drivers of this recommendation.
Alcohol Industry Declines
The alcohol beverage sector took a hit following a recent advisory from U.S. Surgeon General Dr. Vivek Murthy, which warned about the connection between alcohol consumption and an increased risk of at least seven types of cancer. Consequently, shares of major companies faced declines: Diageo fell nearly 4%, while Anheuser-Busch InBev and Molson Coors dropped 2.2% and 3.4%, respectively. Constellation Brands also saw a slight decrease of 0.3%.
Constellation Energy Rises
In contrast, Constellation Energy’s shares jumped by 4%, building on gains from the previous session. This surge followed the announcement that the company had signed contracts exceeding $1 billion to provide nuclear power to the U.S. government over the next ten years.
Carvana Drops Amid Controversy
On the downside, Carvana experienced a significant 11.2% decline after Hindenburg Research accused the online used-car retailer of having an unstable business model marked by questionable loans and accounting practices. Though Carvana’s stock had surged by an astonishing 284% in 2024, it has since descended over 5% this year.
Auto Industry Shines
Both Ford and General Motors reported their best annual U.S. sales since 2019, leading to gains in their shares. Ford’s stock increased by 2.4%, while General Motors rose nearly 1%.
Vistra’s Strong Performance
Vistra shares soared by 8.5%, extending the strong performance seen in the previous trading session. The stock had already risen over 8%, making it one of the top performers on the S&P 500 at the beginning of the new year, following a remarkable 258% increase in 2024, which positioned it as the second-largest gainer in the market.
JetBlue Airways Recovers Slightly
JetBlue Airways saw its shares rebound, rising by 0.4% after earlier losses. This comeback followed the Department of Transportation fining the airline $2 million for consistently delayed flights on four specific routes from June 2022 to November 2023.
Stay tuned as the trading day continues to unfold, and we watch these dynamic companies navigate the ever-changing market landscape.
