Midday Trading Highlights: Key Players in the Market
Several notable companies are making waves in midday trading, showcasing significant movements in their stock prices.
Hershey and Mondelez International
Hershey’s stocks surged approximately 10.9%, spurred by Bloomberg News revealing that Mondelez International, known for Cadbury and Oreo products, is once again pursuing a takeover of the chocolate giant. This news positions Hershey for its most impressive trading day since June 2016, when Mondelez previously made headlines with a $23 billion bid. In contrast, shares of Mondelez saw a decline of about 2.3%.
Impact of Chinese Economic Policy
U.S.-listed shares of Chinese companies such as PDD Holdings and JD.com skyrocketed by over 10% as reports emerged from China’s Politburo regarding plans to ease monetary policy aimed at stimulating domestic growth in 2025. Alibaba and Tencent followed suit, rising by 7.5% and 6% respectively, while car manufacturer Nio experienced a notable surge of over 12.3%. Other Chinese stocks, including Trip.com and Baidu, also benefited from this news.
Macy’s Stock Reaction
Macy’s shares ticked up by roughly 1.8% following a call from activist investor Barington Capital, urging the department store to cut down on expenditures and reassess its strategies for its Bloomingdale’s and Bluemercury brands.
Workday and Apollo Global Management
Workday’s stock rose by 5% after S&P Dow Jones Indices announced that it will join the S&P 500 later this month. Apollo Global Management, which is also set to become a part of the S&P 500, reached a new 52-week high on Monday, although it experienced a slight dip of about 3%.
Warner Bros. Discovery and Comcast Developments
Warner Bros. Discovery saw its shares fall approximately 0.9% after signing a significant multiyear cable distribution agreement with Comcast, allowing for the European launch of the Max streaming service and settling a legal dispute regarding "Harry Potter" TV rights. Comcast faced a more significant downturn, with shares declining by 9.5%.
Stellantis Leadership Changes
Shares of Stellantis rose by 0.6% following the news that notable executive Tim Kuniskis was returning to lead the automaker’s Ram Trucks brand. His comeback comes shortly after the unexpected resignation of CEO Carlos Tavares in light of challenges in the North American market.
Nvidia Faces Challenges
Nvidia’s stock slipped nearly 2.6% after China’s State Administration for Market Regulation initiated an investigation into potential violations of antimonopoly laws, particularly concerning Nvidia’s acquisition of Mellanox.
Advanced Micro Devices Decline
Advanced Micro Devices (AMD) saw a decline of about 5.6% following a downgrade to neutral from buy by Bank of America. This decision stemmed from rising competitive risks in artificial intelligence, given Nvidia’s dominance and the changing landscape towards custom chips.
Dow Chemical’s Asset Sale
Shares of Dow climbed 1.8% after announcing the sale of a 40% equity stake in its U.S. Gulf Coast infrastructure assets to a fund managed by Macquarie Asset Management. This transaction is expected to finalize in the first half of 2025.
Interpublic Group of Companies and Omnicom Acquisition
Interpublic’s shares rose by 3.5%, while Omnicom’s fell by 10.3%. The companies announced that Omnicom will acquire Interpublic in a stock-for-stock transaction, which is projected to close in the latter half of 2025.
Super Micro Computer’s Nasdaq Extension
Super Micro Computer saw a modest increase of 0.5% after receiving an extension from Nasdaq that allows it additional time to submit its delayed annual report. The company now has until February to meet the exchange’s listing requirements.
SoFi Technologies Downgrade
Conversely, SoFi Technologies shares dipped 2.8% after Bank of America Global Research downgraded the fintech company from neutral to underperform, citing an overvaluation following the stock’s substantial rise over the past three months.
SolarEdge Technologies’ Successful Launch
In a bright spot, SolarEdge Technologies experienced a jump of 11.7% after announcing the shipment of its new "USA Edition" home battery, designed to comply with the domestic content bonus tax credit provisions of the Inflation Reduction Act, which encourages the development of green technology.
These dynamics highlight an engaging midday trading session with significant developments and shifts among key players in the market.
