Roman GłogulskiApple stocks gained almost 3%, leading the market rally. Bank of America raised its recommendation for Apple from neutral to buy, citing stronger multi-year iPhone update cycles and increased growth in services, allowing the company to generate higher revenues from its existing customer base.
Humana faced difficulties in the fourth quarter as higher medical costs contributed to an 11.8% drop in stocks, which may also impact the forecasts for 2024. Humana stated that current trends are being widely felt in the industry, causing drops in UnitedHealth stocks by nearly 3% and CVS Health by around 5% as well.
Japanese housing developer Sekisui House announced a $4.95 billion deal to acquire MDC Holdings, causing the latter’s stocks to rise by over 18%. Sekisui House will pay $63 per share of MDC, which is nearly 19% higher than Wednesday’s closing price.
U.S.-listed stocks of Taiwanese integrated circuit manufacturer Taiwan Semiconductor Manufacturing rose by over 7% after announcing higher profits and revenues in the fourth quarter. Taiwan Semi also expects 2024 to be a year of “healthy growth.” Stocks of some major clients of the company, such as Nvidia, Apple, Qualcomm, and Advanced Micro Devices, also gained value by at least 2%.
Hertz gained 7.5% after receiving an upgraded rating from investment bank Morgan Stanley. The bank stated that the car rental company’s decision to sell about 20,000 electric vehicles will contribute to the growth in its stock value.
Shares of low-cost airline Spirit Airlines dropped another 30% due to the proposed merger with JetBlue being blocked. Spirit, which saw a 60% decline in value in the first three trading days of the week, was also downgraded by Citi from neutral to sell.
Distributor Fastenal saw a 6% rise in stocks, in line with Wall Street expectations, thanks to strong fourth-quarter results. Fastenal reported earnings of 46 cents per share on revenues of $1.76 billion, while analysts surveyed by StreetAccount predicted earnings of 45 cents per share on revenues of $1.75 billion.
Regional bank First Horizon rose by almost 4% after surpassing expectations in the fourth quarter. The adjusted earnings per share were 32 cents, while analysts surveyed by StreetAccount had expected 27 cents. The bank’s interest income also exceeded expectations.
Discover Financial Services stocks fell by nearly 11% after announcing fourth-quarter results that did not meet market expectations. Earnings per share came in at $1.54, while an estimate of $2.50 was anticipated.
German footwear company Birkenstock saw a 9.3% drop in stocks after warning that its full-year results will be under pressure due to global expansion. This was the company’s first financial report as a publicly traded entity.
Cleveland-based KeyCorp lost 5.3% after announcing fourth-quarter results that showed a year-on-year decline in profits. Interest income also decreased compared to the fourth quarter of 2022.
Microchip manufacturer Microchip Technology gained almost 3% after receiving an upgrade from Wolfe Research from “perform” to “outperform.” The company stated that many actions were taken to mitigate stock valuation risk prior to announcing third-quarter results.
Shares of fuel cell technology company Plug Power dropped by 15% despite being maintained as “underweight” by Morgan Stanley. The bank stated that Plug Power will have to use a large portion of its $1 billion stock offering, announced after the market closed on Thursday.
Shares of Grab Holdings, a Singaporean ride-hailing and food delivery app, rose by 3% after JPMorgan upgraded its rating to “overweight.” The bank cited attractive valuation and improved delivery margins as factors contributing to the upgrade.
Kinder Morgan lost 2% of its stock value after announcing fourth-quarter revenues of $4.04 billion, falling short of analysts’ expectations.
Frequently Asked Questions:
1. What were Apple’s stock performance in the market?
Apple stocks gained almost 3%.
2. Why did Bank of America increase its recommendation for Apple?
Bank of America raised its recommendation for Apple from neutral to buy due to stronger iPhone growth cycles and increased services growth.
3. What difficulties did Humana face, and how will it impact the 2024 forecasts?
Higher medical costs contributed to an 11.8% drop in Humana stocks, which may also affect the forecasts for 2024.
4. What agreement did Sekisui House announce?
Sekisui House announced a $4.95 billion deal to acquire MDC Holdings.
5. What were Taiwan Semiconductor Manufacturing’s fourth-quarter results?
Taiwan Semiconductor Manufacturing’s stocks rose by over 7% after announcing higher profits and revenues in the fourth quarter.
6. Why did Hertz gain value?
Hertz gained 7.5% after receiving an upgraded rating from Morgan Stanley. The bank stated that the car rental company’s decision to sell electric vehicles will contribute to stock value growth.
7. Why did Spirit Airlines stocks drop?
Spirit Airlines stocks dropped by 30% due to the blocked proposed merger with JetBlue.
8. What were Fastenal’s fourth-quarter results?
Fastenal saw a 6% rise in stocks due to strong fourth-quarter results.
9. What were First Horizon’s fourth-quarter results?
First Horizon rose by almost 4% after surpassing expectations in the fourth quarter.
10. Why did Discover Financial Services stocks fall?
Discover Financial Services stocks fell by nearly 11% after announcing fourth-quarter results that did not meet market expectations.
11. Why did Birkenstock stocks drop?
Birkenstock saw a 9.3% drop in stocks due to warning about the company’s results being under pressure due to global expansion.
12. Why did KeyCorp lose value?
KeyCorp lost 5.3% after announcing fourth-quarter results that showed a year-on-year decline in profits.
13. Why did Microchip Technology stocks gain value?
Microchip Technology gained almost 3% after receiving an upgrade from Wolfe Research.
14. Why did Plug Power stocks drop?
Plug Power stocks dropped by 15% despite being maintained as “underweight” by Morgan Stanley.
15. Why did Grab Holdings stocks rise?
Grab Holdings stocks rose by 3% after JPMorgan upgraded its rating to “overweight.”
16. What were Kinder Morgan’s fourth-quarter revenues?
Kinder Morgan announced revenues of $4.04 billion in the fourth quarter, falling short of analysts’ expectations.
