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Walmart, Taiwan Semiconductor, Netflix, Carnival and more

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Bing Guan | Bloomberg | Getty Images

Check out the companies making the biggest moves midday.

Walmart — Shares of retailer Walmart jumped more than 7% after reporting quarterly earnings that beat Wall Street’s expectations and raising its forward guidance. The company reported adjusted earnings per share of $1.50 on $152.81 billion in revenue, where analysts expected adjusted earnings per share of $1.32 and $147.75 billion in revenue, per Refinitiv.

Retail stocks — Retail stocks rose following Walmart and Home Depot‘s stronger-than-expected financial reports for the third quarter. Home Depot rose 1%, while Target shares rallied more than 3%. Kohl’s and Bed Bath & Beyond added roughly 3%. Macy’s and Nordstrom advanced about 5% and 3%, respectively.

Taiwan Semiconductor — Shares of the Taiwanese chipmaker soared more than 12% after Warren Buffett’s Berkshire Hathaway built a $4 billion new stake in the company. Berkshire added more than 60 million shares of the Taiwanese chipmaker’s American depositary receipts, by the end of the third quarter, making Taiwan Semi the conglomerate’s 10th biggest holding at the end of September.

Paramount Global — Shares of the media company jumped more than 9% after a filing revealed that Berkshire Hathaway increased its holding to $1.7 billion at the end of the third quarter. Paramount is still down more than 30% this year as it suffered from cord cutting and a drop in advertising revenue.

Louisiana-Pacific — The lumber maker saw its stock jump more than 10% after Omaha-based Berkshire took new positions in the company last quarter. The conglomerate’s stake was worth $297 million at the end of September.

Bath & Body Works — Bath and Body Works rose 4% after an SEC filing revealed that Dan Loeb’s Third Point bought $265 million in the retailer’s stock in the third quarter.

Netflix — The streaming giant added 3.8% after Bank of America double-upgraded the stock to a buy from underperform. He said the new ad tier and crackdown on password sharing could help the stock’s value increase 23.6%.

Fulcrum Therapeutics — Shares of the biotechnology company gained 8.6% after Goldman Sachs initiated coverage of the stock as a buy and said it could see an upside of 61.5% if its main experimental drugs kept performing well.

Vodafone — Vodafone’s stock dropped 6.8% after the company cut its earnings guidance and cash flow forecast. The mobile operator cited a challenging economic environment.

Getty Images — Getty Images’ stock plummeted 12% after revenue for the recent quarter missed Wall Street’s expectations.

Albemarle — Shares of the lithium miner dropped 6%. Rumors that an unnamed Chinese cathode manufacturer was cutting its production targets was putting pressure on U.S. lithium stocks, according to FactSet.

Signature Bank — Shares of the crypto bank jumped more than 10% after Signature reported minimal exposure to FTX and any potential destruction that could come from its collapse. Signature said it has only a deposit relationship with the exchange — it does not lend crypto or invest in it on behalf of clients — representing less than 0.1% of its overall deposits.

Mobileye Global — The autonomous vehicle systems software company rallied 4% after Baird initiated coverage of the stock with an outperform rating. Analyst Luke Junk called Mobileye a market leader, writing, “Net, we recommend purchase/would lean into any volatility, for this premier franchise/longer-term optionality.”

Sunnova Energy — Shares of solar company rose 7.5% after Deutsche Bank initiated coverage of Sunnova Energy, First Solar and Enphase Energy with buy ratings. First Solar was up 3.2%, and Enphase Energy rose 2%.

Capital One Financial — The regional bank’s stock sank 5% after it was downgraded by Bank of America to neutral from buy. Analyst Mihir Bhatia also cut his price target to $113 per share from $124.

Carnival — Shares of the cruise operator rose 6% after another report hinted inflation could be slowing. Royal Caribbean Cruises and Norwegian Cruise Line were also higher, up 4.9% and 2.5% respectively.

Chinese stocks — Chinese companies listed on the U.S. stock market rose following President Joe Biden’s meeting with China President Xi Jinping and despite disappointing retail sales data. Tencent Music Entertainment, which also posted beats on the top and bottom lines, soared about 30%. Alibaba rose roughly 12%. Pinduoduo and Baidu both rallied about 10%, and JD.com rose nearly 8%.

— CNBC’s Yun Li, Carmen Reinicke, Alex Harring, Samantha Subin and Tanaya Macheel contributed reporting.

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Hasbro, Salesforce, Carnival, Lockheed Martin & more

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Hasbro Inc. toys from based on “Marvel’s The Avengers” movie sit on the shelf at a Target Corp. store in Union, New Jersey, U.S., on Wednesday, Aug. 22, 2012.

Bloomberg | Bloomberg | Getty Images

Check out the companies making headlines in midday trading Tuesday.

Hasbro — Shares of the toy company dipped 2.3% after the company reported third-quarter earnings that missed expectations. CEO Chris Cocks blamed “increasing price sensitivity” among consumers and inventory gluts.

Salesforce — Salesforce shares gained 5.2% after Starboard Value revealed to CNBC that it has taken a “significant” stake in the software giant. Starboard founder Jeff Smith did not reveal the exact amount but said he sees a big opportunity after the shares fell more than 40% this year.

Carnival Corporation — Shares of the cruise company jumped more than 12% after one of Carnival’s subsidiaries began an offering of $1.25 billion of senior priority notes due 2028. The company plans to use the net proceeds of the offering to make principal payments on debt and for other general corporate expenses, according to a regulatory filing. Norwegian Cruise Line Holdings and Royal Caribbean also rose 8.8% and 7.6%, respectively, on the news.

Goldman Sachs — Goldman Sachs rallied 3% after beating third-quarter analyst expectations for profit and revenue on better-than-expected trading results. The company also announced a corporate reorganization that combines the firm’s four main divisions into three.

Target — Shares of the retailer jumped 5% after Jefferies upgraded Target to a buy from hold, saying they can rally about 20% from current levels and benefit from both an easing of supply chain issues and improved inventory positioning.

Lockheed Martin — Shares of the aerospace company jumped 8.5% after Lockheed reported third-quarter earnings of $6.87 per share excluding items, which was higher than a Refinitiv estimate of $6.66 per share.

Amazon — Amazon added 2.7% after Citi named it a top pick for both a hard and soft economic landing, saying it would perform well under either scenario.

XPO Logistics — XPO Logistics fell 1.7% after the freight transportation company released disappointing preliminary quarterly results ahead of its earnings release. The company said Monday that it expects revenue to come in lower than analysts expect, but that earnings before interest, taxes, depreciation and amortization will be higher. The company reports Oct. 31.

Nordstrom — The retailer’s shares added more than 3% after the company announced its chief financial officer, Anne Bramman, will step down in December. Nordstrom has begun its search for her successor and said accounting chief Michael Maher will serve that role in the interim.

Enviva — The wood pellet maker rose 4.7% after Raymond James said its value as a more environmentally and socially responsible energy provider is misunderstood.

 — CNBC’s Carmen Reinicke, Alex Harring and Michelle Fox contributed reporting

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Carnival shares fall on ballooning costs, dragging cruise stocks lower

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The brand new Carnival Cruise Line ship Mardi Gras, docked at Port Canaveral, Florida, on July 30, 2021.

Joe Burbank | Orlando Sentinel | Tribune News Service | Getty Images

Shares of Carnival fell below their pandemic lows Friday after the cruising company posted third-quarter earnings that revealed higher costs associated with inflation, supply chain disruptions and the maintenance of health and safety protocols.

Shares of Carnival were down around 20% in late morning trading. The stock fell to a 52-week low of $7.01 earlier in the session, below the stock’s pandemic plunge lows in April 2020, when shares traded around $7.80 intraday.

If Friday’s losses hold, it would knock almost $3 billion off Carnival’s market value. Shares of Norwegian and Royal Caribbean also fell Friday, down 14% and 11%, respectively.

Carnival reported adjusted net losses of $770 million, or 65 cents per share, on $4.3 billion in revenue. Operating costs and expenses totaled $3.4 billion during the quarter, compared with costs of $1.6 billion in the third quarter 2021.

Carnival said bookings improved 15 percentage points from the prior quarter to 84%. That compares with 54% occupancy during the same period in 2021. Despite governments relaxation of pandemic-era protocols in both the U.S. and, more recently, Canada, the company is projecting fourth-quarter bookings below 2019 levels — at lower prices.

Cruise companies across the board are struggling with massive debts taken on during Covid lockdowns, made more expensive by rising interest rates. Carnival on Friday morning reported $1 billion in principal payments so far for 2022 and a total of $9 billion due by 2025.

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Business

Uber, DoorDash, Coinbase and more

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Uber Eats delivery

Jonathan Raa | NurPhoto via Getty Images

Check out the companies making headlines in midday trading.

Uber, DoorDash – Shares of Uber slumped 4.6% and DoorDash fell 9% on news that Amazon agreed to take a stake in Grubhub in a deal that will give Prime subscribers a one-year membership to the food delivery service.

Coinbase – Coinbase slipped 3.1% after Atlantic Equities downgraded the crypto exchange to neutral and slashed its price target, citing increased volatility in the industry.

Netflix – Netflix dropped 2.1% after Barclays slashed its price target for the streaming service to $170 from $275, anticipating a subscriber loss in the second quarter amid increased competition.

Rocket Companies – Shares of the consumer fintech company jumped 5.5% after Wells Fargo upgraded it to an overweight rating and said Rocket’s set up for a big comeback after tumbling more than 42% this year. Despite a “tough mortgage backdrop,” Rocket will “continue to take market share from its peers,” Wells Fargo said.

Rivian — The electric vehicle maker surged more than 10% after saying it’s on track to deliver 25,000 vehicles this year. In its most recent quarter, Rivian said it produced 4,401 vehicles, and delivered 4,467, in line with the company’s expectations.

Energy stocks – Energy stocks slid Wednesday as oil continued its slump from Tuesday, slipping to about $95 a barrel. The S&P 500 Energy sector fell 4% with shares of Marathon Oil, Conocophillips and Halliburton falling 5.1%, 3.9% and 4.1%, respectively. Occidental Petroleum weakened 2.5%, while Exxon Mobil fell 3.8%.

Cruise stocks – Norwegian Cruise Line Holdings slumped 9.6%, Royal Caribbean fell 5.9%, and Carnival eased 6.7% on concern about second-half cruise ship demand. Norwegian said it would no longer require guests to test for Covid-19 before joining a cruise, unless required by local regulations.

— CNBC’s Tanaya Macheel, Samantha Subin and Sarah Min contributed reporting.

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Business

Bed Bath & Beyond, Carnival, Upstart and more

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A security guard stands next to a Bed Bath & Beyond sign at the entrance to a New York City store location.

Scott Mlyn | CNBC

Check out the companies making headlines in midday trading.

Bed Bath & Beyond — Shares of the retailer plummeted about 21% after the company missed revenue estimates and posted a wider-than-expected loss in the recent quarter. Bed Bath & Beyond also announced it is replacing CEO Mark Tritton.

Carnival — Shares of the cruise line operator fell more than 14% after Morgan Stanley cut its price target on the stock roughly in half and said it could potentially go to zero in the face of another demand shock, given Carnival’s debt levels. The call dragged other cruise stocks lower. Royal Caribbean and Norwegian Cruise Line Holdings each dropped more than 10%.

Upstart — Shares of the AI lending platform dropped roughly 10% after Morgan Stanley downgraded the stock to underweight from equal weight. The Wall Street firm said rising interest rates and a troublesome macroenvironment is hurting Upstart’s growth trajectory.

Bath & Body Works — The retailer’s stock fell nearly 8% after JPMorgan downgraded shares to neutral from overweight. The firm lowered its second quarter and full-year earnings estimates for Bath & Body Works after reducing second quarter average unit retail estimates by 4% year over year.

Teradyne — Shares of the semiconductor testing company slid 6% following a downgrade to neutral from buy from Bank of America. The firm said Teradyne’s exposure to Apple could ding the stock in the near term, given uncertainty around iPhone demand.

Tesla — Shares declined about 4% following a Wall Street Journal report that said Tesla is closing its San Mateo, California office and laying off 200 workers. CNBC confirmed the report.

General Mills — The stock jumped 5.7% after General Mills reported an earnings beat on the top and bottom lines. Still, the cereal company’s full-year profit estimates were weaker than expected, because of a consumer shift to cheaper brands.

O’Reilly Automotive — The auto parts company traded up more than 1% following an upgrade to buy from neutral from D.A. Davidson. The firm said O’Reilly is their “preferred way” to play the auto parts theme compared to AutoZone and Advance Auto Parts. Auto parts companies, which typically sell non-discretionary products, are expected to weather downturns better than other retailers.

McDonald’s — Shares climbed 1.5% following an upgrade to overweight by Atlantic Equities. The firm said hamburger chain will hold out as consumer spending slows.

Goldman Sachs — Shares rose 1.3% after Bank of America upgraded Goldman Sachs to a buy from a neutral rating and said the bank will thrive even in an economic slowdown.

— CNBC’s Yun Li, Tanaya Macheel and Samantha Subin contributed reporting

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Moderna, Royal Caribbean, Cerner and others

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Check out the companies making headlines before the bell:

Moderna (MRNA) – Moderna shares jumped 7.2% in the premarket after the drugmaker said a booster dose of its Covid-19 vaccine increased protection against the omicron variant 37-fold. Amid the spread of omicron, other vaccine makers are also seeing gains with Pfizer (PFE) up 1.4%, BioNTech (BNTX) adding 3.1% and Novavax (NVAX) surging 10.3%.

Cruise line operators – The surge in omicron cases is weighing on cruise stocks, with more pressure after a Royal Caribbean (RCL) ship docked in Miami with 48 cases of Covid. Royal Caribbean dropped 2.9% in premarket trading, with Carnival (CCL) down 2.9% and Norwegian Cruise Line (NCLH) falling 3.6%.

Airline stocks – Omicron concerns are also weighing on the airline stocks, with United Airlines (UAL) falling 2.9%, American Airlines (AAL) sliding 2.8%, Delta Air Lines (DAL) falling 2.8%, Southwest (LUV) down 2.3% and JetBlue (JBLU) losing 2.2%.

Biogen (BIIB) – Biogen rallied 3.6% in the premarket after announcing it would cut the price of its Alzheimer’s drug Adulhelm by 50% in order to improve access to the treatment.

Cerner (CERN) – The medical records technology provider will announce a deal today to be acquired by Oracle (ORCL) in an all-cash transaction “in the mid-$90s” per share, according to CNBC’s David Faber. Cerner shares jumped 13% Friday after the Wall Street Journal reported the two sides were close to an agreement. Cerner was up another 1.7% in premarket trading.

Canopy Growth (CGC) – The cannabis producer slid 3.4% in premarket action after Piper Sandler downgraded the stock to “underweight” from “neutral”, citing sales trends that are under pressure across Canopy’s businesses.

Sunrun (RUN) – The solar company’s stock tumbled 9.4% in the premarket following a KeyBanc downgrade to “sector weight” from “overweight.” That follows proposals in California that would reduce “net metering” benefits for solar power customers and reduce incentives to buy such systems.

AT&T (T) – Barclays upgraded AT&T to “overweight” from “neutral,” based on a better broadband outlook for telecom companies than for cable providers. AT&T was up 1.6% in the premarket.

Verso (VRS) – The Ohio-based maker of specialty, graphic and packaging paper will be acquired by Swedish paper producer BillerudKorsnäs in a deal worth $27 per share in cash. Verso surged 32.2% in premarket trading.

Axon Enterprise (AXON) – The maker of stun guns and body cameras saw its stock jump 7.3% in the premarket, following a number of stock purchases by company insiders.

Novo Nordisk (NVO) – The Denmark-based drugmaker saw its shares slide 4.2% in premarket trading after saying supply issues in the U.S. market would leave it unable to meet demand for its weight-loss drug Wegovy.

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What are the best cruises in the world? Viking, Disney are big winners

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U.S. News & World Report on Tuesday published its ranking of the “best” cruise lines of 2022.

The publication evaluated 17 cruise lines through a combination of expert evaluations (30%), traveler reviews (50%) and health ratings published by the U.S. Centers for Disease Control and Prevention’s Vessel Sanitation Program (20%).

Scores were then analyzed by category to determine winners, ranked highest to lowest, in six areas.

Best cruise lines for the money

The 2022 rankings for best valued cruises are:  

  1. Celebrity Cruises — “Gold Award”
  2. Holland America Line — “Silver Award”
  3. Royal Caribbean International — “Silver Award”
  4. Norwegian Cruise Line
  5. Carnival Cruise Line

Here, average daily rates accounted for 60% of scores, while expert, traveler and health ratings accounted for the other 40%. Cruise lines with average daily rates of $300 or more did not qualify for this category.

The Celebrity Edge cruise ship, the first revenue-earning cruise to depart from the U.S. after a pandemic-induced hiatus, docks during a stop in Costa Maya, Mexico on Tuesday, June 29, 2021.

Eva Marie Uzcategui | Bloomberg | Bloomberg | Getty Images

Celebrity Cruises was named the best cruise for the money. It’s part of the Royal Caribbean Group, which also operates Royal Caribbean International, which took home a “Silver Award” in this category.

Wi-Fi, tips and drinks — like cocktails, wine and specialty coffees — are included in most Celebrity cruise bookings, however the cheapest rates can be purchased without them. Right now, a four-day cruise from Miami to the Bahamas is around $440 per person, including taxes, for an inside state room.

Also on the list: Princess Cruises (No. 6), Costa Cruises (No. 7) and MSC Cruises (No. 8).

Best cruise lines for luxury

Smaller cruise lines — with ships that fit hundreds rather than thousands of guests — dominated U.S. News’ luxury rankings list.

  1. Viking Ocean Cruises — “Gold Award”
  2. Seabourn Cruise Line — “Silver Award”
  3. Regent Seven Seas Cruises — “Silver Award”
  4. Azamara
  5. Crystal Cruises

The Viking Sea cruise ship arrives at Bodrum Cruise Port in Mugla, Turkey on March 13, 2021.

Ali Balli | Anadolu Agency | Anadolu Agency | Getty Images

Viking, a cruise line based in Basel, Switzerland, is no stranger to accolades. It topped U.S. News’ luxury list last year too — despite Chairman Torstein Hagen indicating he isn’t a fan of the word.

“I have outlawed the use of the word ‘luxury’ … I think we are elegant, we are … understated and hopefully timeless,” he said at a naming celebration for seven new river boats in March 2019, according to cruising website QuirkyCruises.com.

Also on the list: Silversea Cruises (No. 6) and Oceania Cruises (No. 7).

Best cruise lines for couples

Awards for the best cruises for those traveling in twos are:  

  1. Viking Ocean Cruises — “Gold Award”
  2. Seabourn Cruise Line — “Silver Award”
  3. Azamara — “Silver Award”
  4. Crystal Cruises
  5. Regent Seven Seas Cruises

Viking dominates this category due to its “adult-focused environment and luxurious and romantic amenities, such as fireplaces in each ship’s common area and private verandas in every stateroom,” according to a U.S. News & World Report’s press release.  

To qualify for this category, at least 62% of a cruise line’s online traveler reviews must be made by couples.

Most luxury cruise lines allow kids, though they often don’t cater to them the way the larger lines do. Viking, however, doesn’t allow children at all. 

The company previously welcomed kids aged 12 and older to cruise, but as of 2018, all guests must be 18 or older to board.

Also on the list: Celebrity Cruises (No. 6), Oceania Cruises (No. 7), Silversea Cruises (No. 8), Cunard Line (No. 9) and Holland America Line (No. 10).

Best cruise lines for families

The top-ranking cruises for families for 2022 are:

  1. Disney Cruise Line — “Gold Award”
  2. Royal Caribbean International — “Silver Award”
  3. Carnival Cruise Line — “Silver Award”
  4. Norwegian Cruise Line
  5. MSC Cruises

Disney dominates the family cruise category, as it has every year since U.S. News started ranking cruises in 2013.  

Disney cruises have translucent water slides, pirate-themed deck parties and live performances of classic Disney movies, but also adult-only pools, spas and bars for parents.

Marjie Lambert | Miami Herald | Tribune News Service | Getty Images

The company has five ships: Magic, Wonder, Dream, Fantasy and its latest, Disney Wish, which is scheduled to launch in summer 2022. The ship is also set to introduce Disney’s first “attraction at sea” — 760 feet of water slide tubes with Mickey Mouse-themed music, lighting and special effects.

Also on the list: Costa Cruises (No. 6).

Best cruise lines in the Caribbean

  1. Disney Cruise Line — “Gold Award”
  2. Celebrity Cruises — “Silver Award”
  3. Seabourn Cruise Line — “Silver Award”
  4. Royal Caribbean International
  5. Crystal Cruises

It’s a clean sweep for Disney in this category too. Disney has been named the top cruise line in the Caribbean for the past eight years, according to U.S. News & World Report.

The Disney Magic cruise ship sails past Manhattan with the Empire State Building in the background.

Gary Hershorn | Corbis News | Getty Images

Living up to its name, the Miami-based Celebrity Cruises partners with well-known names in the arts and entertainment industry. It’s newest ship, Celebrity Beyond, has Gwyneth Paltrow as its “wellbeing advisor” and a restaurant created by Michelin-starred chef Daniel Boulud, according to its website.  

Also on this list: Regent Seven Seas Cruises (No. 6), Holland America Line (No. 7), Carnival Cruise Line (No. 8), Norwegian Cruise Line (No. 9), Oceania Cruises (No. 10), Princess Cruises (No. 11) and MSC Cruises (No. 12).

Best cruise lines in the Mediterranean

  1. Viking Ocean Cruises — “Gold Award”
  2. Seabourn Cruise Line — “Silver Award”
  3. Azamara — “Silver Award”
  4. Regent Seven Seas Cruises
  5. Celebrity Cruises

With another win, Viking tops three of U.S. News’ six categories, this time for its presence in the Mediterranean. In every instance, it is followed by Seattle-based Seabourn Cruise Line, Carnival Corporation’s ultra-luxury brand.

The spa in the luxury Seabourn Sojourn cruise ship.

Peter Macdiarmid | Getty Images News | Getty Images

Seabourn has five ships, which hold between 450-600 passengers and cruise to more than 400 destinations. As part of a multi-year agreement, the cruise line has contributed more than $1.5 million to support UNESCO, which grants its guests “unique access” to more than 170 World Heritage Sites, according to its website.   

Also on the list: Oceania Cruises (No. 6), Crystal Cruises (No. 7), Costa Cruises (No. 8), MSC Cruises (No. 9), Silversea Cruises (No. 10), Holland America Line (No. 11), Norwegian Cruise Line (No. 12), Princess Cruises (No. 12), Royal Caribbean International (No. 13) and Cunard Line (No. 14).

Cruising on the comeback?  

Though mass Covid-19 outbreaks early in the pandemic exposed health concerns surrounding cruising, a new survey indicates travelers may not abandon ship travel after all.  

Before the pandemic, 2% of prior cruisers said they wouldn’t cruise again, while as of August 2021, 4% said the same, according to an ongoing survey conducted by U.S. News & Report.

The pandemic hasn’t scared off non-cruisers either. Pre-pandemic, 62% of people who had never cruised indicated they wanted to try it. Now, 61% of people say the same.

Sentiments may be softening with time too. Before the pandemic, about 10% of people that had never cruised said they “never” would. According to the survey, this number rose to 17% in June 2021, but fell to 14% by August.

Click here to read the full report from U.S. News & World Report.

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Business

Cramer’s lightning round: Doximity is a winner

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Carnival Corp.: “Carnival is good, but today is [Norwegian Cruise Line CEO] Frank Del Rio’s birthday — happy birthday. Norwegian Cruise [is] a better stock, and what a great guy.”

Duolingo: “Duolingo is from Pittsburgh, PA. It is such a brilliant company.”

Helbiz Inc.: “Electric scooters is a bad business, all right? I’m putting it to you. It’s a bad business, all right? We’re going to stay away.”

Blade Air Mobility: “I am a Blade believer. I’ve met [CEO Rob Wiesenthal] … I think he’s got brains. He’s moving all over the place. It’s a very inexpensive stock. I want you to hold onto that bad boy.”

Doximity: “It’s been a winner, and I continue to think it’s going to be a winner.”

Actinium Pharmaceuticals: “I don’t these fellas. I don’t know this company.”

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Business

Carnival, Nike, Match and more

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The Carnival Cruise Ship ‘Carnival Vista’ heads out to sea in the Miami harbor entrance known as Government Cut in Miami, Florida June 2, 2018.

RHONA WISE | AFP | Getty Images

Check out the companies making headlines in midday trading.

Carnival — Carnival shares rose 4% after the cruise line said voyages for the third quarter were cash flow positive and expects this to continue. Shares of Norwegian Cruise Line gained 3.2% and Royal Caribbean added 3%.

Match Group — Shares of Match Group rose 3.6% after the online dating platform announced on Thursday that it will sell shares of its common stock in a registered direct offering. The price per share and number of shares of common stock issued will be calculated by a volume-weighted average price during a five-day averaging period starting Friday, the company said.

Merck — Shares of the pharmaceutical giant rose 1.2% on Friday after Merck and AstraZeneca announced that treatment using the drug Lynparza showed positive results in a phase-three trial. The trial results suggest that the treatment slows the progression of prostate cancer and show a trend toward increased survival, the companies said.

Nike — The apparel stock fell more than 6% after Nike cut its full-year guidance for sales growth. The company said supply chain issues in Vietnam were slowing sales. Nike now projects mid-single-digit revenue growth for its 2022 fiscal year, down from prior guidance of low-double-digit growth.

Costco — Shares of the retailer jumped more than 2% following Costco’s fourth-quarter results. The company beat top- and bottom-line estimates during the quarter, earning $3.90 per share excluding items on $62.68 billion in revenue. Analysts surveyed by Refinitiv were expecting $3.57 per share on $61.3 billion in revenue.

Salesforce — Salesforce extended its Thursday gains, rising 2.2% after Piper Sandler upgraded the stock to overweight from neutral, saying it’s confident the company could see “a multi-year period of multiple and profit expansion.” The stock jumped on Thursday after the software company raised its full-year 2022 revenue guidance.

Coinbase — Shares of the cryptocurrency exchange slid about 1.6% even after Needham reiterated the stock as a buy. Cryptocurrencies plunged Friday morning on news that China is issuing yet another crypto crackdown. Coinbase derives 90% of its revenue from retail transactions, which is highly correlated with crypto asset prices, according to Needham, so its stock price tends to move in tandem with cryptocurrencies.

Cheesecake Factory, Dave & Buster’s — Cheesecake Factory and Dave & Buster’s added 4.4% and 5.2%, respectively, after Jefferies upgraded the restaurant stocks to buy from hold. “We are incrementally more positive on the full service category following delta/inflation sell-off and exuberant Consensus forecasts reigned in,” Jefferies said.

Roku — Roku shares fell 3.8% after Wells Fargo downgraded the video streaming platform to equal weight from overweight. Wells Fargo said rising competition makes expectations for Roku’s revenue growth likely too high.

— CNBC’s Jesse Pound, Pippa Stevens and Tanaya Macheel contributed reporting

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Business

Stock futures open mostly flat ahead of the kickoff of earnings season

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Traders work on the floor of the New York Stock Exchange.

NYSE

Stock futures opened mostly flat late Sunday as earnings season kicks off this week.

Futures on the Dow Jones Industrial Average added 25 points, or 0.07%. S&P 500 futures edged 0.08% higher and Nasdaq 100 futures rose 0.17%.

The three major indexes closed at record highs on Friday after a sell-off Thursday as investors worried about a potential slowdown in U.S. economic growth. Friday’s rally brought the averages into the green for the week; the Dow added 0.24% week-to-date, while the S&P 500 and Nasdaq each rose about 0.4% in the same period.

Stocks tied to the economic recovery that fell during Thursday’s session logged gains on Friday. Financial names rebounded, with Bank of America and Goldman Sachs both jumping more than 3%. Travel-related stocks also rose; Royal Caribbean popped 3.6%, Wynn Resorts gained close to 2%, and American Airlines and United Airlines both added more than 2%.

The major averages’ record highs come ahead of the start of quarterly earnings reports. S&P 500 companies’ profits are expected to be up 65% from the same quarter a year ago, according to Refinitiv, bouncing back from the worst of the pandemic. The expected surge in profits would be the strongest earnings growth since the fourth quarter of 2009, as stocks recovered from the financial crisis.

“The second quarter could be as good as it gets for economic growth,” Callie Bost, senior investment strategist at Ally Invest, said. “Earnings growth may slow, but analysts still expect S&P profits to grow by double digits in the next two quarters. It’s crucial not to lose faith in the market just because the economy’s strongest growth may be behind us.”

JPMorgan Chase, Goldman Sachs and PepsiCo kick off earnings season with results due out before the bell on Tuesday. Bank of America, Citigroup, Wells Fargo, Delta Air Lines and BlackRock report on Wednesday, and Morgan Stanley, Truist and UnitedHealth post results on Thursday.

Investors also anticipate important data to be released this week, including key readings on inflation on Tuesday and Wednesday, and June retail sales on Friday.

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