Wednesday, 17 July 2024
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Stock Market

US Stocks Rise as FedEx Surges on Earnings Report

  • FedEx shares jumped 15.5% after surpassing earnings estimates.
  • General Mills stock fell 4.6% due to a drop in quarterly sales.
  • Rivian Automotive soared over 23% with Volkswagen’s potential $5 billion investment.

FedEx experienced a significant 15.5% increase in its stock price after the company reported earnings that exceeded expectations, thanks to job cuts and other cost-saving measures. In contrast, General Mills’ stock fell by 4.6%, driven by a 6% decline in quarterly sales, as inflation impacted consumer demand.

Among other notable movements, Rivian Automotive’s stock surged by more than 23% following Volkswagen’s announcement of a potential $5 billion investment to form a joint venture.

Wall Street Ends Higher Amid Mixed Corporate Earnings

The major indices on Wall Street ended higher on Wednesday, buoyed by significant stock movements in response to corporate earnings. The Dow Jones Industrial Average edged up less than 0.1%, closing at 39,127.80, while the S&P 500 rose 0.2% to finish at 5,477.90. The Nasdaq Composite Index gained 0.5%, ending at 17,805.16.

FedEx led the pack with a 15.5% increase after exceeding earnings expectations, bolstered by cost-cutting measures including job reductions. In contrast, General Mills saw its shares drop by 4.6% due to a 6% decline in quarterly sales, as inflation pressured consumer spending.

Electric vehicle maker Rivian Automotive experienced a surge of over 23% following Volkswagen’s announcement of a potential $5 billion investment to create a joint venture. This significant boost reflects growing investor confidence in the electric vehicle sector. Whirlpool also saw a considerable increase of 17.1%, driven by news of a possible takeover bid by Robert Bosch, a German engineering giant.

On the downside, Moderna’s stock fell by 11% after clinical testing revealed that the effectiveness of its RSV vaccine dropped sharply after the first year. This news underscores the challenges biotech companies face in developing long-term effective vaccines.

Overall, the stock market showed resilience on Wednesday, driven by notable individual stock performances despite a light day for new economic data. Investors are now looking forward to Friday’s Personal Consumption Expenditures index report for further insights into the Federal Reserve’s next moves.

“It was not a heavy input day in terms of new news,” said Art Hogan of B. Riley Wealth Management, highlighting the market’s focus on corporate earnings and upcoming economic reports.

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