Stocks closed mixed Friday as the Federal Reserve’s preferred measure of inflation, the personal consumption expenditures price index, showed prices continued to cool in November.
These stocks made moves Friday:
Nike
reported fiscal second-quarter earnings that beat analysts’ expectations but announced a $2 billion cost-cutting plan over the next three years as it expects sales to soften in the second half of fiscal 2024.
Nike
said it was looking at “streamlining” the company and would record pretax restructuring charges of about $400 million to $450 million, mostly in the third quarter, ”primarily associated with employee severance costs.” Shares of the sneaker and apparel company dropped 12%.
Shares of fellow athletic-gear retailers
Dick’s Sporting Goods
and
Foot Locker
fell 2.8% and 3.9%, respectively.
Karuna Therapeutics,
the neuroscience-drug developer, rose 48% to $317.85 after reaching an agreement to be acquired by
Bristol Myers Squibb
for $330 a share in cash, or about $14 billion. Bristol Myers was up 2%.
Ansys
jumped 18% following a report from Bloomberg that said the simulation software company was working with advisers to weigh its options, including a sale, after getting takeover interest.
Rocket Lab
rose 23% after the commercial space company said it received a contract from a U.S. government customer worth $515 million to “design, manufacture, deliver, and operate 18 space vehicles.”
Shared of
Coinbase Global
rose 4.4% to $175.48 after JMP Securities raised its price target on the crypto broker to $200 from $107 and maintained its Outperform rating.
Berkshire Hathaway
purchased 5.2 million shares of
Occidental Petroleum
in recent days, bringing its total ownership in the energy company to 243.7 million shares, or a 27.7% stake, according to a filing with the Securities and Exchange Commission. Occidental shares rose 0.6%.
U.S.-listed shares of
NetEase
dropped 16% after China proposed new curbs on online gaming.
Tencent
finished 12% lower.
Lumentum Holdings
gained 2.9% after shares of the optical and photonic products provider were upgraded to Buy from Hold at Craig-Hallum.
AAR,
the provider of aviation services to commercial and government operators, posted adjusted fiscal second-quarter earnings that matched analysts’ estimates but sales of $545.4 million that missed expectations of $557 million. The stock declined 10%.
Tesla
dropped 0.8% to $252.54 after analysts at RBC Capital reduced their delivery estimates for the electric-vehicle maker in the fourth quarter to 456,000 from 476,000, citing registration data and app downloads. The analysts maintained their Outperform rating and $300 price target on
Tesla
shares. Analysts at Wedbush, meanwhile, raised their price target on Tesla to $350 from $310 based on the “increasingly bullish view of further EV share gains and margin stabilization in 2024.” Wedbush reiterated its Outperform rating on the stock and said it believes Tesla will reach $1 trillion market cap next year.
Write to Joe Woelfel at [email protected]
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