Market movers: Stocks seeing action on Friday – and why
A round-up of some of North American stocks moving in both directions today
The Weston family claims to have acquired part of their shares in George Weston Ltd. as part of an internal reorganization. (WN-T) and Loblaw Companies Ltd. (LT) to have sold.
Both companies were flat in early trading.
Through the sale by Galen Weston, he remains majority shareholder of the bakery and real estate company George Weston Ltd. with 52.8 percent of the outstanding shares.
The companies say George Weston Ltd. will hold 52.6 percent of the outstanding shares in the food and drug store company Loblaw after the deal.
The deal, which was technically closed with a Galen Weston company, grants the two companies a 97 percent discount on the average purchase price of the shares.
The companies say Galen Weston has no plans to sell additional shares outside of the Weston family.
The announcement said the shares will change hands after the markets close on December 21st.
Tesla Inc. (TSLA-Q) rose when its big entry into the S&P 500 was preceded by a huge trade. By the end of Friday’s session, an unprecedented $ 80 billion of the electric car maker’s shares had changed hands.
Elon Musk’s Tesla will be the most valuable company ever to be included in Wall Street’s main benchmark on Monday, accounting for over 1 percent of the index. The electric car maker’s shares have risen around 60 percent since mid-November when its debut in the S&P 500 was announced.
Tesla’s inclusion in the S&P 500 forced index tracking funds to buy over $ 80 billion worth of Tesla stock by the end of Friday’s session in order for their portfolios to accurately reflect the index, according to S&P Dow Jones Indices. These funds must simultaneously sell shares of other S&P 500 components for the same amount.
“Index managers must sell a large position in the other S&P 500 components to fund the addition of TSLA, which could have a significant impact on the overall index,” Ivan Cajic, director of index research at Virtu ITG Canada, wrote a report this week.
See also: Tesla is going to S&P after the meteoric rise and some investors want more
On the retreat
The shares of BlackBerry Ltd. (BB-T) fell on Friday following the release of inline financial results for the third quarter of 2021.
Quarterly software and services revenue for the Waterloo, Ontario-based company is gradually returning to prandemic levels as the company doubles its efforts to be a key component of the growing market for processing data in sensor-filled cars.
In early December, BlackBerry partnered with Amazon.com Inc.’s cloud services division to jointly develop IVY (the Intelligent Vehicle Data Platform), which automakers can use to read and process data from vehicle sensors to find routes improve the driving experience.
If successful, the software could become a significant new source of revenue by building on BlackBerry’s QNX connected car operating system. Between the IVY announcement on December 1 and the market close on Thursday, BlackBerry shares rose nearly 40 percent.
John Chen, chief executive officer, told analysts on a conference call Thursday evening that the market opportunity for IVY could be “very big” and that it has the potential to become a platform for a full ecosystem of in-car apps and services. BlackBerry would maintain all of IVY’s customer relationships, but Amazon would share in sales. “That type of agreement is rare,” he said.
He added that he expects BlackBerry IVY to appear in 2023 vehicle models.
– Josh O’Kane
See also: Analysts’ upgrades and downgrades on Friday
Moderna Inc. (MRNA-Q) fell despite U.S. President Donald Trump tweeted that his vaccine had been approved and would be shipped immediately, although the U.S. Food and Drug Administration has yet to make a public announcement regarding its decision.
A panel of external FDA advisors met Thursday to discuss Moderna’s vaccine, and a decision from the agency was expected on Friday.
“The Moderna vaccine is mostly approved. The distribution should begin immediately, “said Trump in a post on Twitter. FDA officials could not be reached immediately for comment.
Tech major Microsoft Corp. (MSFT-Q) lost ground after saying Thursday it found malicious software in its systems linked to a massive hacking campaign released by US officials this week, adding to a growing list under attacked government agencies added a top technology target.
The Redmond, Washington company uses Orion, SolarWinds Corp.’s widely used network management software that was used in the alleged Russian attacks on key US authorities and others.
Microsoft had also used its own products to target victims, said those familiar with the matter. The US National Security Agency issued a rare “Cybersecurity Advisory” on Thursday detailing how hackers compromised certain Microsoft Azure cloud services and instructed users to lock their systems.
“Like other SolarWinds customers, we have been actively looking for indicators of this actor and can confirm that we have discovered harmful Solar Winds binaries in our environment that we have isolated and removed,” a Microsoft spokesman said, adding that the company found “no” signs that our systems were being used to attack others. “
The US delivery company FedEx Corp. (FDX-N) announced Thursday that quarterly earnings nearly doubled after interest rate hikes and rising volume helped lower the cost of shipping pandemic ecommerce purchases to home addresses.
Shares in the Memphis-based company, which has nearly doubled in value in the past 12 months, fell on Friday as executives warned that the new wave of COVID-19 cases is adding to economic uncertainty.
FedEx adjusted net income for the second quarter of fiscal year increased from $ 660 million, or $ 2.51 per share, to $ 1.30 billion, or $ 4.83 per share, last year. Sales rose 19 percent to $ 20.6 billion.
Analysts expect earnings of $ 4.01 per share and sales of $ 19.5 billion, according to Refinitiv.
FedEx and rival United Parcel Service have added a number of surcharges and raised prices to protect profits as they grapple with unprecedented volumes from the pandemic and, more recently, the traditional high point of vacation shipping.
UPS (UPS-N) shares also fell.
The US health insurer Centene Corp. (CNC-N) fell Friday as it forecast an adjusted profit for 2021 that fell short of Wall Street estimates after saying membership in its Obamacare business fell below expectations.
According to Refinitiv’s IBES data, the company expects adjusted earnings for 2021 between $ 5 and $ 5.30 per share, missing estimates of $ 5.44 per share.
Total revenue is likely to be between $ 114.1 billion and $ 116.1 billion, Centene said, while a health benefit rate equivalent to the amount spent on medical claims versus premium income was expected to be around 86.6 percent 87.2 percent.
Last month, the St. Louis, Missouri-based company warned of ongoing challenges from the COVID-19 pandemic, unlike some of its competitors, including Humana Inc, which saw profits spike for 2021 due to the strong growth of their Medicare Advantage health plans record.
With files from employees and wires