Energy Stocks Surge as Exxon Mobil Nears $60 Billion Deal with Pioneer Natural Resources
In midday trading, several companies have been making headlines, driving significant market movements. Pioneer Natural Resources, an energy stock, saw a remarkable surge of nearly 10% following reports from The Wall Street Journal that Exxon Mobil is close to acquiring Pioneer for around $60 billion. This potential deal has captured investors’ attention and boosted Pioneer’s stock price. Meanwhile, Exxon Mobil’s shares slid 1% amid the news.
Tesla, the renowned electric vehicle company, experienced a slight dip of nearly 1% after reducing the prices of some of its Model 3 and Model Y versions in the U.S. This move comes as part of Tesla’s strategy to stimulate demand, which began with price cuts worldwide at the end of last year. Additionally, Tesla reported third-quarter deliveries that fell short of market expectations.
Levi Strauss, the denim apparel maker, faced a decline of 2.5% in midday trading after cutting its full-year sales forecast. The company’s fiscal third-quarter revenue missed expectations, leading to a revision of its sales guidance. Levi’s CEO attributed the decrease in consumer purchases to inflation, rising mortgage and gas prices.
On a positive note, MGM Resorts, the resort-and-casino operator, witnessed a 5% increase in its stock price after providing an update on a cybersecurity issue it encountered last month. MGM stated that the cyberattack it experienced in September would result in an approximate cost of $100 million. However, the company expects the impact beyond the third quarter to be minimal, with no significant material effect on its full-year financial conditions and operational results.
Financial services company Freedom Holding saw a slight decline of about 1% following reports that it is under investigation by federal prosecutors and the Securities and Exchange Commission. The investigation is focused on compliance issues, insider stock moves, and an offshore affiliate.
Philips, a healthcare technology company, experienced a 7% drop in its U.S.-listed shares after the U.S. Food and Drug Administration criticized the company’s handling of a sleep apnea device recall in 2021. The FDA has mandated additional testing on the affected machines, known as CPAP devices.
Aehr Test Systems, a semiconductor test system provider, faced a significant decline of 14% despite reaffirming its full-year revenue guidance of at least $100 million. Analysts polled by FactSet had anticipated higher revenue of $102.9 million.
In positive news, pharmaceutical stock Apellis Pharmaceuticals gained 3% after receiving an upgrade to an overweight rating from JPMorgan. The upgrade was based on the potential of Apellis’ eye disease treatment, which could drive a significant increase in the company’s shares.
Cosmetics retailer e.l.f. Beauty saw a 4% increase in its stock price following an upgrade to buy from hold by Jefferies. The firm highlighted e.l.f. Beauty as a leader in bringing “first to mass” items to the market.
Liberty Media Formula One, a motorsports stock, experienced a 2% rise after receiving an upgrade to buy from neutral by Citi. The bank dismissed concerns surrounding the Las Vegas Grand Prix as overblown.
Frontdoor, a home repair company, witnessed a 4% climb in its shares after receiving an upgrade to buy from hold by Truist. Truist noted that Frontdoor’s shares are currently trading at attractive levels.
Shares of fixed income trading platform MarketAxess jumped approximately 4% after UBS initiated coverage with a buy rating. UBS described MarketAxess as a “pure-play on the electronification of credit trading,” which is still in the early stages.
On the other hand, utility provider AES dropped 3% to a new 52-week low after UBS downgraded the stock to neutral from buy and significantly reduced its price target. UBS cited rising interest rates and an expected earnings deceleration in the infrastructure business as coal operations shut down.
While the market experiences fluctuations, these companies continue to navigate various challenges and opportunities, showcasing the dynamic nature of the business world.