Nike, Karuna, Ansys, Rocket Lab, NetEase, and More Stock Market Movers


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 10%.

Fellow athletic-gear retailers

Dick’s Sporting Goods

and

Foot Locker

fell 3.3% and 4.7%, respectively.

Karuna Therapeutics
,

the neuroscience-drug developer, was rising 47% to $316.02 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 2.5%.

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Ansys

jumped 9.4% 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

was rising 28% 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. “

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 1.4%.

U.S.-listed shares of

NetEase

dropped 17% after China proposed new curbs on online gaming.

Tencent

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was down 11%.

Lumentum Holdings

was rising 3.1% 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 6.2%.

Tesla

rose 0.3% to $255.35.11 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

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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 joseph.woelfel@barrons.com 



Read More:Nike, Karuna, Ansys, Rocket Lab, NetEase, and More Stock Market Movers

2023-12-22 16:06:00

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