The stock market is recovering from its earlier slump, with the S&P 500 up 1.5% and the tech-heavy Nasdaq Composite up 1.5%. The Dow Jones Industrial Average added 1.9%, and the Russell 2000 is up 1.3%.
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Key economic indicators released this morning indicate an improving inflation environment, strengthening expectations that the Fed might start cutting interest rates in September.
The personal consumption expenditures (PCE) price index rose by 0.1% in June, with a year-on-year increase of 2.5%. The core PCE price index, which excludes food and energy, gained 0.2% for the month, up 2.6% from last year. Consumer spending climbed by 0.3%.
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S&P 500 big stock movers today
Five S&P 500 stocks making big midday moves are 3M Co (MMM) (+21%), Mohawk Industries Inc (MWK) (+20%), Charter Communications Inc (CHTR) (+15%), Norfolk Southern Corp (NSC) (+11%), and Centene Corp (CNC) (+10%).
Related: Stock Market Today: Stocks rebound as inflation data boosts rate cut bets
The worst-performing five S&P 500 stocks with the largest midday drop are Dexcom Inc (DXCM) (-40%), Biogen Inc (BIIB) (-7%), Resmed (RMD) (-5%), DaVita Inc (DVA) (-5%), and L3Harris Technologies Inc (LHX) (-5%).
Stocks also worth noting with significant moves include Deckers Outdoor Corp (DECK) (+7%), Meta Platforms (META) (+3%), Microsoft (MSFT) (+2%) and Pfizer (PFE) (+2%).
Deckers Outdoor stocks up after robust shoe sale
Hoka and Uggs parent Deckers Outdoor’s shares added 7% following earnings beat and guidance raise.
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The company reported diluted earnings per share of $4.52, which beats the anticipated $3.43 a share. The revenue of $825.3 million is up 22% from a year earlier and also beats the $805 million estimate.
The revenue growth was primarily driven by the running shoe brand Hoka as it achieved its first-ever $300 million quarter, according to CEO Dave Powers. But Uggs global revenue decreased 2% to $208 million, driven by seasonal category shift.
“The lower average selling price in the sandal category created a revenue headwind relative to the exceptional volumes of Fluff that were sold during Q1 in the last two years,” said Powers in the earnings call.
Deckers keeps its net sales goal of a 10% increase to $4.7 billion for fiscal 2025.
Analysts from Barclays, UBS, and TD Cowen have raised the firm's price target.
Diabetes device maker Dexcom tumbles following weak outlook
Shares of Dexcom plummeted 40% following its disappointing second-quarter revenue and weak outlook.
The diabetes management company posted its second-quarter earnings on Thursday, recording a revenue of $1 billion, below the $1.04 billion forecast. The adjusted earnings per share of 43 cents beats the expected 39 cents.
DexCom also lowers its full-year revenue outlook to a $4 billion to $4.05 billion range, down from $4.2 billion to $4.35 billion.
Despite The Lancet's projection that diabetes patients will more than double to 1.3 billion by 2050, DexCom CEO Kevin Sayer attributed the revenue shortfall to fewer new patients. "New customers fall short of our expectations despite strong overall additions," Sayer said during the earnings call.
3M jumps after strong earnings and outlook
Shares of 3M added more than 20% midday after raising the low end of its full-year adjusted profit forecast and reporting upbeat second-quarter sales.
The company reported earnings of $1.93 per share in the second quarter, with revenues reaching $6.3 billion, exceeding the estimated $1.67 per share on $5.87 billion in revenue.
3M also raises adjusted earnings per share view to $7.00 to $7.30 from $6.80 to $7.30. “3M updated its full-year adjusted earnings expectations given the company's strong operational execution in the first half of the year,” the company said.
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