Midday Market Movers: Tech, Travel and Healthcare Stocks See Sharp Swings on Earnings and Forecasts

Technology Sector Sees Divergent Moves

Technology stocks experienced significant midday volatility, with Super Micro Computer slumping 7% after reportedly cutting its fiscal first-quarter revenue forecast to approximately $5 billion from previous estimates of $6 billion to $7 billion. Meanwhile, quantum computing shares surged following a Wall Street Journal report indicating the Trump administration is in talks to acquire equity stakes in several quantum computing companies. According to the analysis, Rigetti Computing gained 11%, while IonQ advanced 10% and Quantum Computing rose 8%.

Technology Sector Sees Divergent Moves
Industrial and Materials Stocks Rally
Travel and Hospitality Mixed Results
Healthcare and Specialized Services
Transportation and Equipment Rental
Consumer and Communications Sector

Industrial and Materials Stocks Rally

Hexcel jumped 15% and reached a 52-week high after the composite materials maker’s latest financial results exceeded expectations. Sources indicate the company reported adjusted earnings of 37 cents per share, 1 cent higher than the FactSet consensus estimate. Revenue reportedly came in at $456.2 million, compared with the $443.2 million expected from analysts. The company also authorized $600 million for share buybacks, according to the report.

Honeywell rose more than 7% on better-than-expected quarterly results, with the industrial giant earning $2.82 per share, excluding certain items, on revenue of $10.41 billion. Analysts polled by LSEG had expected a profit of $2.57 per share on revenue of $10.14 billion.

Travel and Hospitality Mixed Results

The travel sector showed mixed performance, with Las Vegas Sands surging 12% after the casino resort owner posted strong third-quarter earnings, largely attributed to growth in its Macao and Singapore investments. The company reportedly posted $419 million in profit and adjusted earnings of 78 cents per share for the quarter, topping analysts’ estimates.

However, Wyndham Hotels & Resorts fell nearly 6% after the hotel chain reported third-quarter revenue of $382 million, missing Wall Street’s consensus forecast. The company also reportedly trimmed its adjusted earnings outlook for the year.

Airline stocks showed divergence, with Southwest falling more than 7% despite posting a surprise profit in the latest quarter. The carrier, which is in the midst of a turnaround effort, reportedly expects unit revenue to rise between 1% and 3% for the fourth quarter. In contrast, American Airlines rose 4% after providing a stronger-than-expected earnings report and giving upbeat guidance.

Healthcare and Specialized Services

West Pharmaceutical Services saw shares rise more than 11% after the medical equipment maker raised its profit forecast following better-than-expected third quarter results. Analysts suggest the company has benefited from supplying GLP-1 drugmakers with components for their injector pens.

Medpace Holdings advanced 12% after the contract research organization’s third-quarter earnings exceeded expectations, and it issued improved fourth-quarter guidance. The company reportedly earned $3.86 per share on revenue of $659.9 million, beating analyst estimates.

However, Molina Healthcare plunged more than 21% after the managed-care firm reportedly slashed its annual earnings guidance due to higher costs across government-backed plans.

Transportation and Equipment Rental

Knight-Swift Transportation shares fell 6% after the trucking company earned 32 cents per share in the third quarter, missing analyst expectations for 37 cents, according to FactSet data. Revenue of $1.93 billion reportedly beat the consensus estimate of $1.9 billion.

United Rentals fell nearly 7% after the equipment rental firm reported lackluster quarterly earnings for the third quarter. The company posted adjusted earnings-per-share of $11.70, coming in below the Street’s $12.32 per share consensus, according to reports.

Consumer and Communications Sector

T-Mobile fell more than 5% after third-quarter results showed weaker-than-expected equipment and “other” revenue, with capital spending outlays above what Wall Street analysts were expecting, according to FactSet’s StreetAccount service.

Hasbro rose 2% after reporting third-quarter results that topped expectations, with adjusted earnings of $1.68 per share versus the $1.63 a share expected from analysts. The toymaker noted expected softness in consumer products tied to U.S. retail order timing, which reportedly offset some growth in Wizards of the Coast and digital gaming segments.

Tesla declined 1% after the EV maker reported its third-quarter earnings, missing earnings estimates despite posting a double-digit revenue increase for the period and seeing capital expenditures jump, according to the analysis.