Movers: Abbott, Carnival Cruise, CMC, Jabil, KLA, Revlon, Tesla, Twitter

Barry Adams
16 Jun, 2022
New York City

Stocks declined a day after the Fed lifted rates and trimmed economic growth outlook. 

The Nasdaq composite plunged as much as 4% and tech stocks led the decliners. For the year, the index has dropped 32.5%. 

The S&P 500 plunged 3.1% in a broad selloff and extended this year's loss deeper in bear market to 23.23%. 

Airlines were under pressure after the latest run up in oil prices are expected to trim thin operating margins. 

American Airlines declined 9.1% to $12.10, Delta Air dropped 7.6% to $29.53, and United Airlines Holdings fell 8.1% to $34.84. 

Travel stocks were also under pressure in today's market selloff. 

Hilton Hotels declined 4.9% to $115.92, Hyatt Hotel Corporation fell 5.4% to $77.46, and Las Vegas Sands Corp dropped 4.9% to $31.06. 

The leading tech stocks led the decliners. 

Apple Inc fell 3.4% to $130.80, Amazon dropped 4.01% to $103.42, Microsoft decreased 2.8% to $244.71, and Alphabet Inc declined 3.3% to 2,136.35. 

Carnival Corp dropped 10.1% to $8.85, Royal Caribbean Cruises Ltd fell 9.9% to $35.77, and Norwegian Cruise Line declined 10.3% to $10.52. 

Abbott Laboratories fell 2.7% to $102.50 after the company said it has stopped production of its EleCare specialty formula after wind and rain storms flooded the area and plant located in Sturgis, Michigan. 

The company said it has notified FDA and production will be "delayed for a few weeks."  

Three days ago the company said it will be importing 1.1 million pounds of powder infant formula to the U.S. from its manufacturing facility in Granada, Spain, beginning this month through this summer.

Commercial Metals Company declined 4.6% to $39.60 after the company said net income in the fiscal third quarter ending in May increased 140% from a year ago to $312.4 from $130.4 million and revenues jumped 25% to $2.03 billion. 

Diluted earnings per share jumped to $2.54 from $1.07 a year ago. 

Jabil Inc declined 8.4% to $53.97 after the electronics contract manufacturer said revenues in the fiscal third quarter ending in May increased 15.2% to $8.3 billion. 

Net income increased 28.9% to $218 million from a year ago and diluted earnings per share increased to $1.52 from $1.12. 

KLA Corp declined 3.7% to $311.89 and the company announced a $6 billion stock repurchase program ahead of investors day tomorrow in New York. 

The chip equipment maker increased its quarterly dividend 24% to $1.30 a share. 

The company also reaffirmed its current June quarter sales between $2.3 billion and $2.55 billion and adjusted earnings per share between $4.96 and $6.03. 

The company guided fourth quarter revenues between $8.1 billion and $8.7 billion and diluted earnings per share between $1.78 and $2.18 and full-year revenues near $32.8 billion and core earnings per share $7.45. 

Revlon Inc soared 25.3% to $2.81 despite the cosmetic company filing for a bankruptcy protection under the debt of $3.3 billion. 

Tesla Inc declined 7.7% to $644.50 and investors worried that the recent fall in stock price may force CEO Elon Musk to raise cash by selling company's share to cover Tesla's stock on margin in financing a deal to buy Twitter Inc. 

Twitter Inc decreased 1.0% to $37.60 and Elon Musk in today's meeting with Twitter management and staff is expected to reconfirm his interest in acquiring the social media platform. 

Musk had threatened to pull out of the deal and accused the company of withholding information on fake accounts operated by robots.