Movers: 1Life Healthcare, AT&T, American Airlines, CSX, Carnival, DR Horton, Tesla, United Airlines

Barry Adams
21 Jul, 2022
New York City

Benchmark indexes on Wall Street lacked direction after trading near 6-week highs as investors digested the latest earnings from home builders and transportation companies. 

The S&P 500 index fell 0.7% to 3,931.47 and the Nasdaq Composite index fell 0.7% to 11,821.90 

Futures of crude oil declined $3.27 to $96.41 a barrel and natural gas rose 32 cents to $7.68 a unit.  

Heatwaves in the U.S. and Europe lifted prices of natural gas and Russia resumed its natural gas supply to Europe through Nord Stream 1 pipe network. 

The yield on 10-year Treasury notes edged lower to 2.98% and the yield on German government 10-year Bund hovered near 1.246% after the European Central Bank lifted rates for the first time in eleven years. 

The yield on Japanese government bonds were nearly unchanged after the Bank of Japan left its key lending rate unrevised at 0.25%.  

D.R. Horton fell 3.3% to $70.74 after the home builder said June quarter sales increased 21% to $8.8 billion and net income surged 48% to $1.6 billion or $4.67 a share from a year ago. 

The home builder also lowered its full-year outlook on moderating demand to a range between $33.8 billion to $34.6 billion and complete between 83,000 and 85,000 homes. 

The company had previously guided annual revenues to fall between $35.3 billion to $36.1 billion and complete between 88,000 and 90,000 homes. 

American Airlines Group declined 7.8% to $14.02 after the company reported its first quarterly profit since the start of the pandemic. 

The airline reported record second quarter revenue of $13.4 billion, a 12.2% increase over the same period in 2019 on 8.5% less capacity.

Second quarter net income was $476 million or $0.68 per diluted share.

Carnival Corp dropped 12.3% to $9.70 after the cruise line operator planned a $1 billion common stock offering to finance general corporate expenses. 

Tesla Inc gained 6.2% to $788.23 after the electric vehicle maker reported quarterly sales jumped 42% and net income doubled from a year ago. 

United Airlines dropped 9.0% to $27.93 after the company said second quarter revenues increased to $12.1 billion from $5.5 billion a year ago and jumped 6% from $11.4 billion in 2019.

The airline swung to a quarterly profit of $329 million from a loss of $434 million a year ago and declined from $1.05 billion in the corresponding period in 2019. 

Diluted earnings per share in the second quarter were $1.00 compared to a loss of $1.34 a year ago and $4.02 in the similar period in 2019.  

CSX Corp rose 4.01% to $30.92 after the railroad operator said second quarter revenues increased 28% to $3.82 billion and net income was nearly unchanged at $1.78 billion or 54 cents a diluted share. 

 AT&T fell 8.98% to $18.63 after the telecom operator reported a jump in wireless customers by 800,000 in the second quarter and lifted its guidance for wireless revenue growth. 

Revenues in the second quarter increased 2.2% to $29.6 billion after adjusting for a business unit separation and net income 

Income from continuing operations was $4.8 billion compared to $6.0 billion in the year-ago quarter. 

Diluted earnings per common share from continuing operations was $0.59 compared to $0.76 a year ago. 

Postpaid phone-only average revenue per user increased 1.1% to $54.81 from a year ago on the improved international roaming and a mix shift to higher-priced unlimited plans.

1Life Healthcare surged 68.9% to $17.18 after the operator of primary care network of One Medical clinics agreed to be acquired for $18 a share or $3.9 billion by Amazon.com Inc

Amazon.com, Inc declined 0.4% to $122.22 and the online retailer and tech services provider has been making a push in the healthcare sector with the purchase of online pharmacy PillPack in 2019 for $3 billion.