Movers: 3M, Coca-Cola, General Electric, General Motors, Shopify, Walmart

Barry Adams
26 Jul, 2022
New York City

Benchmark indexes traded lower ahead of the Fed's rate decision on Wednesday followed by the GDP data on Thursday.

The S&P 500 index declined 1.1% to 3,921.26 and the Nasdaq Composite index fell 1.9% to 11,569.95. 

Futures of crude oil declined $1.20 to $95.10 a barrel and natural gas rose 22 cents to $8.95 a thermal unit. 

Natural gas futures surged Russia controlled Gazprom throttled down gas flow to 20% of capacity of the Nord Stream 1. 

3M increased 6.3% to $142.72 after the company reported better-than-expected earnings and said it plans to separate its healthcare unit as a separate independent company. 

Coca-Cola Company gained 1.8% to $63.33 after the beverage maker said second quarter revenues rose 12% to $11.3 billion and net income dropped 28% to $1.9 billion from $2.6 billion a year ago. 

Diluted earnings per share declined to 44 cents from 61 cents a year ago. 

The concentrate volume sales increase of 4 percentage points and acquisition related sales increase of 2 percentage points was offset by 6 percentage points decline in sales from the stronger dollar. 

The increase in price and volume mix of 12 percentage points drove all of the total sales increase in the quarter.   

Unit case volumes across all geographies rose 8% and in the North America rose 2%. 

The company guided organic revenues in the full-year to increase between 12% and 13%, an increase from the previous estimate between 7% and 8%.

Coca-Cola guided its adjusted earnings per share based on constant currency to increase to between 14% and 15% from the previous estimate of between 8% and 10%. 

General Electric increased 6.9% to $73.10 after the company reported higher earnings and cash flow on the recovery in its aviation engine business. 

General Motors declined 2.8% to $33.75 and the vehicle maker said June quarter revenues increased 4.6% to $35.8 billion and net income plunged 40% to $1.7 billion from $2.8 billion a year ago. 

The company blamed the earnings fall on China lockdown and parts shortages preventing the automaker from shipping 100,000 vehicles. 

The automaker said it has secured materials needed to make one million electric vehicles by 2025. 

General Motors guided full-year net income between $9.6 billion and $11.2 billion and adjusted operating earnings between $13.0 billion and $15.0 billion.

The company also guided full-year diluted earnings per share between $5.76 and $6.76 and adjusted earnings per share between $6.50 and $7.50. 

Shopify plunged 15.5% to $31.02 after the e-commerce platform operator announced a layoff of 10% or about 1,000 employees. 

Walmart Inc declined 7.9% to $121.62 after the retailer lowered its outlook for the fiscal year second quarter and said consumers are sticking to basic necessities because of high food and energy prices. 

The shifting consumer pattern is also forcing the retailer to mark down several items including apparel and other discretionary items.