Movers: Best Buy, Etsy, Meta Platforms, Spirit, Southwest, Stanley Black & Decker, Teladoc

Barry Adams
28 Jul, 2022
New York City

Stocks on Wall Street rested after the U.S. economy shrank for the second quarter in a row. 

Seasonally adjusted GDP declined at a slower pace of 0.9% in the second quarter following the 1.6% fall in the first quarter, the Bureau of Economic Analysis reported Thursday. 

The S&P 500 index rose 0.3% to 4,034.44 and the Nasdaq Composite index gained 0.06% to 12,037.61. 

Futures of crude oil price increased 54 cents to $97.80 a barrel and natural gas was nearly unchanged at $8.55 a thermal unit. 

Stocks traded volatile after benchmark indexes soared more than 2% in the previous session following the 0.75 percentage point rate hike by the Federal Reserve. 

Best Buy Co increased 1.7% to $75.78 after the electronics retailer lowered its comparable sales outlook for the fiscal year 2023 second quarter ending in July to decline 13% and revenues are expected to rise 7.5% from two years ago. 

Comparable sales in the second quarter 2022 rose 19.6% as sales were supported by pandemic assistance. 

The retailer guided fiscal year 2023 comparable sales to decline 11%, revised from the previous estimate of a decline between 3% and 6%. 

Etsy Inc increased 9.8% to $104.81 after the e-commerce marketplace operator reported higher-than-expected sales and earnings. 

Consolidated revenues increased 10.6% to $585.1 million, net income declined 25.6% to $73.1 million and diluted earnings per share fell to $0.51 from 61 cents a year ago. 

The online marketplace operator said active sellers surged 41.5% to 7.4 million and active buyers increased 3.4% to 93.9 million in the quarter. 

Gross market sales volume on the platform declined 0.4% to $3.0 billion. 

Metal Platforms, Inc declined 7.9% to $156.12 after the parent of Facebook and Instagram said June quarter revenues declined 1% to $28.8 billion on digital advertising slowdown. 

Net income in the period fell 36% to $6.7 billion from $10.4 billion a year ago. 

Diluted earnings per share fell 32% to $2.46 from $3.61 a year ago.  

Spirit Airlines rose 3.8% to $25.22 after the discount airline canceled its plan to merge with Frontier Air and agreed to be acquired by JetBlue after protracted negotiations. 

The proposed $3.8 billion merger, which still requires a clearance with the U.S. Department of Justice, will create the fifth-largest U.S. airline after a fierce battle between Frontier and JetBlue. 

Frontier Group soared 8.9% to $12.26 and JetBlue declined 2.7% to $8.17. 

Southwest Airlines declined 8.7% to $37.20 after the discount carrier guided a challenging business environment and predicted higher operating costs. 

The company also reported total operating revenues increased 67.8% to $6.7 billion and net income soared 118% to $760 million from a year ago. 

Diluted earnings per share rose to $1.20 from 57 cents a year ago. 

Stanley Black & Decker, Inc plunged 12.4% to $102.81 after the toolmaker lowered its full-year outlook and said the demand softened towards the end of the quarter. 

Teladoc Health Inc plunged 23.5% to $33.01 after the online healthcare platform provider said June quarter revenues rose 18% to $592 million. 

Net income plunged to $3.1 billion from $133.8 million a year ago after the company took a one-time goodwill charge of $3 billion and increased total charge in the six-month period to $9.6 billion.  

Average revenue per U.S. paid member increased to $2.60 in the second quarter from $2.31 a year ago.