U.S. Movers: Coca-Cola, Corning, General Electric, General Motors, Halliburton, Mueller Industries, PacWest Bancorp, NVR, RTX, Spotify, Tesla

Scott Peters
24 Oct, 2023
New York City

Benchmark indexes advanced after positive earnings, and stable Treasury yields supported a rebound in market indexes for the second day in a row.

The S&P 500 index increased 0.7% to 4,245.11, and the Nasdaq Composite rose 0.8% to 13,120.29.

The yield on 2-year Treasury notes increased to 5.09%, 10-year Treasury notes inched higher to 4.88%, and 30-year Treasury bonds edged up to 5.0%.

The Coca-Cola Company jumped 2.8% to $55.63 after the beverage company reported stronger-than-expected third-quarter earnings and lifted its annual outlook as the company sold more cases of beverages.

Revenue in the third quarter increased 8% to $11.95 billion from $11.1 billion, net income advanced 9% to $3.1 billion from $2.8 billion, and diluted earnings per share rose to 71 cents from 65 cents a year ago.

Unit case volume increased 2% from a year ago, and price and product mix jumped 9%, driving comparable sales by 8% in the quarter.

General Electric Company increased 7.4% to $114.47 after the engineering and healthcare company reported stronger-than-expected third quarter earnings.

Revenue in the third quarter rose 20% to $17.4 billion from $14.5 billion, driven primarily by increases in the aerospace and renewable energy segments.

GE Aerospace orders rose 34% and revenue jumped 25%, led by commercial engines and services, and defense orders rose 8%.

Renewable energy segment revenue rose 14%, driving revenue growth at GE Vernova.

Net income attributable to shareholders increased to $258 million from $88 million, and diluted earnings per share rose to 24 cents from 8 cents a year ago.

General Electric is set to trade as two independent companies, GE Aerospace and GE Vernova, in the second quarter of 2024.

General Motors Company rose 0.3% to $29.29 after the vehicle maker reported rising sales and earnings in the third quarter, but the automaker also pulled its annual earnings outlook, citing the ongoing United Auto Workers strike.

Revenue in the third quarter increased 5.4% to $41.89 billion, net income edged lower to $3.06 billion from $3.31 billion, and diluted earnings per share eased to $2.20 from $2.25 a year ago.

The company also withdrew its previously issued adjusted annual earnings outlook between $12 billion and $14 billion and net income attributable to shareholders between $9.3 billion and $10.7 billion.

Tesla Inc. rose 1.8% to $215.91, and the company said in a regulatory filing that it is facing several investigations from the Department of Justice covering a range of electric vehicles, "personal benefits and related parties and personnel decisions," and other issues involving its operations.

RTX Corp. soared 5.9% to $77.48 after the aerospace company reported better-than-expected revenue and earnings in its latest quarterly results.

Revenue in the third quarter declined 21% to $13.5 billion from $17 billion, and the company swung to a net loss of $984 million from a profit of $1.4 billion, and diluted earnings per share dropped to ($0.68) from 94 cents a year ago.

The backlog at the end of the third quarter was $190 billion, of which $115 billion was from commercial aerospace and $75 billion was from defense contracts.

The board of directors approved a $10 billion accelerated stock repurchase program scheduled to begin immediately, resulting in a post-merger shareholder return commitment of between $36 billion and $37 billion through 2025, up from the previous range of between $33 billion and $35 billion.

Spotify Technology SA jumped 7.2% to $165.10 after the audio streaming company reported third-quarter revenue that met investors' expectations, and the company said monthly active subscribers are expected to top 600 million in the fourth quarter.

Mueller Industries increased 2.2% to $35.85 after the company reported its latest quarterly results.

Revenue in the third quarter declined to $819.8 million from $944.8 million, reflecting lower demand in the wholesale channel as distributors worked through inventories of products used in residential construction.

Net income declined to $132.7 million from $154.5 million, and diluted earnings per share fell to $1.17 from $1.37 a year ago, reflecting a two-for-one stock split effective October 20.

NVR Inc. declined 2.6% to $5,362.0 after the home builder reported a decline in revenue in the third quarter.

Consolidated revenue declined 7% to $2.57 billion from $2.85 billion, net income rose to $432.2 million from $411.4 million, and diluted earnings per share advanced to $125.56 from $118.51 a year ago.

New home orders in the third quarter increased by 7% to 4,746 units from 4,421 units, and the average sales price of new orders increased by 1% to $456,100 a year ago.

The cancellation rate decreased to 14% in the third quarter from 15% a year ago.

The average home settlement price declined 3% to $448,000, and the backlog of homes sold but not settled dropped on a unit basis by 4% to 10,371 units and eased on a dollar basis by 6% to $4.8 billion from a year ago.

Halliburton Company fell 2.4% to $40.67 after the company reported strong quarter results driven by higher demand for oil drilling services.

Revenue in the third quarter increased to $5.8 billion from $5.3 billion, net income advanced to $724 million from $549 million, and diluted earnings per share rose to 79 cents from 60 cents a year ago.

Oil well completion and production revenue in the quarter was sequentially flat at $3.5 billion, and drilling and evaluation service revenue was sequentially flat at $2.3 billion.

North American revenue sequentially declined 3% to $2.6 billion, but international revenue sequentially rose 3% to $3.2 billion.

PacWest Bancorp declined 6.2% to $6.85 after the regional bank reported mixed quarterly results.

Total interest income increased to $446 million from $410 million, the company swung to a net loss of $33.3 million from a profit of $122 million, and diluted earnings per share dropped to ($0.28) from $1.02 a year ago.

Interest-bearing deposits increased 1% to 79%, or $26.6 billion, and cost-on-average deposits increased to 2.98% from 2.62% in the previous quarter, respectively.

At the end of the quarter, FDIC-insured deposits represented 81% of total deposits.

Total borrowings at the end of the quarter were $6.29 billion with a weighted average rate of 5.43%, reflecting $4.9 billion borrowed under the Bank Term Funding Program with a rate of 4.38%.

Securities held-for-sale declined to $4.48 billion from $5.89 billion, and securities held-to-maturity edged up to $2.28 billion from $2.26 billion a year ago.