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Stocks trade lower. Movers: American Airlines, Cisco, Disney, more
Stocks edged lower in afternoon trading. The S&P 500 fell 0.34%, while the tech-heavy Nasdaq Composite dropped 0.36%. The Dow Jones Industrial Average slipped 0.3%.
The Russell 2000 Index, which is often seen as a barometer for smaller-cap companies, lost 1.1%.
Bitcoin, which recently surged to a record, fell 1.1% to $89,509.
These moves follow Thursday's release of the October Producer Price Index, which showed a 0.2% increase, aligning with forecasts from economists surveyed by Dow Jones.
S&P 500 big stock movers today
Five S&P 500 stocks making big midday moves are:
The worst-performing five S&P 500 stocks with the largest midday drop are:
Stocks also worth noting include:
Cisco stock falls after earnings beat
Cisco shares lost 2% midday after the networking-equipment giant reported a fourth consecutive quarter of declining revenue, though it surpassed analyst expectations.
For the fiscal first quarter ended Oct. 26 the company reported adjusted earnings of 91 cents a share, above the 87 cents analysts expected. Revenue fell 6% from a year earlier to $13.84 billion, which topped the $13.77 billion consensus estimate.
Related: Analysts reset Cisco stock price targets after earnings
Networking revenue declined 23% to $6.75 billion, under the $6.8 billion consensus, while security revenue doubled to $2.02 billion, exceeding expectations. Cisco’s collaboration segment saw revenue of $1.09 billion, slightly below estimates.
Chief Executive Chuck Robbins noted that AI-related orders from large clients surpassed $300 million, and Cisco remains confident in hitting $1 billion in AI orders this fiscal year.
The company raised its full-year guidance, now forecasting adjusted EPS of $3.60 to $3.66 on revenue between $55.3 billion and $56.3 billion.
That's up from the previous projection of $3.52 to $3.58 in EPS and $55 billion to $56.2 billion in revenue. Analysts expect adjusted EPS of $3.58 for the year on $55.89 billion in revenue.
Disney stock surges after earnings
Disney gained 6% after the company reported fiscal-fourth-quarter earnings that surpassed analyst expectations, driven by growth in its streaming and entertainment segments.
Earnings per share reached $1.14, above the expected $1.10, with total revenue up 6% to $22.6 billion, beating analysts’ $22.48 billion forecast.
Related: Disney World’s Villains Land to feature 13 nostalgic characters
Disney's streaming segment reported operating profit of $321 million, a swing from the year-earlier $387 million loss. The company said in the release that it was confident streaming would be "a significant growth area.”
The company posted a rosy outlook, projecting adjusted-earnings growth for fiscal 2025 in the high single digits percent, with double-digit gains anticipated in 2026 and 2027.
American Air stock pops after analyst upgrade
American Airlines rose 3% after Barclays upgraded American Airlines to equal weight from underweight with a price target of $16, up from $10, thefly.com reported.
Barclays sees airline fundamentals "turning sharply positive" in 2025, adding that the company's balance sheet leverage is fading, its business travel share has room to improve, and the carrier will renegotiate co-branded card agreements in 2025.
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Barclays also says American Airlines could regain lost market share after reversing prior commercial changes, capitalizing on a new co-branded card agreement, and benefiting from cost efficiencies now that labor contracts are settled.
Related: Veteran fund manager sees world of pain coming for stocks