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Stocks mixed after record highs. Movers: AT&T, Tesla, Intel, more
Stocks are trading mixed on the second trading day in December, following Monday's record highs for the S&P 500 and Nasdaq.
The S&P 500 ticked down 0.04%, while the tech-heavy Nasdaq Composite added 0.14%. The Dow Jones Industrial Average dipped 0.17%. The Russell 2000 Index fell 0.8%.
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:
AT&T pops on optimistic outlook
AT&T shares surged 4% to a three-year high midday after the telecom-service giant outlined plans to boost earnings and cash flow while focusing on 5G and fiber network expansion.
The Dallas carrier aims to double its fiber network and expand its 5G coverage to 200 million homes, targeting 50 million fiber locations by 2029.
Financially, the company plans $22 billion in capital investments over the next three years and expects free cash flow to reach $18 billion by 2027.
Related: AT&T stock jumps as CEO Stankey defends dividend in new growth plan
AT&T also affirmed its commitment to its $1.11-per-share dividend and plans to return $40 billion to shareholders through dividends and buybacks by 2027. It raised the lower end of its 2024 profit forecast to $2.20 to $2.25 per share.
New Street upgraded AT&T to buy from neutral with a $32.50 price target, thefly.com reported. The investment firm noted that AT&T's guidance and strategic focus closely matched its recent report, adding that the guidance is generally better than expected.
Intel drops after CEO exits
Intel lost 5% midday after yesterday’s announcement of the retirement of CEO Pat Gelsinger. The company dipped 0.5% on Monday.
Reuters reported that the chipmaker was considering former board member Lip-Bu Tan as CEO. Tan joined Intel’s board in September 2022 and began overseeing manufacturing operations a year later.
Related: Pat Gelsinger: Intel CEO’s net worth & salary as he steps down
Oppenheimer said Gelsinger's successor would face structural headwinds, including lagging foundry technology, declining market share in central processing units, and missed opportunities in AI. Bank of America sees a greater possibility that Intel will consider separating its foundry business, thefly.com reported.
Tesla eases as judge affirms rejection of Musk pay package.
Tesla lost 2% after a Delaware judge affirmed the rejection of Elon Musk's record-breaking compensation package, valued at about $56 billion.
In January Chancellor Kathaleen McCormick invalidated the pay plan, citing Musk’s dominant control of Tesla and his influence on a board that didn’t fairly negotiate.
Tesla said on X that it planned to appeal the decision.
Wedbush analyst Dan Ives says "one way or another" Tesla's board will get Musk his pay package, according to thefly.com.
More Tesla:
The move would "secure Musk" as CEO of Tesla "at least through 2030," the analyst said.
Wedbush says Tesla could ultimately win the fight. The firm has an outperform rating on Tesla shares with a price target of $400.
Related: Veteran fund manager sees world of pain coming for stocks