Main U.S. indexes experienced a mix of movements on Tuesday amidst a blend of heightened tensions in the Middle East, increasing bond yields, and the release of first-quarter corporate earnings reports. Johnson & Johnson saw a 2% decline in its stock following disappointing revenue numbers due to lower-than-expected sales of its psoriasis drug Stelara. On the other hand, Morgan Stanley witnessed a 4% increase in its stock price after reporting a rise in profit attributed to a resurgence in investment banking activities. UnitedHealth’s stock rose by 6% despite disclosing potential profit impacts from a cyber attack at its Change Healthcare unit.
Bank of America faced a 4% drop in its stock value despite recording a significant revenue increase in investment banking, which partly offset the expected decline in interest payments. BNY Mellon also experienced a 3% decline in its stock price despite reporting a 5% rise in profits driven by higher investment services fees. Tesla witnessed a 2.3% decrease in its stock value as CEO Elon Musk announced layoffs amounting to over 10% of the global workforce due to declining sales and increasing competition in the electric vehicle market. Additionally, AMD saw a 1% increase in its stock price after analysts upgraded their outlook on the chipmaker to a ‘buy’ rating, citing a sufficient artificial intelligence market potential.
PNC Financial Services Group faced a 1.3% decline in its stock value following a 21% drop in first-quarter profit linked to lower interest income amidst a high-rate deposit environment. Ericsson’s ADRs went up by 2.5% after the company reported stronger-than-expected profits for the first quarter. Trump Media & Technology witnessed a 10% decline in its stock despite announcing plans for a phased rollout of a live TV streaming platform. Intra-Cellular Therapies, a biopharmaceutical company, saw a 24% increase in its stock value after positive results from a study on a therapy for major depressive disorder. Live Nation Entertainment experienced a 6% decline following reports of an upcoming antitrust lawsuit by the DOJ related to anti-competitive practices.