Rivian shares rise after securing $5 billion investment from Volkswagen
25 minutes ago
Shares of Rivian ( RIVN ) surged 20% in intraday trading Tuesday following news that German automaker Volkswagen ( VWAGY ) plans to invest $5 billion in electric vehicle (EV) startups as part of a joint venture to created industry-leading vehicle software.
Volkswagen will make an initial investment of $1 billion in the EV maker and expects to inject another $4 billion into the company by 2026, the automakers said in a joint statement late Tuesday.
“Not only is this partnership expected to bring our software and connected zonal architecture to an even wider market through the global reach of the Volkswagen Group, but this partnership is also expected to help secure our capital needs for significant growth,” said Rivian founder and CEO RJ Scaringe. in the statement.
The joint venture comes after Ford ( F ) exited a majority stake in the EV company last year, abandoning its initial plans to co-develop plug-in cars with California-based Rivian.
See here for more on the price levels to see in the coming days.
-Timothy Smith
General Mills falls as sales fall amid ‘challenging operating environment’
1 hour and 22 minutes ago
Shares of General Mills ( GIS ) fell on Wednesday after the consumer foods giant posted weaker-than-expected earnings and gave soft guidance on lower prices and volumes.
The maker of Cheerios cereal, Betty Crocker candy mixes and Blue Buffalo pet food reported fiscal 2024 fourth-quarter sales of $4.71 billion, down 6.3% year-over-year and below the consensus estimate of $4.85 billion of analysts polled by Visible Alpha. . Adjusted earnings per share (EPS) of $1.01 beat estimates by 2 cents.
North American retail sales fell 6.9% to $2.85 billion. Pet sales fell 8.1% to $602.1 million, while international sales fell 10.4% to $667.5 million. The only unit with positive growth was North American foodservice, which saw revenue increase 4.4% to $589 million.
Total volumes fell 2 percentage points as North American retail and pet sales volumes declined 6 and 7 percentage points, respectively.
Shares of General Mills fell more than 4% midday Wednesday, putting them in negative territory for the year.
-Bill McColl
FedEx Leads S&P 500 With Cost Cut Wall Street Cheers
2 hours and 17 minutes ago
FedEx ( FDX ) was the best-performing stock in the S&P 500 by a wide margin Wednesday morning after the distribution and logistics company reported better-than-expected quarterly earnings after the bell on Tuesday.
According to estimates compiled by Visible Alpha, the company reported revenue of $22.1 billion for the fiscal fourth quarter of 2024, up from the year-ago period and slightly above analysts’ expectations.
Net income came in at $1.47 billion, or $5.94 per share, down from $1.54 billion, or $6.05 per share, in the year-ago period, but beating analysts’ forecasts. Excluding one-time items, adjusted earnings rose nearly 10% to $5.41 a share.
“These results are unprecedented in this current environment, reflecting our continued execution of our DRIVE initiatives and our determination to transform FedEx while providing exceptional service to our customers,” said Subramaniam. Fedex’s DRIVE program is focused on increasing profit while reducing costs.
FedEx shares rose more than 14% Wednesday morning to around $293, a nearly 3-year high.
– Naomi Buchanan
Stocks making the biggest moves in early trading
3 hours and 4 minutes ago
Earnings:
- Rivian (RIVN): Shares of Rivian surged over 29%, continuing a rally that began in extended trading on Tuesday after it announced it had secured a $5 billion investment from German auto giant Volkswagen.
- FedEx (FDX): The package shipping giant jumped more than 12% after reporting a rise in earnings in results released after the bell on Tuesday, with the company planning to cut costs to deal with reduced demand from the height of the pandemic .
- Vista Outdoor ( VSTO ): Shares of the company behind outdoor and firearms brands like Camelbak and Remington rose 9% on news that MNC Capital raised its takeover offer to $3.2 billion, fending off another bid from $2 billion Czechoslovak group for The Kinetic. Group, one of Vista’s subsidiaries.
Losses:
- General Mills ( GIS ): Shares of the snack and cereal giant fell more than 4% after releasing an earnings report with sales forecasts falling short of expectations.
- Sanofi ( SNY ): The French pharmaceutical giant fell 3% after reports emerged Tuesday that it is looking to sell or spin off its consumer health division that sells products like Icy Hot.
- Trump Media (DJT): Shares of the former president’s media company extended a volatile stretch, falling 2% Wednesday morning after gaining 8.5% on Tuesday ahead of the first presidential debate set for Thursday night.
Stock futures fall ahead of Nvidia shareholder meeting
3 hours and 55 minutes ago
Futures tied to the Dow Jones Industrial Average fell 0.2% in early trading on Wednesday.
S&P 500 futures fell 0.2%.
Nasdaq 100 futures also traded 0.2% lower.