December 6, 2023

Enrique Lores, CEO of Hewlett-Packard

Scott Mill | CNBC

Check out the companies making headlines ahead of Monday’s close.

Charles Schwab — Shares of Charles Schwab rose 3% on better-than-expected earnings. The company reported earnings of 93 cents a share, beating a Refinitiv forecast of 90 cents a share. Charles Schwab’s revenue of $5.12 billion was roughly in line with expectations. The brokerage has been under pressure since the collapse of Silicon Valley Bank as investors feared it could suffer a similar fate. To be sure, Charles Schwab has defended its financial position, pointing out that its loan-to-deposit ratio is low.

letter – Shares of Google parent company down 4% in early trade New York Times Samsung is discussing using Microsoft’s Bing as the default search engine on its devices, which would replace Google given its recent AI advancements, the report said. Citing internal sources, the report said Alphabet was informed of the discussions in March and that about $3 billion in annual revenue was at stake.

M&T Bank — Banks in the region rose 3 percent after companies released their latest quarterly numbers. M&T Bank reported adjusted earnings of $4.09 a share, above the $3.99 a share forecast by Refinitiv. The bank’s revenue of $2.41 billion was also ahead of the consensus estimate of $2.38 billion.

illuminator — The fiber optic maker edged higher after JPMorgan upgraded the stock to overweight from neutral. Lumentum’s current valuation reflects “more headwinds than reality,” the company said.

wolf speed — Shares fell 2.7% after JPMorgan downgraded the electronics company to neutral from overweight, saying it expects near-term “negative catalysts” to limit Wolfspeed’s revenue and gross margin in the coming quarters. The bank also slashed its price target on Wolfspeed to $65, suggesting a 15.6% upside for the stock since Friday’s close.

state street — Shares fell more than 10% after the financial services giant reported its latest quarterly results. State Street earned $1.52 per share on revenue of $3.1 billion. Analysts polled by Refinitiv expected earnings of $1.64 a share on revenue of $3.12 billion.

Hewlett-Packard, Dell — Hewlett-Packard shares rose 2.6 percent after JPMorgan upgraded the computer maker to overweight from neutral and said it expected the PC industry to upgrade in the second half of the year. JPMorgan also downgraded Dell to Neutral from Overweight, citing its preference for HP’s expected recovery as Dell’s PC division could be offset by other factors. Dell shares fell 2.5 percent before the open.

fox corp. – The $1.6 billion lawsuit against Fox News was postponed a day to Tuesday. Fox News also apologized to the Delaware judge presiding over Dominion Voting Systems’ defamation lawsuit for failing to properly define Rupert Murdoch’s official role at the company. The stock was flat but could change in regular trading.

Ollie’s Outlet — Discount retail rose 3% in premarket trading after JPMorgan upgraded the stock to neutral from overweight. The investment firm said in a note to clients that the downtrend in consumer transactions* could help Ollie’s meet its sales goals.

Merck, Prometheus Bioscience — Shares of Prometheus rose 69% as the company was set to be acquired by Merck & Co. in a $10.8 billion deal. The deal values ​​Prometheus stock at $200, a 75.4 percent premium to its closing price on Friday. Merck shares fell slightly.

— CNBC’s Sarah Min, Alex Harring, Jesse Pound and Tanaya Macheel contributed reporting.