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    Stocks making the biggest moves premarket: Dell, MongoDB, Lululemon and more

    A Dell Technologies flag outside the company headquarters in Round Rock, Texas, US, on Monday, Feb. 6, 2023.
    Jordan Vonderhaar | Bloomberg | Getty Images

    Check out the companies making headlines before the bell:
    Dell Technologies — Dell Technologies surged 10.5% after exceeding analysts’ second-quarter expectations. The computer company reported adjusted per-share earnings of $1.74 and revenue of $22.93 billion. Analysts polled by Refinitiv anticipated per-share earnings of $1.14 and $20.85 billion. Morgan Stanley named Dell a top pick in IT hardware.

    MongoDB — MongoDB advanced 5% after topping Wall Street expectations in its latest quarter. The database software maker posted adjusted earnings of 93 cents per share on revenue totaling $423.8 million for the second quarter. Those results topped expectations of 46 cents earnings per share and $393 million in revenue, according to a consensus estimate from Refinitiv.
    Lululemon Athletica — Shares added 2.3% in premarket trading after the athletic apparel retailer reported an earnings beat. Earnings per share for its second fiscal quarter came in at $2.68, topping the Refinitiv consensus estimate of $2.54. Revenue was $2.21 billion, versus the $2.17 expected. Lululemon also upped its guidance for the year.
    Walgreens Boots Alliance — The drugstore chain rose by 0.4% in early trading. Walgreens said Friday that Roz Brewer had stepped down as the company’s chief executive and left the board. 
    Vale — The metals and mining stock rose nearly 2% after JPMorgan upgraded Vale to overweight from neutral, saying that shares look too cheap too ignore after recent pullback, valuation reset.
    VMware — The cloud services company slid 1.9% before the bell. VMware gave a mixed second-quarter report on Thursday, beating expectations for earnings per share while missing on revenue. The company also said it entered a definitive agreement to be acquired by Broadcom.

    Broadcom — Shares of the chipmaker fell 4% despite Broadcom’s fiscal third-quarter results beating expectations. The semiconductor company generated $10.54 in adjusted earnings per share on $8.88 billion of revenue. Analysts surveyed by Refinitiv were expecting $10.42 per share on $8.86 billion of revenue. Fourth-quarter revenue guidance of $9.27 billion was roughly in line with estimates.
    — CNBC’s Michelle Fox, Alex Harring, Jesse Pound and Samantha Subin contributed reporting More

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    Robotics giant ABB ‘pretty pessimistic’ on China: ‘It will be challenging for the rest of the year’

    “China is not really developing as we hoped in the beginning of the year,” said ABB’s Bjorn Rosengren, citing softness in China’s real estate sector as driving factor.
    The Chinese real estate industry has been in a state of turmoil for the last three years, most notably marked by the financial woes of heavily indebted property developer Evergrande.
    China, a powerhouse of manufacturing often referred as “the world’s factory” due to its influence on global trade, is ABB’s second-biggest market.

    The CEO of Swedish-Swiss multinational robotics firm ABB said he has been “disappointed” by the state of the Chinese market, adding he expects conditions will prove challenging for the rest of the year.
    “China is not really developing as we hoped in the beginning of the year,” said Bjorn Rosengren, CEO and chairman of ABB, speaking with CNBC’s Joumanna Bercetche on Wednesday, adding ABB has been impacted by a “softening” in China’s property sector.

    Rosengren said that a decline in Chinese real estate development and hefty debts faced by the sector have meant pain for its residential construction segment, which is more cyclical and therefore prone to changes in the economy.
    “We are pretty pessimistic at the moment” on China, said Rosengren. “We thought in the beginning of the year that we should see some recovery from the Covid period, but I think everybody has been pretty disappointed.”
    “China continues to be pretty soft. It’s a big market though, so it’s not dead. It’s still living there, but not really developing as we’d hoped. I think it will be challenging for the rest of the year.”
    ABB is one of the largest companies globally operating in the realm of industrial manufacturing. With its machines embedded in so many major global companies’ factories, the company’s performance serves as something of a barometer for the health of the manufacturing sector — and the broader economy.
    Notably, China, a powerhouse of manufacturing often referred to as “the world’s factory” due to the country’s influence on global trade, is the company’s second-biggest market.

    ABB says it’s the leading robotics player in the Chinese market, accounting for more than 90% of sales from locally-made products, solutions and services there.
    But it has been showing signs of weakness.
    In the second quarter of 2023, ABB reported a 2% increase in orders on a comparable basis, to $8.7 billion. Comparable revenues were up 17%, to $8.2 billion. Income from operations, meanwhile, climbed 15.9%, to $1.3 billion. However, in China, the firm saw its order intake decline 9% on a comparable basis in the period.

    More than 50 Chinese property developers have defaulted or failed to make payments in the last three years, according to credit ratings agency Standard and Poor’s.
    In July, Fitch Ratings pulled its credit ratings for Central China Real Estate Limited, a Hong Kong-based investment holding company primarily engaged in property businesses.
    More recently, economists have flagged concerns with structural issues in China’s economy, such as debt, an aging population and young people unable to find work, and a growing fear of a “decoupling” from the rest of the world as tensions with the United States reach boiling point.
    The Chinese real estate sector has been in a state of turmoil over the last two years, most notably marked by the financial woes of heavily indebted property developer Evergrande, which earlier this month filed for U.S. bankruptcy protection.
    On Monday, Evergrande’s shares lost as much as 87% of their value after the company resumed trading for the first time since March 21, 2022. The shares have struggled to recover since.

    A silver lining?

    Rosengren said that, despite the weakness it is seeing in China, electric mobility is proving a fast-growing area for the company globally — especially in China.
    “One of the positive things is EV vehicles, which also are getting a position globally as you’ve seen also in Europe today, Chinese cars from that perspective,” said Rosengren.
    “I think that’s one of the sectors which has been good, which had some positive for the robotics market. But I think actually the real estate construction part which is low and has been low for quite some time.”
    ABB is currently planning an initial public offering for the e-mobility business, which in raised 325 million Swiss francs ($370.6 million) from investors in a pre-IPO placement.
    Rosengren said that most businesses and governments are “aligned” on the need to push toward a green energy future, so the ceiling for growth remains high.
    In Europe, especially, greater impetus has been placed on the need to accelerate the energy transition due to Russia’s invasion of Ukraine and resulting restrictions of natural gas supplies to the continent.
    “Energy generation is of course one of the sectors that needs to go green,” Rosengren said.
    “You also need to build up infrastructure, electrification infrastructure globally. And I think that is what we are feeling today and that’s what we are seeing and that’s why we see still very strong market in electrification and that’s why that is important.”
    ABB has an e-mobility division responsible for developing electric charging solutions, which are the backbone of the EV industry.
    Still, this part of the business has proven challenging as macroeconomic conditions have deteriorated.
    In the second quarter, ABB’s e-mobility unit lost $67 million, which the company attributed to “inventory related provisions as well as technology investments triggered by a shift back to a more focused product strategy to secure a continued leading market position.” More

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    UAW president says union has filed unfair labor practice charges against GM, Stellantis over contract talks

    The United Auto Workers union has filed unfair labor practice charges against automakers General Motors and Stellantis to the National Labor Relations Board.
    The Thursday filings followed the companies not responding to the union’s demands in a timely matter.
    The union did not file a complaint against Ford Motor, as UAW President Shawn Fain said the company responded to the UAW’s demands with a counterproposal he heavily criticized.

    UAW President Shawn Fain addresses union members during a Solidarity Sunday rally in Warren, Michigan, Aug. 20, 2023
    Michael Wayland / CNBC

    DETROIT — United Auto Workers has filed unfair labor practice charges against automakers General Motors and Stellantis to the National Labor Relations Board for not bargaining with the union in good faith or a timely manner, UAW President Shawn Fain said Thursday night.
    The Thursday filings followed the companies not responding to the union’s demands in a timely matter, Fain said. The union did not file a complaint against Ford Motor, as Fain said the company responded to the UAW’s demands with a counterproposal he heavily criticized.

    “GM and Stellantis’ willful refusal to bargain in good faith is not only insulting and counterproductive, it’s also illegal,” Fain said during a Facebook Live. “That’s why today, our union filed unfair labor practice charges, or ULPs, against both GM and Stellantis with the National Labor Relations Board.”
    Stellantis said it has not yet received the NLRB complaint, “but is shocked by Mr. Fain’s claims that we have not bargained in good faith.”
    “This is a claim with no basis in fact, and we are disappointed to learn that Mr. Fain is more focused on filing frivolous legal charges than on actual bargaining,” the company said in an emailed statement. “We will vigorously defend this charge when the time comes, but right now we are more focused on continuing to bargain in good faith for a new agreement. We will not allow Mr. Fain’s tactics to distract us from that important work to secure the future for our employees.”

    GM’s statement echoed Stellantis’ regarding the NLRB charges: “We are surprised by and strongly refute the NLRB charge filed by the International UAW. We believe it has no merit and is an insult to the bargaining committees. We have been hyper-focused on negotiating directly and in good faith with the UAW and are making progress,” said Gerald Johnson, GM executive vice president of global manufacturing.
    The NLRB also did not immediately respond regarding additional details of the filings.

    Regarding Ford’s recent proposal, Fain called it “concessionary.” He said it included a 9% wage increase over the four-year term of the deal, one-time lump sum bonuses and unlimited use of temporary workers who are paid less and don’t have the same benefits. The company also rejected “all of” the union’s job security proposals and “quality of life proposals” such as additional paid holidays and a shorter work week, Fain said.
    “Ford’s wage proposals not only failed to meet our needs, it insults our very worth,” Fain said.
    In response to the comments, Ford released a lengthy statement by CEO Jim Farley and additional details of its proposal compared with the prior negotiations four years ago, including 15% guaranteed combined wage increases and lump sum payments.
    “This would be an important deal for our workers, and it would allow for the continuation of Ford’s unique position as the most American automaker — and give us the flexibility we need within our manufacturing footprint to respond to customer demand as the industry transforms,” Farley said in the publicly released statement. “This offer would also allow Ford to compete, invest in new products, grow and share that future success with our employees through profit sharing.”
    Ford noted that its proposal includes a six-year grow-in period to top wages compared to eight years; $12,000 “cost-of-living” bonuses over the span of the deal; $5,500 ratification bonuses; 25% increase in base wages for temporary workers; and other improvements over the last contract but not in line with the union’s previous demands.
    The union’s demands have included a 46% wage increase, restoration of traditional pensions, cost-of-living increases, reducing the workweek to 32 hours from 40 and increasing retiree benefits. More

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    Stocks making the biggest moves after hours: Dell, Lululemon and MongoDB

    Ralph Orlowski | Getty Images

    Check out the companies making headlines after hours.
    MongoDB — Shares of the database software maker gained 5% in extended trading. MongoDB reported earnings of 93 cents per share, excluding items, on revenue totaling $423.8 million in the second quarter. That came in ahead of the earnings per share of 46 cents and $393 million in revenue expected by analysts polled by Refinitiv. 

    Dell Technologies — Dell popped 7.7% after reporting second-quarter earnings that surpassed Wall Street’s expectations. The technology company reported earnings per share of $1.74, excluding items, and $22.93 billion in revenue, while analysts polled by Refinitiv expected earnings per share of $1.14 and $20.85 billion.
    Broadcom — Shares of the semiconductor manufacturing company fell 4% after the company posted soft fiscal fourth-quarter guidance. The semiconductor company called for fourth-quarter revenue of $9.27 billion, while analysts polled by Refinitiv anticipated $9.275 billion.
    VMware — The cloud services stock edged down 1.7%. VMware posted mixed earnings, coming out at earnings of $1.83 per share, excluding items, on revenue of $3.41 billion. Meanwhile, analysts polled by Refinitiv expected $1.71 in earnings per share and $3.46 billion in revenue.
    Lululemon Athletica — Shares of the athletic apparel retailer gained nearly 2% Thursday after it reported sales and profits that beat Wall Street’s estimates. The company reported earnings per share of $2.68 and $2.21 billion in revenue for its fiscal second quarter, while analysts polled by Refinitiv expected $2.54 in earnings per share and $2.17 billion in revenue. Lululemon also said it now expects sales of $9.51 billion to $9.57 billion for the fiscal year. More

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    Lululemon ups guidance after ‘strong’ growth in China boosts quarterly sales

    Lululemon’s winning streak continued Thursday after it reported sales and profits that beat Wall Street’s estimates.
    The athletic apparel retailer, known for its yoga pants and sporty purses, now expects sales of $9.51 billion to $9.57 billion for the fiscal year.
    Sales were fueled by strong growth internationally, including a 61% boost in China.

    A customer enters a Lululemon store on June 02, 2023 in Corte Madera, California.
    Justin Sullivan | Getty Images

    Lululemon raised its full-year guidance Thursday after reporting an 18% jump in both sales and profit for its fiscal second quarter, boosted by a 61% revenue spike in China.
    The athletic apparel retailer now expects sales to be between $9.51 billion and $9.57 billion for the fiscal year, compared to a previous range of $9.44 billion to $9.51 billion.

    Lululemon is expecting profits to be between $12.02 to $12.17 per share for the year, compared to a previous range of $11.74 to $11.94.
    For its current quarter, the retailer is forecasting earnings per share of $2.23 to $2.28 and sales of $2.17 billion to $2.19 billion, in line with analysts’ expectations, according to Refinitiv.
    Here’s how Lululemon did in its second fiscal quarter compared with what Wall Street was anticipating, based on a survey of analysts by Refinitiv:

    Earnings per share: $2.68 vs. $2.54 expected
    Revenue: $2.21 billion vs. $2.17 billion expected

    The company’s reported net income for the three-month period that ended July 30 was $341.6 million, or $2.68 per share, compared with $289.5 million, or $2.26 per share, a year earlier. 
    Sales rose to $2.21 billion, up about 18% from $1.87 billion a year earlier.

    The top and bottom line beats were fueled by strong growth internationally. The retailer saw sales jump 52% in markets outside of North America, boosted by a 61% increase in China. That’s up from 30% growth in the region in the prior-year quarter.
    Lululemon’s finance chief Meghan Frank said there was little volatility in the region during the quarter. She described the sales growth as “strong” and “healthy,” even as China’s economy slows with retail sales up just 2.5% year over year as of this July.
    CEO Calvin McDonald said both e-commerce and in-store sales are performing “incredibly well” in China.
    The retailer now has 107 stores in the country, and of the 35 it plans to open internationally during the current fiscal year, the majority will be in the region, McDonald said.
    Sales in North America were up 11%. Meanwhile same-store sales across the global business fell short of expectations: Comparable sales were up 11% in the quarter, compared to an estimate of up 12.1%, according to StreetAccount.
    Lululemon has undertaken an ambitious growth plan — its “Power of Three x2” strategy — that calls for sales to double to $12.5 billion by 2026 compared to 2021’s revenue of $6.25 billion. To get there, the retailer has been working to expand its brick-and-mortar footprint and double its men’s and direct-to-consumer revenue.
    Sales in the men’s category were up 15% during the quarter, and the retailer opened 10 new stores on a net basis, including its first in Thailand. By the end of the quarter, it had 672 stores globally.
    It’s also been working to address a persistent inventory glut, with year-over-year levels steadily coming down. During its second quarter, inventories were up 14% to $1.7 billion, compared with $1.5 billion in the year-ago quarter. The strong sales helped inventories move, as well as lower air freight costs, said Frank.
    While turnover rates are still a bit slower than historical levels, the company said it’s in a good position with both the currency and level of its inventories, she said.
    Direct to consumer revenue was up 15% but it was a smaller part of Lululemon’s overall channel mix in the quarter. Direct to consumer sales represented 40% of Lululemon’s overall sales, compared to 42% in the year ago period.
    Lululemon’s gross margin was largely in line with expectations at 58.8%, compared to the 58.5% analysts had expected, according to StreetAccount.
    Read the full earnings release here. More

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    Forget Exorswift: Taylor Swift Eras Tour concert film gets release date to itself as ‘Exorcist’ moves

    A concert film of Taylor Swift’s The Eras Tour is hitting movie theaters Friday, Oct. 13.
    That was going to be the same day as the next installment of the “The Exorcist” horror franchise, sparking the potential for a new Barbenheimer.
    But Universal moved “The Exorcist: Believer” release date to Oct. 6, hours after Swift’s announcement.

    The Eras Tour concert film will hit theaters in North America beginning Oct. 13.
    Hector Vivas/tas23 | Getty Images Entertainment | Getty Images

    Look what Taylor Swift made Universal do.
    A concert film of Swift’s The Eras Tour is hitting movie theaters Friday, Oct. 13. That was going to be the same day as the next installment of the “The Exorcist” horror franchise. Now the demonic possession film will be released Oct. 6, distributor Universal announced hours after Swift said when her movie would hit.

    Alas, the opportunity for a new Barbenheimer is lost. Earlier this summer, Warner Bros. Discovery’s “Barbie” and Universal’s “Oppenheimer” hit theaters on the same day, July 21, leading to a double-feature cultural event and driving massive box office sales.
    The makings for the next big crazy movie double feature were there. Soon after news broke about the Eras Tour movie release date, the #Exorswift hashtag started to catch on.
    Even Jason Blum, who leads Blumhouse, the studio that produced the new horror flick, endorsed the idea.
    Blum later tweeted, however, the hashtag #TaylorWins.
    “The Exorcist: Believer” takes place 50 years after the original film. The film stars Leslie Odom Jr. of “Hamilton” fame and Ellen Burstyn, who starred in the 1973 demonic possession classic.

    Missed opportunity?

    Based on the 1971 William Peter Blatty novel of the same name, “The Exorcist” is the second-highest grossing film of all time, when adjusted for inflation.
    Photo: Warner Bros.

    Could pop star royalty like Swift and two young girls possessed by the devil have had the same effect as Barbenheimer?
    “The Eras Tour has been the most meaningful, electric experience of my life so far and I’m overjoyed to tell you that it’ll be coming to the big screen soon,” Swift posted Thursday on X, the site formerly known as Twitter.
    Swift’s concert film documents the wildly popular tour that raked in millions and was on its way to hit a record-breaking $1 billion in sales earlier this summer.
    The film will play at the nation’s largest theater chains including AMC, Regal and Cinemark on weekends until Nov. 5. AMC shares fell more than 1% Thursday, while Cinemark’s rose more than 1%.
    Additionally, LOOK Cinemas, B&B Theatres, Malco Theatres, Marcus Theatres and Harkins Theatres, alongside other smaller chains will showcase the filmed concert.
    The film release comes at a time when Hollywood is grappling with dual labor strikes and the departure of films like Warner Bros. and Legendary Entertainment’s “Dune: Part II” from the 2023 film slate.
    “This was the biggest concert event of the year and so many Swifties have been unable to see her live,” said Karen Melton, vice president of marketing at Malco Theatres. “We’re excited to make this available to all her fans in our markets.”Malco owns dozens of theaters in Swift’s home state of Tennessee.
    Tickets for Swift’s Era Tours concert movie are selling fast and expectations are high for its debut weekend. As soon as tickets went on sale, fans encountered wait times and lags at both AMC Theatres’ website and app.

    Arrows pointing outwards

    “Thank you for your patience as we experience high traffic volume. We have proactively created this queue for all visitors,” a message on AMC’s site read. “When it is your turn, you will have 10 minutes to begin your TAYLOR SWIFT | THE ERAS TOUR Concert Film ticket purchase or other online visit.”
    Notably, AMC Stubs rewards members will not be able to apply the loyalty program’s perks to their purchase, meaning they will have to pay full price for tickets. AMC Stubs “A-List” is a monthly membership that gives users the ability to see three movies each week with no fees for reservations or upgrading to premium format screens.
    The movie theater company noted that more than three million fans attended the tour in the first leg of its U.S. run, shattering concert sales records.
    “It would be unwise to underestimate the power of Taylor Swift to draw legions of Swifties to the multiplex, but the release [could] also could draw new fans looking to get in on the Eras Tour experience,” said Paul Dergarabedian, senior media analyst at Comscore. “This could propel an unprecedented opening weekend that could perhaps top $100 million.”
    “The Exorcist: Believer” is expected to generate between $10 million and $20 million during its now-earlier opening weekend.
    Disclosure: Comcast is the parent company of NBCUniversal and CNBC. NBCUniversal is the distributor of “Oppenheimer” and “The Exorcist: Believer.” More

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    Hollywood studios should cut Netflix out of strike negotiations, Barry Diller says

    Media mogul Barry Diller called the writers and actors strikes “catastrophic” to the industry.
    He said the legacy studios should cut Netflix and other streamers out of the negotiations.
    “The strike does one thing, and one thing only, it strengthens Netflix,” Diller said on the podcast.

    Barry Diller
    Mike Newberg | CNBC

    Barry Diller is calling on the legacy Hollywood studios to end the dual writers and actors strikes, otherwise it’ll be “catastrophic” to the industry.
    The media mogul, speaking on the podcast “On with Kara Swisher,” said the strikes would only strengthen streaming giant Netflix during a tumultuous time for legacy media.

    “The strike does one thing, and one thing only, it strengthens Netflix and weakens the others,” said Diller, the chairman of IAC and Expedia, who once held top roles at Fox, Paramount and ABC Entertainment.
    He also advised studios to cut Netflix and other streamers out of the negoations with the unions.
    “They should certainly get out of the room with their deepest, fiercest and almost conclusive enemy, Netflix, and probably Apple and Amazon,” he said, noting their different business models. He said the legacy studios, actors and writers should be “natural allies” given their century of working together.
    The remarks echo comments Diller made earlier this summer on CBS’ “Face the Nation,” in which he said the strikes could cause a domino effect that could produce “an absolute collapse of an entire industry.”
    Writers Guild of America members have been striking for more than 100 days, while the actors’ union joined the picket lines in July, halting production of TV shows and movies.

    In recent weeks, the Alliance of Motion Picture and Television Producers has gone public with its latest contract proposal to the writers. It was quickly apparent talks between the studios and writers remain heated.
    “There was a very recent attempt to get it on track with the WGA, which I gather collapsed in the last couple of days,” Diller said on Swisher’s podcast, which was recorded in late August. He added it “looks bleak” that the strike could end by September.
    Representatives for SAG, WGA, AMPTP and Netflix didn’t immediately respond to a request for comment.
    Recent discussions with the writers union included a sit down with top media brass including Disney CEO Bob Iger, NBCUniversal film head Donna Langley, Netflix co-CEO Ted Sarandos and Warner Bros. Discovery CEO David Zaslav.
    In recent earnings calls, Netflix and its media peers have said they hoped to come to a resolution quickly with the writers and actors.
    Diller said for the “old majors” like Disney, Comcast’s NBCUniversal and Paramount Global, if the strikes last through the end of the year the lack of fresh content by the spring or summer of 2024 on their streaming services will lead to subscriber cancellations and revenue losses.
    “When they have to gear up to make more programming to get back subscribers, they won’t have the revenue base to be able to produce,” Diller told Swisher. “So that is kinda catastrophic.”
    He goes on to call Netflix “an evil genius” that was able to dominate and leave legacy media scrambling to notch profits on their streaming businesses.
    While making streaming a profitable business has been an ongoing focus for media companies, Diller said these companies should shift back to focusing on their broadcast and pay-TV networks. While cord-cutting of traditional pay-TV bundles continues to accelerate, the business still remains profitable.
    Diller said legacy media should take some of its “shows and creativity and build our networks back up. It’s there for the take.”
    Disclosure: Comcast owns NBCUniversal, the parent company of CNBC. NBCUniversal is a member of the Alliance of Motion Picture and Television Producers. More

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    Stocks making the biggest moves midday: Tilray, Salesforce, CrowdStrike, Dollar General and more

    Dry cannabis flowers inside the packaging room at the Aphria Inc. Diamond facility in Leamington, Ontario, Jan. 13, 2021.
    Anne Sakkab | Bloomberg | Getty Images

    Check out the companies making headlines in midday trading.
    Salesforce — The cloud software company saw its stock jump 3% after it announced quarterly results and guidance that surpassed Wall Street’s expectations. Salesforce delivered growth in all five of its product categories, and CEO Marc Benioff sees expansion ahead through artificial intelligence.

    CrowdStrike — The cybersecurity company jumped 9.3% after it not only beat analysts’ second-quarter expectations on the top and bottom lines late Wednesday, but also issued positive earnings and revenue guidance for the third quarter and full year.
    Dollar General — The discount retail chain plunged 12.2% Thursday after reporting second-quarter earnings per share of $2.13, which was lower than the StreetAccount consensus estimate of $2.47. Guidance for the second quarter and full year also disappointed.
    Cannabis stocks — Cannabis stocks popped a day after the U.S. Department of Health and Human Services recommended easing restrictions on marijuana and classifying it as a lower-risk drug. Canopy Growth, Tilray Brands and Cronos Group gained 25.8%, 11.3% and 9.6%, respectively.
    Ciena — The network equipment stock surged nearly 16% after topping Wall Street’s fiscal third-quarter earnings expectations on the top and bottom lines. Revenue rose 23% from a year ago and the company said it expects fiscal 2024 to be a growth year. Ciena also expects AI adoption to contribute to growth over the long run.
    Palantir Technologies — The data analytics stock dropped 8.3% following a downgrade from Morgan Stanley, which said difficulties monetizing artificial intelligence could drive the share price down more than 40%. The firm gave Palantir an underweight rating.

    Arista Networks — The networking equipment stock rose 4.4% after Citi upgraded Arista Networks to a buy rating, citing its long-term AI exposure.
    Okta — Okta shares surged 13.5% after the access management company topped analysts’ second-quarter earnings expectation and issued a strong full-year outlook. The company reported adjusted earnings of 31 cents per share, excluding items, on revenue totaling $556 million. That came in ahead of the earnings per share of 22 cents and $535 million in revenue expected by analysts polled by Refinitiv.
    Five Below — The discount retail stock slumped 6% on disappointing third-quarter guidance. For the current period, Five Below said it expects revenue to range between $715 million and $730 million, versus the $738 million expected by analysts polled by StreetAccount. Earnings per share estimates also came in below expectations.
    Shopify — Shares popped 10.8% after Shopify announced late Wednesday that its merchants on its e-commerce platform can use Amazon’s “Buy with Prime” option. The new Amazon app on Shopify’s ecosystem gives merchants access to benefits such as fast and free delivery outside of Prime.
    Signet Jewelers — The jewelry stock jumped 5% after Signet reported a stronger-than-expected second quarter. The company reported $1.55 in adjusted earnings per share on $1.61 billion of revenue. Analysts surveyed by StreetAccount were expecting $1.45 in earnings per share on $1.58 billion of revenue. The company also said it expected a multiyear rebound in engagements to start later this year.
    UBS — U.S.-listed shares rose 5.6% after the Switzerland-based bank topped profit expectations and announced a slew of job cuts as it integrates Credit Suisse following the recent takeover. Shares hit a multiyear high during Thursday’s session.
    Chewy — Chewy shares tumbled more than 12%. The pet food retailer topped expectations and posted surprise earnings of 4 cents per share, but said active users declined year over year. The company also indicated that customers are growing more cautious.
    Victoria’s Secret — The intimate apparel stock popped nearly 7% even after missing second-quarter earnings expectations on both the top and bottom lines. Victoria’s Secret also said it expects a wider-than-expected loss for the current quarter.
    UGI — UGI shares surged nearly 9% in midday trading. The natural gas and electric utility said Thursday that its board will be exploring strategic alternatives, including a review of UGI’s cost structure and capital allocation priorities.
    SkyWest — The regional airline jumped 8.9% following an upgrade to outperform from market perform by Raymond James. The firm said the company has an improved outlook for pilot hiring. 
    — CNBC’s Tanaya Macheel, Sarah Min, Yun Li, Alex Harring, Michelle Fox, Pia Singh and Jesse Pound contributed reporting. More