Stocks across multiple sectors swung sharply in midday trading after a wave of company-specific earnings updates, upgrades and deal news. Abbott Laboratories, ManpowerGroup, UnitedHealth and Eli Lilly gained, while Cintas mixed higher on analyst action and several others—including AST SpaceMobile, Cinemark and Imax—declined on financing announcements or analyst downgrades.
Key takeaways
- Abbott and Manpower surged after raised full-year guidance and better-than-expected results, signaling improving earnings visibility.
- AST SpaceMobile plunged following plans for a $1 billion convertible notes offering, weighing on near-term financing sentiment.
- Movie theater stocks fell as Wells Fargo downgraded Cinemark and Imax to equal weight from overweight.
- UnitedHealth gained on stronger second-quarter performance and an increased full-year outlook.
- Acquisitions drove pharma action with AtaiBeckley jumping after Eli Lilly agreed to buy the company.
What drove the move
Guidance lifts and beat results supported health and industrial names. Abbott Laboratories climbed nearly 11% after raising its full-year range for adjusted earnings to between $5.45 and $5.60 per share, compared with its prior forecast of $5.38 to $5.58. FactSet consensus was $5.47 per share. ManpowerGroup surged about 33% after reporting second-quarter adjusted earnings of 99 cents per share on revenue of $4.9 billion—both ahead of Wall Street expectations—and raising third-quarter revenue growth expectations to 2% to 6%, versus a FactSet estimate of 1.7%. UnitedHealth also rose roughly 4% after delivering an adjusted $6.38 per share on revenue of $112.03 billion for the second quarter, beating LSEG expectations of $4.90 per share on revenue of $110.85 billion, and increasing its full-year earnings outlook.
Analyst changes shaped trading in uniform rental, aerospace defense and theaters. Cintas jumped about 6.5% after a Bank of America upgrade to buy from neutral, citing optimism around earnings setup and margin gains tied to supply chain and distribution efficiencies. In movie exhibition, Cinemark fell nearly 4% and Imax dropped about 2% after Wells Fargo downgraded both stocks to equal weight from overweight, arguing their risk-to-reward profiles are more balanced.
Financing and capital spending decisions influenced market pricing. AST SpaceMobile shares slid more than 16% after it announced plans to offer $1 billion of convertible senior notes due 2034 in a private offering. Separately, Taiwan Semiconductor Manufacturing declined about 2% despite a second-quarter earnings beat; investors focused on the company raising full-year capital expenditure guidance to between $60 billion and $64 billion from the prior range of $52 billion to $56 billion. TSMC also said it will invest an additional $100 billion in Arizona.
Deal activity, upgrades and earnings surprises
Pharma deal news propelled AtaiBeckley. AtaiBeckley jumped about 33% after Eli Lilly agreed to acquire the company for $2.8 billion. The offer values AtaiBeckley at $6.75 per share in cash, which is 26% higher than AtaiBeckley’s Wednesday close of $5.36 per share. The deal could include up to an additional $2.50 per share contingent on milestones tied to AtaiBeckley’s drugs. Eli Lilly shares rose more than 2%, while rival psychedelic drugmaker GH Research gained about 12% on the broader sector read-through.
Not all earnings beats translated into higher stock prices. GE Aerospace fell about 4% despite reporting second-quarter adjusted earnings of $2.02 per share on adjusted revenue of $12.63 billion, above LSEG’s expected $1.86 per share on $11.86 billion. The company also raised its full-year guidance, but the stock still traded lower, suggesting investors were more focused on other forward-looking factors than the topline and EPS beat alone.
Airline guidance tempered a post-earnings bounce. United Airlines shares declined more than 1% even as it topped earnings estimates. The company issued third-quarter guidance for earnings per share of $2.50 to $3.50, below FactSet’s $3.53 estimate. United also said it expects $6 billion in added fuel costs, a potential pressure point for margins.
Employment services and trucking saw upside from demand signals. J.B. Hunt Transport Services climbed nearly 7% after reporting second-quarter earnings per share of $1.91, above the FactSet consensus of $1.74. Revenue came in at $3.5 billion versus $3.26 billion expected, and management said intermodal demand increased throughout the quarter.
Defense and logistics-linked upgrades supported gains. AeroVironment rose about 4% after Raymond James upgraded the stock to outperform from market perform, noting recovering bookings and a backlog poised to grow.
Fintech optimism lifted Rocket Companies. Rocket Companies gained more than 1% after Morgan Stanley raised its price target to $19 and reiterated a buy rating, implying about 30% upside from Wednesday’s close.
Bigger picture for investors
Across the tape, price moves were driven less by broad market direction and more by how company-specific outlooks interact with investor expectations around growth and costs. Guidance raises—seen at Abbott, UnitedHealth and GE Aerospace—tended to support shares, while capital intensity or financing moves—highlighted by TSMC’s higher capex plan and AST SpaceMobile’s convertible notes offering—were met with caution. Analyst revisions also played a clear role, with upgrade momentum helping Cintas and AeroVironment, while downgrades pressured Cinemark and Imax.
Investors will likely watch whether raised outlooks translate into sustained revenue growth and margin improvement in upcoming reports, and whether higher capital spending pressures cash flow expectations. Additional earnings releases and the next round of macro data—along with any updates tied to the Federal Reserve’s policy path—could further influence how markets price growth stocks and rate-sensitive sectors.
