Major shifts were observed in the stock market as several companies made significant moves midday, driven by varying industry dynamics and corporate announcements.
Freight stocks saw a notable sell-off following Amazon’s announcement that it would extend its less-than-truckload shipping services to entities outside its existing network. This initiative poses a potential threat to established players in the trucking industry. As a result, shares of FedEx Freight Holding and Old Dominion Freight Line each fell by 5%. Other companies like XPO, Saia, and ArcBest experienced declines of 4% and 3%, respectively. Meanwhile, Amazon itself saw a dip of 2%.
Super Micro Computer, a manufacturer of AI servers, faced a steep drop of 18% after revealing plans to raise $7 billion through new equity and equity-linked securities to finance hardware component purchases.
The semiconductor sector continued its downward trajectory, with Micron Technology down 4%, Advanced Micro Devices (AMD) falling nearly 5%, and Broadcom shedding 5% as well.
Conversely, Devon Energy experienced a rally of over 6%. This surge followed an upgrade from Evercore ISI, which rated the company as outperforming based on what it described as a “better-than-expected mid-month update.” The update coincided with Devon’s recent acquisition of Coterra Energy for approximately $58 billion.
Cracker Barrel, the Southern-themed restaurant chain, soared 24% after it raised its full-year revenue and adjusted EBITDA guidance. Its fiscal third-quarter earnings report showed a profit of 29 cents per share, exceeding analyst expectations which estimated a loss of 48 cents per share alongside revenue of $797.4 million.
Casey’s General Stores, a convenience store and gas station chain, surged 14% after posting much better-than-expected fiscal fourth-quarter results. The improved performance was attributed to rising fuel margins and strong sales in prepared foods and dispensed beverages, leading to an optimistic forecast of 8% to 10% growth in fiscal 2027 EBITDA.
In the gambling sector, DraftKings gained 5%, while Rush Street Interactive, Flutter Entertainment, and SGHC Ltd. added between 3% and 4%. DraftKings management expressed confidence at a Jefferies investor conference, indicating that the upcoming World Cup was expected to boost engagement and revenue.
Robinhood Markets also saw an increase of 5% as it reported a 9% rise in total platform assets for May compared to April, marking a significant 48% year-over-year increase. CEO Vlad Tenev announced that Robinhood had received regulatory approval to underwrite initial public offerings.
Oscar Health shares climbed 3% following an upgrade to overweight from Barclays, which indicated that the company had the potential for significant growth because of a margin recovery cycle.
Meanwhile, Cava, the fast-casual restaurant chain, was upgraded by UBS from hold to buy, resulting in a 6% increase in stock value driven by its compelling growth narrative.
On the downside, BILL Holdings, a cloud-based software provider, fell 4% to a 52-week low following a downgrade from Truist, which cut its 12-month price target from $45 to $38.
Lastly, gold miners also faced declines as futures contracts for gold dropped by 2%. Anglogold Ashanti tumbled nearly 6%, while Harmony Gold Mining and Gold Fields lost over 2% and 4%, respectively. Hecla Mining and NovaGold Resources also saw losses, decreasing by 2% and 3%.
