Stocks Inch Higher; FedEx, Rivian Surge
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Rivian Stock Soars After Securing $5B Investment From Volkswagen
36 minutes ago
Rivian (RIVN) shares soared 20% in intraday trading on Tuesday following news that German automaker Volkswagen (VWAGY) plans to invest $5 billion in the electric vehicle (EV) startup as part of a joint venture to create industry-leading vehicle software.
Volkswagen will make an initial $1 billion investment 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 associated zonal architecture to an even broader market through Volkswagen Group’s global reach, but this partnership also is expected to help secure our capital needs for substantial growth,” Rivian founder and CEO RJ Scaringe said in the statement.
The joint venture comes after Ford (F) exited its majority stake in the EV company last year, scrapping its initial plans to co-develop plug-in cars with Californian-based Rivian.
See here for more on price levels to watch in the days to come.
General Mills Slumps as Sales Drop Amid ‘Challenging Operating Environment’
1 hr 34 min ago
Shares of General Mills (GIS) slumped Wednesday after the consumer foods giant posted weaker-than-expected revenue and gave soft guidance on lower prices and volumes.
The maker of Cheerios cereal, Betty Crocker cake mixes, and Blue Buffalo pet food reported fiscal 2024 fourth-quarter sales of $4.71 billion, a 6.3% year-over-year decline and below the consensus estimate of $4.85 billion of analysts surveyed by Visible Alpha. Adjusted earnings per share (EPS) of $1.01 exceeded forecasts by 2 cents.
North American retail sales dipped 6.9% to $2.85 billion. Pet sales slid 8.1% to $602.1 million, while international sales tumbled 10.4% to $667.5 million. The only unit with positive growth was North American foodservice, which saw revenue rise 4.4% to $589 million.
Total volumes fell 2 percentage points as North American retail and pet volumes declined 6 and 7 percentage points, respectively.
Shares of General Mills were down more than 4% midday Wednesday, putting them in negative territory for the year.
FedEx Leads S&P 500 as Wall Street Cheers Cost Cuts
2 hr 28 min ago
FedEx (FDX) was the best-performing stock in the S&P 500 by a wide margin on Wednesday morning after the delivery and logistics company reported better-than-expected quarterly earnings after the bell Tuesday.
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, according to estimates compiled by Visible Alpha.
Net income came in at $1.47 billion, or $5.94 per diluted share, down from $1.54 billion, or $6.05 per share, in the same period a year prior, but surpassing analysts’ projections. Excluding one-time items, adjusted earnings increased nearly 10% to $5.41 per share.
“These results are unprecedented in this current environment, reflecting our continued execution of our DRIVE initiatives and our resolve to transform FedEx while we deliver…
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