Stocks Slip at Midday as Chips Slide, Bumble Soars 56% on a Buyout and J&J Drops After Earnings
Bumble jumped 56% on a $1.3 billion take-private, Fermi surged, and big banks reported, while Micron, Applied Materials and other chip names fell and Johnson & Johnson and Six Flags dropped. Here is what moved at midday on Oct. 13 and why.
Stocks were mixed at midday on Tuesday, Oct. 13, as the first big bank earnings of the season landed and chip and memory names extended a slide. The S&P 500 was down about 0.1% at 12:11 p.m. ET, with roughly 60% of U.S. issues declining, according to TheStreet. The biggest single-stock move was Bumble, which jumped about 56% after agreeing to a $1.3 billion all-cash take-private. Below is what moved and why. All figures are midday and can change by the close.
Bumble soars on a $1.3 billion buyout
Bumble (BMBL) rose about 56% after agreeing to be acquired by Ithaca Holdings for $6.05 per share in cash, or about $1.3 billion. The price is a 122.4% premium to Bumble's close before reports of a sale exploration first emerged, per 24/7 Wall St. Ithaca co-founders Ravi Gupta and John Hegeman are set to become co-CEOs at closing, and Blackstone and founder Whitney Wolfe Herd have committed to the shareholder approval the deal needs. Bumble traded near $5.94 in the morning, below the offer price, which leaves a small spread until the deal closes. Rival Match Group (MTCH) rose about 2%.
Big banks report
| Company | Ticker | Midday move | Catalyst |
|---|---|---|---|
| JPMorgan Chase | JPM | Up about 1% | Net income $15.3B, EPS $5.57 vs. $5.90 expected; net revenue up 8% to $50.2B; raised net interest income outlook |
| Goldman Sachs | GS | Up about 1% | EPS $17.01 vs. $13.02 expected; revenue $18.68B vs. $16.71B consensus; equities revenue up 72% |
| Wells Fargo | WFC | Move not available | EPS $1.87 beat; revenue of $21.87B missed estimates |
JPMorgan missed on earnings per share but lifted its net interest income outlook, which is the line investors tend to watch. Goldman's trading desk drove its beat, with equities revenue up 72% to $6.44 billion, per TheStreet. Wells Fargo beat on earnings per share but missed on revenue. Move sizes for JPMorgan and Goldman are approximate midday readings.
Chips, memory and AI infrastructure
| Company | Ticker | Midday move | Catalyst |
|---|---|---|---|
| Applied Materials | AMAT | -6% | Chip equipment weakness |
| Lam Research | LRCX | -3%+ | Chip equipment weakness |
| Teradyne | TER | -3%+ | Semiconductor test, sector selling |
| Lumentum | LITE | -2%+ | AI optical names lower |
| Micron | MU | -4.9% | CXMT competition worries |
| SK Hynix ADR | SKHY | -4% | CXMT competition worries |
| SanDisk | SNDK | -2.7% | Memory and storage selling |
| Seagate / Western Digital | STX, WDC | About -2% | Memory and storage selling |
Memory names stayed under pressure after China's ChangXin Memory Technologies (CXMT) flagged progress on a denser DRAM design, which we covered here. Broadcom CEO Hock Tan's comments that investors "have no clue" what they are investing in were also cited in chip weakness, per TheStreet.
Fermi (FRMI) bucked the trend, rising about 17%, on reported credit support from AMD for its Project Matador data center campus, described as up to 650 megawatts. We could not confirm the terms of that agreement from primary sources at the time of writing, so treat the details as reported rather than verified.
AI launches: Apple and Meta
| Company | Ticker | Midday move | Catalyst |
|---|---|---|---|
| Apple | AAPL | +1% | HomeView home hub launch |
| Meta Platforms | META | +2% | Muse Wonder AI models; Truist raised its price target to $1,000 from $763 |
Meta has been rising since it unveiled its Muse Wonder models, and Truist's price-target increase added to the gains. We covered the launch here.
Healthcare and consumer movers
| Company | Ticker | Midday move | Catalyst |
|---|---|---|---|
| Johnson & Johnson | JNJ | -6%+ | MedTech revenue $8.64B vs. $8.74B expected; company raised full-year guidance |
| Syndax Pharmaceuticals | SNDX | -16% | Phase 2 trial missed its primary endpoint in idiopathic pulmonary fibrosis |
| Six Flags | FUN | -16% | Fatal roller coaster incident at its Georgia park |
| Domino's Pizza | DPZ | -3% | U.S. same-store sales up 0.3%, in line with expectations |
| UnitedHealth Group | UNH | Under +1% | Q3 adjusted EPS $4.69 vs. $4.14; revenue $112.69B vs. $111.40B |
J&J's medical device segment came in just under forecasts, and a charge tied to a proposed talc litigation resolution weighed on reported profit, per TheStreet, even as the company raised its full-year sales and adjusted earnings outlook. Six Flags fell after a rider died on its Goliath roller coaster in Georgia, per CNBC and Yahoo Finance, and the stock extended its slide as police released details. UnitedHealth beat on both lines and raised its profit outlook, though its early gains had narrowed at midday.
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