Alphabet, Starbucks down; Kellanova up - Midday stock movers
The stock market is seeing a modest uptick after the release of US inflation data.
The Consumer Price Index (CPI) for July came in at an annual rate of 2.9%, down from 3% in June and marking the lowest rate since March 2021. Monthly prices increased by 0.2%.
Yesterday’s Producer Price Index (PPI), which increased by 0.1% in July versus the anticipated 0.2%, also suggested cooling inflation.
The S&P 500 is up 0.4%, and the tech-heavy Nasdaq Composite added 0.2%. The Dow Jones Industrial Average gained 0.7%. The Russell 2000 Index lost 0.2%.
Related: CPI inflation report upsets betting on big Federal Reserve rate cut
Trending stocks: Alphabet stock tumbled 3% after Bloomberg reported a potential break-up. Tesla stock dropped 2.9%. Nvidia added 1% and is now trading around $117.
Amazon, Apple, Microsoft, and Meta are experiencing modest gains of less than 1%.
Starbucks dipped 4% after yesterday's CEO replacement led to a 24% spike. Chipotle is down 0.2% at midday. Home Depot rose again following a strong earnings report from yesterday, up 2%.
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S&P 500 big stock movers today
Five S&P 500 stocks making big midday moves are:
Kellanova (K) +7.6%
Cardinal Health Inc (CAH) +5.0%
Allstate Corp (ALL) +4.9%
Progressive Corp (PGR) +4.7%
Charles Schwab Corp (SCHW) +4.3%
The worst-performing five S&P 500 stocks with the largest midday drop are:
Albemarle Corp (ALB) -5.7%
Starbucks Corp (SBUX) -4.1%
Viatris Inc (VTRS) -2.9%
ETSY Inc (ETSY) -2.7%
Alphabet Class A (GOOGL) -2.6%
Stocks also worth noting with significant moves include:
Alphabet slides after potential break-up
Alphabet’s stock tumbled 3% after Bloomberg reported that the DOJ was considering breaking up the company’s Google.
Related: Analysts review Apple stock price hit from Google antitrust ruling
The source told Bloomberg that the Android operating system and web browser Chrome would be the most likely units for divestment.
Justice Department attorneys have expressed concerns that Google’s search dominance provides it with advantages in developing artificial intelligence technology, according to Bloomberg.
The government may seek to prevent Google from requiring websites to allow their content to be used for AI products.
Kellanova surged on Mars acquisition
Kellanova stock popped 8% after Pringles maker agreed to be acquired by Mars for $83.50 per share in cash or a total consideration of $35.9 billion, one of the biggest deals in the packaged food sector.
Related: Mars to buy Pringles-maker Kellanova in $36 billion deal
Packaged food giant Mars is known for its candy brands M&M's and Snickers, and Kellanova is the maker of Cheez-It and Pringles.
On August 5, Reuters reported the potential acquisition without confirmation from Kellanova. Kellanova stock soared 16% that day.
Stifel analyst Matthew Smith commented earlier this month that the acquisition would "further validate the power of Kellanova's brands and growth potential, both in North America and internationally."
Cardinal Health jump after earnings beat
Cardinal Health added 5% midday after the healthcare company reported upbeat fiscal fourth-quarter results.
Related: Stock Market Today: Stocks higher as CPI inflation report tests Fed rate bets
The company earned $1.84 per share in the quarter, beating the expected $1.73. Revenue of $59.87 billion was up 12% and surpassed analysts’ $58.64 billion forecast. For the whole fiscal year 2024, the company’s revenue reached $226.8 billion, up 11% from a year ago.
More Health Care:
Average Americans on Medicare worry about benefits cuts in 2025
UnitedHealth stock higher despite medical costs, cyberattack hit to profit
Analysts revise TransMedics stock price target after earnings
The company also raised its full-year 2025 guidance for earnings per share to $7.7 per share from $7.55.
“We delivered robust cash flow generation, continued profit growth in the Pharmaceutical and Specialty Solutions segment, and significant improvement driven by our GMPD Improvement Plan,” CEO Jason Hollar said in a press release.
Related: Veteran fund manager sees world of pain coming for stocks