PRISM Market Momentum: Stocks on the Move on Wednesday; Lyft and Uber Soar on Strong Earnings, Instacart, Airbnb Slide

US equities are trading higher on Wednesday at midday after sharp selloff on Tuesday. Big tech is mostly higher, led by Nvidia ($NVDA). Outperformers include software, large-cap banks, , industrial metals, tobacco, MedTech, and homebuilders. Food, casual diners, IT services, discounters/dollar stores, and managed care are under pressure. Treasuries are firmer, the Dollar index is down (0.2%), Gold is down (0.3%), Bitcoin futures are up +5.4%, and WTI crude is flat.

Notable gainers at midday are Lyft ($LYFT) which has soared +32.3% after announcing strong Q4 results, beating adjusted EBITDA and bookings with revenue in-line. Kratos Defense & Security Solutions ($KTOS) is up +13.5% on beating Q4 EPS and revenue and with FY23 revenue and EBITDA largely in-line. Uber Technologies ($UBER) has risen +11.9% after guided gross bookings growth over the next three years in the mid to high teens and announcing its first-ever share repurchase authorization of $7 billion.

The day’s decliners are Instacart ($CART) which is down (8.7%) on mixed Q4 results. Analysts are concerned about a difficult competitive backdrop and lower take rate. MGM Resorts ($MGM) has fallen (7.0%) on missing Q4 EBITDA but beating revenue. The company reported its Las Vegas and Macau results both ahead, though regional property results came in weaker on headwinds from labor strikes. Kraft Heinz ($KHC) has lost (5.5%) on missing Q4 adjusted EBITDA and revenue, and Airbnb ($ABNB) is down (4.7%) in spite of beating Q4 EBITDA and revenue with bookings and margins both ahead of consensus. Analysts highlighted strong growth prospects, but moderating near-term demand.