PRISM Market Momentum: Stocks on the Move on Wednesday; CVS and Target Shine, Snap, Paramount Sink

US equities are trading mostly higher on Wednesday at midday after finishing mostly higher on Tuesday. Big tech stocks are broadly higher today with Tesla ($TSLA) the standout after some layoff speculation. Drug stores, exchanges, hospitals, energy, solar, restaurants, and homebuilders are also outperforming. Biotech, regional banks, tech hardware, apparel and media are lagging. Treasuries are mostly firmer, the Dollar index is down (0.1%), Gold is up +0.2%, Bitcoin futures are down (0.1%) and WTI crude is up +0.7%.

Notable gainers at midday are Chipotle Mexican Grill ($CMG) which has gained +9.2% on strong Q4 results ahead on key metrics, including +7.4% traffic growth. Analysts are positive about the company’s brand strength, execution, and loyalty program. CVS Health ($CVS) is up +2.6% on beating Q4 EPS and revenue, and raising FY24 revenue guidance. Target ($TGT) has risen +1.9% after Bloomberg reported the company is considering launching a membership program similar to that of Amazon Prime.

The day’s decliners are Snap ($SNAP) which has slumped (32.4%) after it announced Q4 earnings in line but light revenue, and Q1 sales guidance that is not as strong as expected. The company attributed some of the weakness to the war in the Middle East. Paramount Global ($PARA) is down (5.9%) after CNBC reported that Warner Bros. Discovery ($WBD) has ‘no real interest’ in acquiring Paramount Global. The company recently formed a committee to consider strategic alternatives, including a $13.3 billion offer by Allen Media Group. Alibaba Group ($BABA) is down (5.9%) on missing Q3 EPS, but announcing revenue mostly in line. The company approved an increase of $25 billion to its share repurchase program and beat sales consensus in Cloud Intelligence and Digital Media but missed in Core Commerce.