Stocks making the biggest moves midday: Morgan Stanley, Bank of America, Charles Schwab and more

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Pedestrians walk by a sign posted outside of a Charles Schwab office on April 17, 2023 in San Francisco, California.
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Check out the companies making headlines in midday trading.

Morgan Stanley — Shares of the James Gorman-led bank jumped more than 6% after the firm posted second-quarter earnings and revenue that topped analysts’ expectations. The results were helped by Morgan Stanley’s record revenue from wealth management.

Bank of America – Bank of America shares rose nearly 4% after the company reported second-quarter financial results. Earnings came in at 88 cents a share, although analysts estimated a profit of 84 cents per share, according to a Refinitiv estimate. The bank posted revenue of $25.33 billion fueled by a 14% jump in net interest income amid higher rates. Analysts anticipated revenue of $25.05 billion.

Charles Schwab — The brokerage stock popped 12% after reporting stronger-than-expected results for the second quarter. Charles Schwab reported adjusted earnings of 75 cents per share on $4.66 billion in revenue. Analysts surveyed by Refinitiv had expected EPS of 71 cents on $4.61 billion in revenue.

Microsoft — Microsoft shares jumped 4% in midday trading. The software giant announced pricing for its AI Copilot tool. Microsoft also announced an expanded partnership with Meta Platforms to make the social media company’s open source large language model available on Azure and Windows.

Regional bank stocks — Regional bank stocks gained on Tuesday on the heels of a fresh batch of bank results, lifting the SPDR S&P Regional Banking ETF (KRE) more than 3%. Western Alliance popped nearly 8% ahead of earnings after the bell. PacWest was up 9%, while FB Financial gained more than 6% and Zions Bancorporation rose about 3%.

UnitedHealth — The health-insurance stock gained 3.7% after being upgraded to outperform from market perform by Bernstein. The firm said UnitedHealth is a “best-in-class” managed-care and value-based-care company with an attractive valuation and “large runway of growth.”

Verizon, AT&T — Verizon and AT&T rose about 5% and 1%, respectively, reversing the recent downtrend in shares following a report that linked the companies to lead-encased cables and concerns from analysts.

Bank of New York Mellon — Shares rose more than 4% after Bank of New York Mellon reported second-quarter revenue and profit that beat Wall Street’s expectations.

Pinterest — Shares hit a high not seen since early 2022 intraday and were recently up about 2%. Evercore ISI said improving advertising trends are creating an inflection point for the stock.

PNC Financial — Shares gained 2.6% after PNC Financial reported second-quarter earnings that topped Wall Street’s earnings expectations but came in slightly short on revenue. The financial services company reported earnings of $3.36 per share on revenue of $5.29 billion.

Prologis — The logistics real estate stock lost nearly 4% after posting second-quarter results that fell short of Refinitiv revenue estimates. Prologis reported net income of $1.31 a share and rental revenue of $1.65 billion.

Novartis — U.S.-listed shares of Novartis jumped as much as 5% in trading. The Swiss pharmaceutical firm reported second-quarter earnings that topped estimates, according to StreetAccount. Novartis posted core earnings of $1.83 per share, better than the $1.70 estimate. It posted revenue of $13.62 billion, more than the consensus $13.23 billion. The company raised its full-year forecast. Its board of directors also approved a separation from its Sandoz division.

Masimo — Shares tumbled 20% after Masimo preannounced second-quarter revenue that was weaker than consensus expectations, and lowered its full-year guidance. The medical device maker said in its guidance that second-quarter revenue would come in at $453 million to $457 million, lower than expectations of $553.3 million, according to consensus estimates from FactSet. Stifel downgraded the stock to hold from buy after the preannouncement, according to StreetAccount.

Lockheed Martin – The aerospace company gave back earlier gains that followed the release of its latest financial update. Lockheed Martin reported earnings of $6.73 that beat expectations of $6.45, according to FactSet, and revenue of $16.69 billion, compared to expectations of $15.92 billion. The stock jumped at the open and was last trading flat.

— CNBC’s Tanaya Macheel, Sarah Min, Yun Li, Alex Harring and Michelle Fox contributed reporting

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