Closing Bell: Big Banks Gain, Lucid Plunges, IBM Drops | Stock Movers

[music] >> Bloomberg Audio Studios. Podcasts, radio news. >> This is the closing bell on the stock movers report. The [music] companies making moves at the close of US trading with Carol Masser, Tim Stenovec, [music] Romaine Bostick, and Katie Greifeld. >> Let's get to some of the individual gainers. I'm going to start with a bunch of the financial names cuz we definitely saw what? Five big banks reporting earnings. Three of them um rallying in today's session. Let's take a look at JP Morgan. It was up 2.5%. Goldman Sachs soaring today up 9%. BofA also moving to the upside just shy of 2% here at the close. I mean, Wall Street traders coming out on top as the biggest US banks reported record results from their equities divisions. JP Morgan Chase and Goldman achieving personal bests and new industry highs. We've seen the AI boom and constant repositioning by clients have driven the success of some of the biggest trading desks at some of these banks despite concerns about war and inflation. So, again, JP Morgan bagging its highest quarterly profit ever. Goldman Sachs trouncing its own Wall Street stock trading records. Um that stock as we just mentioned soaring. It's also looking to uh raise at least 8 billion from a high-grade bond sale. And BofA's stock traders notched a record during the second quarter benefiting from that market volatility. Its investment bankers too capitalizing on some deal making um resurgence. And then, I'm just going to go over to the chip makers. Um they give it, they take it away, they give it again. It's kind of our new favorite parlor game watching semiconductors. Um the socks today as a whole up about 2 and 1/2%. We had all 30 down um yesterday. I think we have 26 to the upside today in the index in the index. And then, I just want to mention uh AMD because some outperformance there up about 2 and 1/2%. Some street uh calls there. KeyBank Capital uh of their target on AMD to 725 from 530. Stock closing at 548 and change maintaining an overweight writing that strong AI data center demand is driving chip momentum. And so KeyBank expects AMD capacity next year to support unit growth of more than 50%. BofA also raising the firm's price target to 620 from 550 and keeping a buy rating on the shares. So the good stuff continues. There's also Bloomberg Intelligence out and just kind of being pretty upbeat about a lot of names in the chip space. >> Okay, those are the >> mentioned SK Hynix, too, Carol. A big rebound there in those ADRs up 27% at the close. >> Oh, how did I miss that one? >> I don't know. >> That was my gift to you, Romaine. >> I don't know. Tim don't miss anything. >> My gift to you >> [laughter] >> are some stocks that moved lower. Uh Lucid Group, the EV maker, only sells a few thousand cars a year as Ed Ludlow reminded us a little earlier today, down 16%. The company as Ed and David Welch report is working with restructuring advisers to turn around its struggling business. It's confirmed it's working with Alvarez & Marsal. The company has dismissed rumors though that it's considering bankruptcy as quote completely false and said it has sufficient liquidity to carry its operations well into next year. Look at that chart there if you're watching on TV. You can see shares fell uh very sharply just before 2:00 today, down as much as 57% before pairing declines to close 16%. Lower. >> like on a reef. Cliff diving. >> Yeah, I mean there are a lot of different images that that that that that shows. Um >> It's evocative. >> Once again, Lucid Group down more than 16%. Another company, Romaine, you mentioned this. Uh shares of software makers fell all thanks to what we heard from IBM early this morning. IBM shares, how's this for superlative? Falling the most going back to 19 at least 1968. Shares down about 25% throughout the day and and staying there. The company came out with preliminary second quarter sales that fell short of expectations. It said the miss is due to customers shifting their spending to chips and servers amid these AI fueled shortages. Arvin Krishna, the CEO, said the company failed to predict that its customers would shift their spending from IBM's products to server storage and memory purchases. >> I love the 1968 thing cuz that's basically as far back as the data go. After 1968 the Bloomberg terminal just breaks down. But I was looking it up. It's funny, I didn't realize they went public like in 1915 or something. >> when you were born? >> Yeah, yeah. Thank you, Carol Massar. But anyway, fun fact there. Tim Saavik, who I was speaking to. >> [laughter] >> All right, let's talk a little bit very briefly. Citi shares fell today. The company's plans to spend more on tech and AI could help whittle down head count in the second half of the year. Shares fell by 5.3% just one of the five big banks to report today. Carol mentioned some of the others. And finally, I want to end with Yum Brands. Shares fell after the Washington Post reported that federal and state health officials are investigating whether Taco Bell, it's owned by Yum Brands, whether those restaurants played a role in the recent US outbreak of gastro intestinal illness caused by a parasite that contaminates fresh produce. Separately, Taco Bell removed some ingredients at select restaurants as a precaution amid an outbreak of a parasite that causes severe diarrhea. Shares of Yum Brands down a little more than 2% today. >> All right, let's take take a quick look at yield. We talk about the volatility in equity markets. Well, we continue to see that volatility in the Treasury space as well. We saw the yield on the two-year go down about nine basis points here on the day. A bit of buying coming back in to the short end of the curve largely based on that relatively cool CPI report. >> This Stock [music] Movers Report from Bloomberg Radio. Check back with us throughout the day for the latest round [music] up of companies making news on Wall Street. And for the latest market moving headlines, listen to Bloomberg Radio [music] live. Catch us on YouTube, Bloomberg.com, and on Apple CarPlay and Android Auto with the [music] Bloomberg Business app.