Top Midday Stories: Tesla, Boston Scientific Shares Jump Post-Earnings; Major Airline Stocks Down on New DOT Rules; B. Riley Finally Submits 10-K, Sends Stock Soaring

The Nasdaq Composite index was up in late-morning trading thanks in part to Tesla (TSLA), which climbed more than 11% after the company announced a recommitment to affordable electric vehicle models. The other two major market indexes were down in late-morning trading.

In company news, Boeing (BA) reported a Q1 non-GAAP loss Wednesday of $1.13 per diluted share, improving on a loss of $1.27 a year earlier and beating the forecast from analysts polled by Capital IQ of a loss of $1.43. Revenue for the first quarter was $16.57 billion, below the prior-year figure of $17.92 billion and the Capital IQ consensus analyst estimate of $17.22 billion. Shares of Boeing were down 0.9%.

AT&T (T) reported Q1 adjusted earnings Wednesday of $0.55 per diluted share, down from $0.60 a year earlier but above the estimate from analysts surveyed by Capital IQ of $0.53. First-quarter revenue was $30.03 billion, down from $30.14 billion in the first quarter of 2023 and below the Capital IQ consensus estimate of $30.53 billion. The company reiterated its full-year 2024 guidance for adjusted EPS of between $2.15 and $2.25. Analysts polled by Capital IQ expect EPS of $2.20. AT&T shares were roughly flat.

Thermo Fisher Scientific (TMO) reported fiscal Q1 earnings Wednesday of $5.11 per diluted share, up from $5.03 in the prior-year period and above the Capital IQ analyst consensus estimate of $4.71. Revenue for the most-recent quarter was $10.34 billion, down from $10.71 billion a year earlier but above the Capital IQ consensus forecast of $10.18 billion. The company said it now expects fiscal 2024 adjusted EPS to be in a range of $21.14 to $22.02, up from its prior guidance of $20.95 to $22.00. Analysts polled by Capital IQ are looking for $21.54. Fiscal year 2024 revenue is projected to be between $42.3 billion and $43.3 billion, compared to previous guidance for a range of $42.1 billion to $43.3 billion. Analysts polled by Capital IQ expect full-year revenue of $42.99 billion. Shares of TMO were down 1.2%.

Boston Scientific (BSX) reported adjusted Q1 earnings Wednesday of $0.56 per diluted share, up from $0.47 a year earlier and above the Capital IQ consensus analyst estimate of $0.51. Net sales for the first quarter were $3.86 billion, up from $3.39 billion in the 2023 first quarter and above the Capital IQ consensus estimate of $3.68 billion. The company expects Q2 adjusted EPS of between $0.57 and $0.59 on revenue up 10.5% to $12.5%. Analysts polled by Capital IQ expected adjusted EPS of $0.56 on revenue of $3.93 billion. For 2024, BSX is calling for adjusted EPS of $2.29 to $2.34 on revenue growth of 11% to 13%. Analysts surveyed by Capital IQ expect full-year adjusted EPS of $2.25 on $15.58 billion in revenue. BSX shares were up 6.6%.

The UK's Competition and Markets Authority announced the first phase of its antitrust investigations on Wednesday into deals made by Amazon (AMZN) and Microsoft (MSFT) with artificial intelligence companies. In advance of initiating its formal investigations, the regulator issued invitations to comment regarding Amazon's partnership with Anthropic, as well as Microsoft's partnership with Mistral AI and its hiring of certain former employees of Inflection AI. Microsoft stock was up 0.2% around midday, while shares of Amazon were down 1.3%.

Shares of B. Riley Financial (RILY) soared after the company on Wednesday filed its annual report on Form 10-K for the fiscal year ended Dec. 31 after a prolonged delay. The company said it identified material weaknesses in its internal controls over financial reports that expose it to additional risks, according to the filing. An independent audit committee investigation confirmed that B. Riley and its executives had no involvement with any of the alleged misconduct concerning a company client who had been linked to securities fraud, the company said. B. Riley shares were up nearly 27%.

KKR (KKR) is considering acquiring Healthium Medtech, an Indian medical device maker, Bloomberg reported Wednesday, citing people familiar with the matter. The deal could be valued at as much as $1 billion, Bloomberg reported, citing the people. Shares of the company were down 1.5%.

Airlines will have to provide automatic refunds to customers if their flights are canceled or altered significantly under a new rule issued Wednesday by the US Department of Transportation. The new rule also requires refunds for significantly delayed baggage returns and for extra services like Wi-Fi, seat selection or inflight entertainment that were paid for but not received. The regulator issued another final rule requiring airlines and ticket agents to tell customers upfront what fess they charge for a checked bag, a carry-on bag and for canceling or changing a reservation. Shares of American Airlines (AAL), Delta Airlines (DAL) and United Airlines (UAL) were down by 1.2%, 2.1% and 2.7%, respectively.

Oracle (ORCL) is planning to move its corporate headquarters to Nashville to be near a major healthcare hub, Executive Chair Larry Ellison said Tuesday, according to media reports. Oracle shares were down 0.4%.

Nvidia (NVDA) said Wednesday it has agreed to acquire Israel-based workload management and orchestration software provider Run:ai. The financial terms of the deal were not disclosed. Nvidia's stock was trading down 0.6%.