Night movers — Jul 14: IBM's earnings warning crater while semis rebound
IBM's catastrophic 25% earnings-warning drop dominated the session and dragged software and IT services names lower, while semiconductor stocks LRCX, INTC, and NVDA rebounded sharply on valuation and chip-demand headlines. Bank earnings offered mixed signals as Citi posted record trading revenue yet still declined alongside broader financial-sector caution.
Idea
## Session overview IBM's catastrophic 25% earnings-warning drop dominated the session and dragged software and IT services names lower, while semiconductor stocks LRCX, INTC, and NVDA rebounded sharply on valuation and chip-demand headlines. Bank earnings offered mixed signals as Citi posted record trading revenue yet still declined alongside broader financial-sector caution. ## Compared with previous session Last night saw chip stocks Intel, AMD, and LRCX all drop roughly 4% to 6% amid an SK Hynix rout and an oil spike, while energy names XOM, COP, and CVX rallied. Tonight's session flipped the script for Intel and LRCX, which gained over 4%, though IBM's 25% plunge replaced Oracle's decline as the standout downside story. ## Gainers - **LRCX +4.90%** — No matching ingested catalyst was found for LRCX. The move is reported without a news attribution. - **INTC +4.50%** — Intel investors who bought during the peak of the dot-com bubble are finally out of the red, a painful reminder of why valuations matter. Meanwhile, a BofA note flagged Intel and ARM as facing near-term pain while AMD rides a server boom. - **NVDA +4.06%** — Nvidia reportedly halved its Asia buyer list amid a China chip crackdown even as Reuters revealed ZTE is among Chinese firms licensed to purchase Nvidia's H200 chips. The dual headlines underscored continued demand strength, and Yahoo Finance highlighted Micron and Nvidia as powering a $700 billion chip profit boom. - **XPEV +3.17%** — No matching ingested catalyst was found for XPEV. The move is reported without a news attribution. - **MS +2.98%** — Morgan Stanley raised its price target on Merchants Bancorp stock, putting the bank's research arm in the spotlight. The upgrade added to a constructive backdrop for financials as major banks delivered earnings updates. ## Losers - **IBM -25.21%** — IBM stock plummeted more than 25% after the company issued a Q2 earnings warning that rattled investors. The miss pummeled software stocks and IT services firms across the sector as sentiment soured. - **C -5.29%** — Citigroup's Q2 earnings call highlighted results that included record revenue from stock traders, with equities trading revenue surging 45% to $2.3 billion and EPS of $3.15 beating all estimates. Despite the trading strength, the shares declined as broader bank-earnings reactions turned mixed. - **MDT -5.11%** — No matching ingested catalyst was found for MDT. The move is reported without a news attribution. - **BSX -4.52%** — No matching ingested catalyst was found for BSX. The move is reported without a news attribution. - **BMY -4.03%** — Donald Trump's drug-pricing deals are reshaping Big Pharma, with implications for Pfizer, AbbVie, and Bristol Myers Squibb. The policy overhang weighed on BMY shares as investors assessed the potential impact on drug revenues.
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News sources
- Citigroup Q2 Earnings Call Highlights — Yahoo Finance
- Donald Trump's Drug-Pricing Deals Are Reshaping Big Pharma -- Here's What That Means for Pfizer, AbbVie, and Bristol Myers Squibb — Yahoo Finance
- Intel, ARM face near-term pain while AMD rides server boom: BofA — Yahoo Finance
- Intel Investors Who Bought During the Peak of the Dot-Com Bubble Are Finally Out of the Red. It's a Painful Reminder of Why Valuations Matter — Yahoo Finance
- Software Stocks, IT Services Firms Pummeled Amid IBM's Q2 Earnings Miss — Yahoo Finance
- IBM stock plummets more than 25% on Q2 earnings warning — Yahoo Finance
- Citi Stock Traders Post Record Revenue for Quarter — Bloomberg Markets
- EXCLUSIVE: ZTE among Chinese firms licensed to purchase Nvidia's H200 chips, documents show - Reuters — Reuters
- Here’s Why Morgan Stanley Raised Merchants Bancorp (MBIN) Stock Target — Yahoo Finance
- Nvidia halves Asia buyer list in China chip crackdown, FT reports - Reuters — Reuters