McDonald’s down after outbreak, Starbucks slides after warning: Morning Buzz

Get caught up quickly on the top news and calls moving stocks with these five Top Five lists.

1. STOCK NEWS:

• McDonald’s (MCD) shares are continuing yesterday’s slide after the CDC said an E. coli outbreak is linked to the company’s Quarter Pounder hamburgers
• Starbuck (SBUX) reported downbeat preliminary Q4 earnings and revenue and suspended its guidance for fiscal 2025
• Texas Instruments (TXN) reported upbeat Q3 results but provided a conservative outlook fofr Q4
• Boeing (BA) reported better-than-expected Q3 earnings and revenue, with CEO Kelly Ortberg saying the company is “clearly at a crossroads”
• Coca-Cola (KO) reported upbeat Q3 results and provided comparable EPS growth guidance for fiscal 2024

2. WALL STREET CALLS:

• Snap (SNAP) upgraded at JMP Securities, here’s why
• Guggenheim and Baird get more bearish on McDonald’s (MCD), downgrade shares after Quarter Pounder onions linked to E. Coli outbreak
• Texas Instruments (TXN) upgraded at Summit Insights after earnings
• Wells downgraded Interpublic Group (IPG) to Underweight on valuation risks
• eBay (EBAY) reinstated with a Buy at Needham

3. AROUND THE WEB:

• OpenAI and Microsoft (MSFT) are funding a $10M AI local news project operated by the Lenfest Institute, Axios reports
• The UK’s healthcare spending watchdog has rejected Eli Lilly’s (LLY) Alzheimer’s drug as being too expensive despite being approved as safe and effective by the country’s medicines regulator, FT says
• Meta Platforms (META) and CEO Mark Zuckerberg won the dismissal of a lawsuit claiming they misled shareholders in a proxy statement about their ability to ensure the safety of children who use Facebook and Instagram, Reuters reports
• Arm (ARM) is looking to scrap a key license that allows Qualcomm (QCOM) to use intellectual property to design chips, Bloomberg says
• HSBC (HSBC) CEO told staff in a memo they should brace for job cuts after the bank’s latest restructuring, Reuters says

4. MOVERS:

• Tevogen (TVGN) raises after announcing Tevogen AI joined Microsoft for Startups
• Spirit Airlines (SAVE) gains after the Wall Street Journal reported Frontier Airlines (ULCC) is exploring a renewal bid for the company
• Stride (LRN) increases after reporting Q1 results and providing guidance FY25
• Constellium (CSTM) lower in New York after reporting Q3 results and providing guidance for FY24
• Enphase Energy (ENPH) falls after reporting Q3 results, with EPS and revenue missing consensus

5. EARNINGS/GUIDANCE:

• AT&T (T) reported Q3 results and backed its guidance for FY24
• GE Vernova (GEV) reported Q3 results, with EPS missing consensus
• General Dynamics (GD) announced Q3 results, with CEO Phebe Novakovic commenting, “The company continues to see strong growth and steady improvement in operating performance”
• Seagate (STX) reported Q1 results, with EPS and revenue beating consensus
• Lennox (LII) announced Q3 results and raised its guidance for FY24

INDEXES:

Near midday, the Dow was down 300.69, or 0.70%), to 42,624.20, the Nasdaq was down 181.94, or 0.98%, to 18,391.19, and the S&P 500 was down 35.95, or 0.61%, to 5,815.25.