Major US equity indices were neutral on Wednesday as the latest Consumer Price Index (CPI) data revealed an unexpected increase in inflation in January. The S&P 500 fell 0.3%. The Dow closed 0.5% down, while the Nasdaq gained less than 0.1%.
Westinghouse Air Brake Technologies (WAB) shares fell 9.1%, the highest of any S&P 500 firm. The maker of locomotive and train system components failed quarterly sales and profit targets. The business, also known as Wabtec, published lower-than-expected full-year profits projections, citing freight demand pressures, as well as higher pricing and financing expenses.
Arista Networks (ANET) shares fell 6.2% after allegations surfaced that the cloud networking firm’s chief technical officer had sold a major investment in the company. Investors frequently consider insider sales as a potential warning sign concerning a stock’s future performance. Wednesday’s decline reversed some of Arista stock’s substantial gains over the previous two weeks, which had been fueled by forecasts of high demand for scalable cloud networking infrastructure.
Waters (WAT), a provider of analytical tools and software for scientific research laboratories, exceeded fourth-quarter revenue and earnings estimates, but its first-quarter guidance fell short. The firm reported a negative impact from currency exchange, as the strength of the US dollar weighed on its overseas income. Waters shares fell 5.8% on Wednesday.
CVS Health (CVS) shares outperformed the S&P 500 on Wednesday, rising 14.9% after the drugstore operator and health insurance provider exceeded fourth-quarter sales and earnings expectations. CEO David Joyner, who took over CVS during a corporate reshuffle in October, reported excellent growth in the pharmacy and consumer wellness businesses as the firm navigated a tough environment in the health care benefits market. Generac Holdings (GNRC) shares rose 7.6% after the company’s fourth-quarter earnings exceeded profit estimates. The business stated that diminishing power quality and rising pricing, as well as the frequency of harsh weather and power disruptions, all led to high demand.
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