The stock market is trading lower at midday, approaching its third consecutive day of declines.
The S&P 500 lost 1.12% and the tech-heavy Nasdaq Composite fell 1.87%. The Dow Jones Industrial Average fell 1.03% and the Russell 2000 index fell 1.02%.
All Magnificent 7 shares are down at midday. Tesla fell 2% ahead of its quarterly earnings, which will be released later today.
The biggest stocks in the S&P 500 today
Five S&P 500 stocks making big midday moves are:
- Northern Trust (NTRS) +7.8%
- Packaging Corporation of America (package) +5.7%
- Teledyne Technologies (TDY) +4.9%
- AT&T (t) +4.1%
- Texas Instruments (TXN) +3.8%
The five S&P 500 stocks with the worst performance and the biggest drop at midday are:
- Phase Energy (ENPH) -14.6%
- Co-star (CSGP) -8.6%
- Seagate technology (STX) -7.5%
- McDonald's (DCM) -5.3%
- Old Dominion Freight Line (ODFL) -5.0%
Actions also worth highlighting include:
- NVIDIA (NVDA) -3.6%
- tesla (TSLA) -2.2%
- Apple (AAPL) -2.7%
- Coca-cola (IS) -1.7%
- starbucks (SEX) -0.2%
McDonald's falls due to E. coli outbreak
Shares of McDonald's fell 5% by midday after the CDC linked an E. coli outbreak to the chain's Quarter Pounder burgers, leading to 10 hospitalizations and one death.
The CDC reported 49 cases in 10 states, most in Colorado and Nebraska.
Related: McDonald's president points out worrying trend and changing outlook
The outbreak may be linked to the chopped onions used in the burgers, coming from a single supplier.
McDonald's has removed chopped onions from affected locations and has stopped distribution in affected areas. The company said it is taking “swift and decisive action” as the investigation continues.
Starbucks drops in preliminary earnings
Starbucks fell 0.2% after releasing preliminary quarterly results that showed another drop in sales.
The coffee chain reported a 3% drop in sales during the quarter as it struggled to reverse falling demand. Its new CEO, Brian Niccol, who recently left Chipotle Mexican Grill, said the “Back to Starbucks” plan will focus on returning to growth.
Related: Analysts Revisit Chipotle Stock Price Targets After Surprising CEO Departure
Niccol plans to reveal more details during the Oct. 30 earnings conference call and is already refocusing marketing, simplifying the menu and addressing pricing issues. The company also plans to suspend guidance for fiscal 2025.
Same-store sales fell 7%, the steepest drop since the pandemic. The company attributed its weak performance to reduced demand in North America.
Despite these challenges, Starbucks increased its dividend from 57 cents to 61 cents per share.
Coca-Cola is trading down despite improving results
Coca-Cola shares lost 2% even after the soda giant reported better-than-expected quarterly earnings and revenue.
The company reported earnings per share of 77 cents, beating Wall Street's forecast of 74 cents per share. Revenue of $11.95 billion also topped analysts' estimate of $11.60 billion.
More retail stocks:
- Popular luxury brand invests in the “sober market”
- NRF sounds alarm on growing retail problem
- US senator points to inflationary contraction in letter to Pepsi, Coca-Cola and General Mills
Unit case volume fell 1% in the quarter, driven by weakening demand in international markets such as China and Mexico.
Customers remain price sensitive. “Low-income consumers are the most stressed, and the purchasing occasion that is most stressed is when they are shopping for the home,” CEO James Quincey said during the earnings conference call.
Related: Veteran Fund Manager Sees a World of Hurt for stocks
