In a tumultuous day for the stock market, several major companies experienced significant shifts in their stock prices due to varying earnings reports and other impactful events. United Parcel Service (UPS) took a staggering hit, plummeting 16%, marking its worst day ever. Meanwhile, ServiceNow and Caterpillar also faced declines, while International Business Machines (IBM) saw a notable rise. American Airlines, Nvidia, and Dow reported mixed performances, adding to the day's volatility.
UPS, known for its extensive logistics network, witnessed a dramatic drop in its stock value. The decline followed an announcement that it had reached an agreement with its largest customer, Amazon, to "lower its volume by more than 50% by the second half of 2026." This strategic decision appeared to have rattled investors, contributing to the sharp decline in UPS shares.
"to lower its volume by more than 50% by the second half of 2026" – Amazon (UPS' largest customer)
ServiceNow's shares pulled back more than 12% after issuing a weaker-than-expected first-quarter revenue guidance. Investors responded negatively to the forecast, leading to a significant reduction in its stock value.
IBM, on the other hand, emerged as a bright spot in the market. The tech giant's shares surged by 12% following better-than-expected fourth-quarter results. This positive performance provided a glimmer of hope amid a broadly challenging day for stocks.
Caterpillar faced a decline of 4.8% after missing fourth-quarter revenue expectations despite earning $5.14 per share, excluding items, which surpassed Wall Street’s forecast of $5.02 a share. The revenue shortfall overshadowed the earnings beat, causing investors to react with caution.
American Airlines saw its shares fall 2.5% following an incident involving one of its regional jets colliding with an Army helicopter in Washington, D.C. Although the event was non-fatal, it raised concerns about safety and operational disruptions.
Nvidia shares declined more than 3% as the chipmaker continued to experience selling pressure. The company's stock has slipped over 16% so far this week amid broader industry challenges.
Dow reported mixed results with revenue of $10.3 billion falling short of the $10.9 billion FactSet estimate for the current quarter. However, Dow's annual revenue of $65.65 billion exceeded expectations of $63.36 billion. Despite surpassing yearly expectations, Dow's fourth-quarter operating earnings and revenue were below analysts' estimates, resulting in a cautious outlook for the first quarter.
Las Vegas Sands reported revenue of $2.9 billion, slightly ahead of the $2.87 billion forecasted by analysts polled by LSEG. This favorable outcome provided some relief amidst broader market uncertainties.
Northrop reported earnings of $6.39 a share, excluding items, which beat the consensus FactSet estimate of $6.35. This performance underscored its resilience in an otherwise unpredictable market environment.