Top 5 Market Insights to Know Before Trading Begins

Market highlights for October 20, 2023

Solar sector shares declined after SolarEdge Technologies revealed unexpected European order cancellations, while Knight-Swift Transportation's stock surged following strong revenue growth in its less-than-truckload segment. Here's a detailed breakdown of the crucial market developments investors should watch today.

1. SolarEdge’s Alert Triggers Drop in Solar Energy Stocks

SolarEdge Technologies (SEDG) shares plunged 25% in pre-market trading after the company disclosed a significant volume of unexpected order cancellations from European distributors in the latter half of Q3. This announcement, ahead of the upcoming earnings report on November 1, follows a prior caution regarding U.S. sales in August. The news also impacted other solar companies, with shares of Enphase Energy (ENPH), Sunrun (RUN), and SunPower (SPWR) experiencing declines.

2. Knight-Swift Transportation Shares Surge on Strong Less-Than-Truckload Revenue

Shares of Knight-Swift Transportation (KNX) jumped nearly 18% in pre-market trading after the company reported that gains in its less-than-truckload business offset a 22% year-over-year drop in core truckload revenue during Q3. Overall, the company posted a 6.5% revenue increase to $2.02 billion, surpassing analysts' expectations of $1.89 billion.

3. CSX Anticipates Continued Slowdown in Rail Shipping, Shares Dip

CSX Corp. (CSX) forecasted that the sluggish rail shipping trends observed in Q3 will persist through the remainder of the year, influenced by cautious retailer behavior. The railroad's Q3 earnings were $0.42 per share, slightly below the $0.43 consensus, though revenue at $3.57 billion exceeded estimates of $3.55 billion. CSX shares declined 1% in pre-market trading.

4. Hewlett Packard Enterprise Shares Decline After Disappointing Fiscal 2024 Guidance

Hewlett Packard Enterprise Co. (HPE) saw its shares fall 5% pre-market following guidance for fiscal year 2024 that fell short of analyst forecasts. The company projected earnings per share between $1.82 and $2.02, below the anticipated $2.15, and revenue guidance of $29.15 billion, which missed the $29.63 billion analyst consensus.

5. CVS to Withdraw Certain Allergy and Cold Medications Amid FDA Concerns

CVS Health Corp. (CVS) shares dipped 0.2% after the retail pharmacy announced plans to remove select over-the-counter allergy and cold products containing phenylephrine, following FDA committee findings that the ingredient is ineffective when taken orally. CVS confirmed it will continue offering other oral cough and cold remedies.

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