Hasbro Jumps as Earnings Show Licensing Strength

Major U.S. equities indexes were little changed in the midweek session, with the uncertain path toward lower interest rates weighing on sentiment as investors digest a slew of earnings reports from some of the biggest names in the stock market.

After trading in negative territory for much of the day, the S&P 500 recovered in the afternoon to end with a minimal gain of less than 0.1%. The Nasdaq ticked 0.1% higher, while the Dow lost 0.1%.

Tesla (TSLA) became the first of the Magnificent 7 companies to release quarterly results with its report Tuesday afternoon. Although first-quarter sales and profits fell shy of expectations, Tesla shares soared 12.1%, marking Wednesday’s top performance in the S&P 500. CEO Elon Musk said the carmaker could begin producing more affordable electric vehicles (EVs) sooner than expected. Musk also highlighted advancements in artificial intelligence (AI) infrastructure and said another major carmaker is in talks to license Tesla’s driver assistance system.

Hasbro (HAS) shares jumped 11.9% after the toymaker reported better-than-expected earnings per share (EPS) and revenue for the first quarter of 2024. The firm’s CEO pointed to a strong performance from Hasbro’s licensing portfolio as a signal that transformation efforts are yielding results.

Wabtec (WAB) also beat quarterly revenue and earnings estimates, and its shares gained 10.0%. In addition, the provider of parts for locomotives, subways, and buses raised its full-year guidance, saying a strong order pipeline increases its confidence in achieving profitable growth over the remainder of 2024.

Shares of Old Dominion Freight Line (ODFL) suffered the heaviest losses in the S&P 500, plummeting 11.1% on Wednesday in the wake of the less-than-truckload (LTL) shipping company’s first-quarter earnings report. Although Old Dominion’s quarterly EPS matched consensus forecasts, revenue came in below expectations as the weight of shipments hauled by the company fell year over year.

Teledyne Technologies (TDY) stock dropped 11.0% after the electronic instrument maker missed estimates with its first-quarter sales and profit results. The company also lowered its full-year EPS guidance, citing soft demand for its imaging and instrumentation products amid weakness in the industrial automation as well as test and measurement markets.

Enphase Energy (ENPH) also reported lower-than-expected first-quarter revenue and EPS figures while lowering its sales guidance for the current quarter, citing weak demand. Solar companies have struggled with high interest rates, which make it more expensive to finance installations and other projects. Enphase has reduced shipments as it looks to manage channel inventory. Enphase shares sank 5.6% following the report.