Edwards Lifesciences Sinks on Outlook for Key Product

Major U.S. equities indexes were mixed after a report showing U.S. gross domestic product (GDP) grew at a greater-than-expected annualized rate of 2.8% in the second quarter.

Although indications of persistent economic strength temporarily took the spotlight on Thursday, boosting stocks in intraday trading, the concerns about muted tech earnings that sent stocks tumbling in the previous session reemerged in the afternoon.

The S&P 500 ended the day 0.5% lower, while underperformance from the communication services and technology sectors contributed to a decline of 0.9% for the Nasdaq. The Dow also receded from midsession highs but held onto a daily gain of 0.2%.

Shares of Edwards Lifesciences (EW) plummeted 31.3%, marking the heaviest losses among S&P 500 components, after the medical technology provider missed second-quarter revenue estimates. Although EPS came in slightly ahead of forecasts, Edwards cut its full-year sales forecasts for its transcatheter aortic heart-valve replacements (TAVR), one of its key revenue generators. The company also announced plans to acquire JenaValve Technology and Endotronix as it aims to expand its position in the cardiac health market.

Ford Motor (F) shares also came under pressure after a mixed earnings report, sinking 18.4% after the carmaker’s quarterly EPS fell short of expectations despite better-than-expected revenue. Revenue for Ford’s electric vehicle (EV) division declined 37% from the prior year, and the company recently announced that it would scrap plans to convert a plant in Canada to EV production, focusing instead on ramping up manufacturing of its Super Duty pickups.

Ford was not the only company in the auto industry facing a post-earnings decline on Thursday. Shares of LKQ Corp. (LKQ) dropped 12.4% after the car parts recycler missed second-quarter sales and profit estimates. The company also reduced its outlook for the remainder of the year, citing macroeconomic challenges in Europe and decreasing volumes.

ServiceNow (NOW) shares soared 13.4% to reach a record high and notch the top daily performance of any S&P 500 stock. The provider of cloud-based workflow management software exceeded analysts’ estimates with its second-quarter sales and profits, with robust demand for artificial intelligence (AI) products helping to drive a 23% year-over-year increase in subscription revenue.

A strong earnings report also helped lift shares of California-based insurer Molina Healthcare (MOH), which jumped 12.3%. The company beat second-quarter sales and profit forecasts, with 19% year-over-year revenue gains driven by securing new Medicaid contracts and growing existing businesses. Earlier in the week, Molina announced it would acquire ConnectiCare, a health plan serving Marketplace and Medicare members in Connecticut, expanding the company’s footprint in government-managed care.

Hospital and health care service provider Universal Health Services (UHS) topped sales and profit estimates with its second-quarter results, and its shares gained 10.2%. Despite underperformance from the company’s behavioral health services, growth in acute care helped drive the strong performance and prompted UHS to boost its full-year guidance.

Commercial real estate firm CBRE Group (CBRE) also reported better-than-expected revenue and earnings per share (EPS) for the second quarter, and its shares added 9.3%. CBRE boosted its full-year profit forecast, citing strong demand for leasing and loan servicing services, even as borrowing costs remain elevated. The company also pointed to a stabilization of the office real estate market, with particular signs of improvement in New York City.

A beat-and-raise quarter also helped lift shares of RTX Corp. (RTX), which gained 8.2% and hit an all-time high. The aerospace and defense manufacturer topped quarterly sales and profit estimates and boosted its full-year forecasts, citing demand for its products underpinned by strong commercial air traffic and high levels of military spending.