Midday Movers: Lamb Weston Climbs on Raised Guidance, Walgreens Slides After Dividend Cut

Key Takeaways

• U.S. equities were up at midday on Thursday, Jan. 4, 2024 following reports of record online spending during the holidays and a rise in private sector job creation.
• Lamb Weston shares rose after the food processor beat profit and sales estimates and raised its outlook on optimism about consumers and the operating environment.
• Walgreens shares sank after the pharmacy chain slashed its dividend to strengthen its cash position and pay for strategic initiatives.

U.S. equities posted gains at midday as reports on record holiday online spending and a rise in private sector hiring boosted confidence about U.S. economic growth. The Dow, S&P 500, and Nasdaq all gained. 

Lamb Weston (LW) shares climbed as the food processor reported better-than-expected results and raised its full-year earnings guidance, saying it sees the consumer and operating environment remaining stable.

Shares of Allstate (ALL) also rose after Morgan Stanley upgraded the stock and boosted the price target, calling the insurer an underappreciated story in a favorable market.

Eli Lilly (LLY) shares advanced as the pharmaceutical firm launched a website for patients to order weight-loss drugs directly from the drugmaker.

Walgreens Boots Alliance (WBA) was the worst-performing stock in the Dow after the pharmacy chain slashed its dividend and said it planned to use the money to boost its cash flow and pay for strategic initiatives.

Shares of APA (APA) lost ground as the oil producer paid $4.5 billion for rival Callon Petroleum. Callon shares rose.

The slide in Apple (AAPL) shares continued as Piper Sandler downgraded the stock, joining in the concerns about demand for iPhones.

Oil futures fell and gold prices were higher. The yield on the 10-year Treasury note was up. The U.S. dollar lost ground to the euro and pound, but climbed versus the yen. Most major cryptocurrencies traded in the green.

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