Cleveland-Cliffs suffers major losses as earnings reports disappoint
- Arm Holdings shares fell significantly after disappointing guidance was issued for the upcoming quarter.
- Multiple companies reported their first-quarter results, resulting in varied performances within the stock market.
- The mixed results highlight ongoing uncertainty and stock volatility in response to earnings and policy changes.
On May 8, 2025, significant movements were observed in various stocks during midday trading in the United States. Notably, U.S.-listed shares of Arm Holdings dropped 5% after the company provided bleak guidance for its upcoming quarter, signaling possible concerns for investors. Meanwhile, Kenvue, a consumer health company, enjoyed a more than 4% gain following its better-than-expected first-quarter results. Adjusted earnings exceeded analysts' predictions, and its revenue also surpassed consensus estimates. MercadoLibre also reported robust earnings with $9.74 per share on revenue of $5.94 billion, which was well beyond analyst expectations. Contrarily, Cleveland-Cliffs saw a sharp decline, plummeting 15.8% after revealing a significant loss that missed the average analyst forecast. The company announced a loss of 92 cents per share, which was worse than the anticipated 82 cents loss, and its revenue fell short of expectations. Peloton faced challenges as well, experiencing a more than 4% drop after reporting a larger-than-expected loss for its first quarter, leading to concerns over its business model. On a brighter note, Crocs soared by 10% after an impressive earnings report, although it did withdraw its full-year guidance due to uncertainties arising from global trade policies. The pharmaceutical sector also faced pressure after a report indicated upcoming policy changes under President Donald Trump that could significantly lower drug prices, causing a tumble in shares of major drugmakers. On the media front, Warner Bros. Discovery's stock saw a nearly 5% increase after speculation emerged about the separation of its linear networks from cable. These varied performances reflect the current volatility and uncertainty in the market, driven by earnings reports and external policy considerations.