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Inside the Market Market movers: Stocks that saw action Wednesday - and why

A roundup of some of the North American equities making moves in both directions today

On the rise:

Shopify Inc. (SHOP-N; SHOP-T) shares were up more than 5 per cent on Wednesday. Mackie Research analyst Nikhil Thadani says the jump is likely due to the strong results of Amazon Inc.'s recent “Prime Day” sales event, which the retailer says resulted in US$2-billion in sales from independent third-party sellers. Mr. Thadani recently increased his target on Shopify to US$360 from $280 citing “future benefits from new game-changing features.”

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Shares of uniform maker Cintas Corp. (CTAS-Q) were up 8 per cent after the company reported record revenue and net income for its fourth quarter ended May 31. Revenue for the fourth quarter was US$1.79-billion, an increase of 7.4 per cent over last year’s fourth quarter and ahead of expectations of $1.78-billion.

Abbott Laboratories Inc. (ABT-N) shares were up 3.6 per cent after the company reported a 37-per-cent rise in quarterly profit on Wednesday, driven by demand for its heart devices and FreeStyle Libre system used to monitor blood sugar levels. The company’s net earnings rose to US$1-billion, or 56 cents US per share, in the second quarter ended June 30, from US$733-million, or 41 cents US per share, a year earlier.

Bank of America (BAC-N) shares rose by nearly one per cent after it reported a 10-per-cent increase in quarterly profit. Net income applicable to common shareholders rose to US$7.11-billion, or 74 US cents per share, in the second quarter ended June 30 from US$6.47-billion, or 63 US cents per share, a year earlier. Revenue, net of interest expense, was up about 2 per cent at US$23.08 billion.

McEwen Mining Inc. (MUX-N; MUX-T) shares rose more than 2 per cent in early trading after the company cut its production guidance for gold by 6 per cent. The company said production results "were mixed" in the quarter. "San José and El Gallo, which accounted for 62 per cent of our [second quarter] production, performed well this quarter. At Gold Bar and Black Fox, we have had our head down and were pushing hard all quarter long," stated chairman Rob McEwen "While both mines delivered better production in [the second quarter] than in [teh the first quarter], we didn’t achieve our forecast numbers. As a result, we have reduced our 2019 production guidance for gold by 6 per cent.”

U.S. cannabis retailer Curaleaf Holdings Inc. (CURA-C) shares surged 17 per cent in early trading after the company said it would acquire privately-held GR Companies Inc (Grassroots) in a cash and stock deal valued at about US$875-million. The deal will expand Curaleaf’s presence to 19 states from 12 at present, and the combined entity will have 131 dispensary licences, 68 operational locations and 20 cultivation sites, the company said.

On the decline:

Shares in railroad operator CSX Corp. (CSX-Q) dropped 9 per cent in early trading after the company reported a drop in second-quarter earnings versus a year earlier and missed expectations. The company reported earnings of US$870-million, or US$1.08 per share, versus US$877-million, or US$1.01 per share in the same period last year. Revenue declined by 1 percent over the prior year to US$3.06-billion.

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Apparel maker Ralph Lauren Corp. (RL-Q) shares were down 4 per cent in early trading after the stock was downgraded to “sell” from “neutral” at Goldman Sachs.

Shares of aircraft maker and service company Textron Inc. (TXT-N) were down 6 per cent in early trading after it said second-quarter profit fell 3 per cent and revenue declined. Net income came in at US$217 million or 93 cents US a share compared with $224-million, or 87 cents US a share for the same quarter last year. Analysts were expecting earnings to come in at 86 cents US a share in the latest quarter. Revenue fell 13.4 per cent to $3.2-billion compared with $3.7-billion in the year-earlier period.

Shares of Aimia Inc. (AIM-T) were down 6 per cent in mid-day trading on Wednesday amid a flurry of news about the company. The Globe and Mail reports Mexico’s leading airline is threatening to sever ties with Aimia, opening a second front for the Canadian loyalty-plan provider to fight after a board battle erupted over the past week. Meantime, The Canadian Press reports Aimia is suing its former president in a U.S. court after Nathaniel Felsher allegedly emailed trade secrets to his father, a New York-based investment adviser. Also on Wednesday, a shareholder released a statement citing the "current board of directors’ lack of respect for the rights of shareholders."

-with files from Tim Kiladze and wire services

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