JPMorgan Chase, Wendy’s and more

A sign is placed outside a Wendy’s restaurant on August 10, 2022 in Petaluma, California.

Justin Sullivan | Getty Images

Check out the companies making headlines in afternoon trading.

JPMorgan – Shares of the largest U.S. bank rose more than 2% by assets after the firm posted fourth-quarter profit and revenue that beat expectations. The New York-based bank said profit rose 6% to $11.01 billion, or $3.57 per share, from the prior period. Interest income at the bank increased by 48% as a result of high interest rates and loan growth.

Citigroup — Shares of Citigroup rose more than 1% as the company posted a record fourth quarter with flat revenue. The bank said net income fell more than 21% from last year as it set aside more money for potential loan losses.

Delta Airlines — Shares of the airline fell nearly 4% after the company said in its forecast that higher labor costs would hurt its first-quarter profit. Delta beat analysts’ expectations on the top and bottom lines for the fourth quarter.

Wendy’s — Shares of the fast-food chain rose 5.7% after Wendy’s shared positive preliminary fourth-quarter results and announced several changes to its corporate structure. Regulatory filings also indicated that Nelson Peltz was not interested in taking over Wendy’s.

Wells Fargo – The bank’s shares fell after the firm reported a decline in revenue, the latest settlement and the need to stockpile amid a worsening economy. Wells Fargo’s net income fell 50% to $2.86 billion from $5.75 billion a year ago. The bank booked $957 million in loan losses after reducing its reserves by $452 million a year ago.

Bank of America —The financial stock rose less than 1% on Friday after Bank of America beat estimates on both top and bottom lines for the fourth quarter. A sharp increase in net interest income helped the results, although management warned that the metric could decline sequentially in the first quarter. CEO Brian Moynihan also said a mild recession is the firm’s main assumption for 2023.

Virgin Galactic Holdings — rose nearly 13% after the space tourism company said it is on track for a commercial launch in the second quarter of 2023. The company also announced the departure of Swami Iyer, president of aerospace systems.

Tesla — Shares of the electric car maker fell more than 2% after Guggenheim downgraded it from neutral to sell and cut prices for its cars in the U.S. and Europe. Guggenheim cited concerns about Tesla’s fourth-quarter estimates in the downgrade.

Bank of New York Mellon — Shares of the midsize bank rose 2.5% on Friday after the company reported fourth-quarter net income of $509 million. That’s down 38% year over year, but up nearly 60% from the third quarter. Excluding certain items, that profit rose to $1.1 billion, or $1.30 per share, but it’s not clear if those results compare to analysts’ estimates.

UnitedHealth — The healthcare stock advanced more than 1% after the company beat Wall Street’s fourth-quarter expectations. UnitedHealth reported adjusted earnings of $5.34 per share on revenue of $82.8 billion. Analysts polled by Refinitiv had expected earnings of $5.17 per share on revenue of $82.59 billion.

Lockheed Martin — The hedge fund fell more than 3% after Goldman Sachs downgraded the stock to sell from a neutral rating. The company said shares could fall if the government cuts defense spending. Northrop Grumman The stock also downgraded Goldman by 5% to sell from neutral.

Salesforce — The program stock fell 1% after being downgraded from overweight to neutral by Atlantic Equities. The firm said the stock would be hurt by management departures and slowing growth.

Logitech — Shares of the consumer electronics company fell 3.3% after Deutsche Bank downgraded the stock from a buy rating to a hold rating. The decline built on Thursday’s losses after it reported preliminary results that showed slowing sales and earnings.

Warner Music Group – Shares of Warner Music Group fell 5.5% after Guggenheim cut its price target from $38 to $35 from buy on the stock, citing concerns about revenue from the music streaming service.

Cup — Shares of the Latin American airline rose 4.9% after JPMorgan analysts upgraded it from neutral to overweight. The bank said shares could rise 50% as air travel increases.

AutoNation — Shares of AutoNation fell 4.3% as Wells Fargo cut the auto retailer from an overweight rating to an equal weight rating, saying its valuation was “acceptable” and that estimates were too high.

— CNBC’s Jesse Pound, Yun Li, Michelle Fox, Alex Harring and Carmen Reinicke contributed reporting

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