Lowe's, PacWest, Yelp stocks rally while BJ's and Zoom Video shares fall, and other stocks on the move

By MarketWatch

PacWest's stock extended rally helps fuel broad gains in the regional bank sector

Here are some of the more prominent movers on Tuesday:

Stock gainers:

Lowe's Companies Inc.'s stock (LOW) jumped 1.7% in afternoon trading, after the home improvement retailer beat fiscal first-quarter profit expectations. While same-store sales fell more than forecast, they outperformed rival Home Depot Inc. (HD), and the lowered full-year profit guidance range still bracketed Wall Street projections.

PacWest Bancorp shares (PACW) rose 7%, a day after a 20% rally from selling a discounted portfolio of real estate loans. The extended gains, with the stock up 60% in five days, helped fuel a broad rally in the regional bank sector. The SPDR Regional Banking exchange-traded fund(KRE) climbed 2.0% with 134 of its 143 equity components gaining ground.

Yelp Inc. shares (YELP) surged about 6% after the Wall Street Journal reported an activist investor is calling on the company to consider selling to boost its value.

Shares of Wyndham Hotels & Resorts Inc. (WH) rallied nearly 7% after The Wall Street Journal reported that fellow hotel chain Choice Hotels International Inc. (CHH) was looking to buy the company. Choice Hotels shares slumped 4.6%.

American International Group Inc. shares (AIG) hiked up 4.2%, after the insurer announced an agreement to sell its treaty reinsurance business to RenaissanceRe Holdings Ltd. for $2.74 billion in cash and $250 million worth of RenaissanceRe shares. That helped lift RenaissanceRe's stock (RNR) by 4.1%.

Tegna Inc.'s stock (TGNA) tacked on nearly 3% after the TV-station operator announced a $300 million "accelerated" stock buyback and raised its quarterly dividend by 20% following the termination of a merger deal with the hedge fund Standard General.

Stock decliners:

Shares of BJ's Wholesale Club Holdings Inc. (BJ) dropped nearly 8% after the membership-based warehouse retailer reported fiscal first-quarter profit that matched expectations but revenue that missed.

Zoom Video Communications Inc.'s stock(ZM) took a 7.5% hit, reversing an initial 5% jump after hours Monday, as the videoconferencing company topped Wall Street expectations across the board on results and forecasts

U.S. Foods Holdings Corp.'s stock (USFD) sank nearly 4% after the foodservice distributor said shareholder KKR Fresh Holdings LP was offering 17.4 million shares for sale.

Lordstown Motors Corp. shares (RIDE) slumped more than 5% after the electric vehicle maker declared a 1-for-15 reverse stock split, that will be effective May 24.

Shutterstock Inc. shares (SSTK) fell 1.4% after the the digital media and marketing company announced an agreement to buy GIF and stickers company Giphy Inc. from Meta Platforms Inc. for $53 million in cash. Meta's stock (META) eased 0.4%.

Achieve Life Sciences Inc.'s stock (ACHV) plunged 26%, as investors expressed disappointing in the data that came from a second confirmatory late-stage trial of its cytisinicline for quitting smoking and nicotine dependence.

Guardant Health(GH) shares fell 2.2% after the cancer testing company announced a secondary offering of its stock.

-MarketWatch

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05-23-23 1522ET

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