Stocks making biggest moves midday: Splunk, Cisco, Broadcom, Fox

Cisco Systems acquires cybersecurity software company Splunk for $28 billion, causing Cisco's shares to fall and Splunk's shares to rise.

In San Jose, California, a sign has been posted in front of a Broadcom office, catching the attention of passersby. But beyond that, let's take a look at the companies that are making headlines in midday trading.

Cisco Systems and Splunk are in the spotlight today. Cisco's shares have fallen by 4.2% after the announcement that they will be acquiring cybersecurity software company Splunk for $157 per share in a cash deal worth approximately $28 billion. Interestingly, Splunk's stock price experienced a significant boost of 21.2% upon hearing this news.

Another company facing a downturn is KB Home, a homebuilder. Their stock has slid by 3% after revealing that they expect their gross housing margin to shrink in the current quarter. KB Home recently released their fiscal third-quarter report, which showed earnings of $1.80 per share on revenue of $1.59 billion. Analysts had predicted earnings of $1.43 per share and revenue of $1.48 billion.

On the flip side, Fox Corp and News Corp are experiencing positive movement in the market. Both companies saw their shares increase by 3% and 2%, respectively, upon the announcement that Rupert Murdoch will be stepping down as chairman of both entities.

Broadcom, however, is not faring as well. Their shares have dropped by almost 2% following a report by The Information. The report suggests that Google is considering dropping Broadcom as its artificial intelligence chip supplier in favor of developing its own chips internally by 2027.

Eli Lilly, a pharmaceutical company, is also facing a decline in their shares, which have fallen by 4%. Earlier this week, Eli Lilly filed a lawsuit against several clinics and pharmacies across the U.S. for allegedly selling unauthorized versions of their diabetes drug, Mounjaro, at a cheaper price.

Klaviyo, a marketing automation company, is experiencing a dip in their stock, which has fallen by 4%. Despite opening at $36.75 on the New York Stock Exchange, which was higher than the offering price of $30 per share, Klaviyo's shares have taken a hit.

The housing industry as a whole is facing challenges, as evidenced by the declining shares of PulteGroup, Zillow Group, and D.R. Horton. U.S. existing home sales have fallen in August due to tight supply and rising prices. PulteGroup's shares dropped by 3.6%, D.R. Horton fell by nearly 4%, and Zillow lost almost 3%.

In contrast, FedEx is enjoying a positive turn of events. Their shares have gained 4.4% following the release of their mixed fiscal first-quarter earnings. FedEx reported adjusted earnings of $4.55 per share, surpassing the forecast of $3.73 by analysts. However, their revenue of $21.68 billion fell slightly below expectations of $21.81 billion.

Lastly, streaming companies Paramount, Netflix, and Disney are experiencing an upward trend. It is reported that the Writers Guild of America strike may be coming to an end soon, which has boosted the shares of these streaming giants. Paramount's shares rose by 2%, while Netflix and Disney each gained approximately 0.5%.

Overall, the midday trading session has been eventful, with various companies experiencing both gains and losses. Investors and market enthusiasts are closely monitoring these developments as they navigate the ever-changing landscape of the stock market.