11:52 AM EDT, 09/20/2024 (MT Newswires) -- All three major US stock indexes were down in late-morning trading Friday as investors gave back some of the gains recorded Thursday in the wake of the Federal Reserve's 50-basis-point interest rate cut.

In company news, Constellation Energy ( CEG ) said Friday it has signed a 20-year power purchase agreement with Microsoft ( MSFT ) , enabling the launch of the Crane Clean Energy Center and the restart of Three Mile Island Unit 1 in Pennsylvania, which shut down five years ago. Under the terms of the agreement, Microsoft ( MSFT ) will buy carbon-free energy for its data centers from the plant. Constellation said significant investments will be made to restore the plant. The US Nuclear Regulatory Commission must approve any restart of a nuclear reactor, Constellation said. Shares of Constellation were up more than 14% near noon, while those of Microsoft ( MSFT ) were down 0.6%.

FedEx ( FDX ) reported fiscal Q1 adjusted earnings late Thursday of $3.60 per diluted share, down from $4.55 a year earlier and below the Capital IQ consensus analyst estimate of $4.77. Fiscal Q1 revenue was $21.6 billion, down from $21.7 billion a year earlier and below the consensus analyst estimate of $21.91 billion. For fiscal 2025, the company said it now expects a low single-digit revenue growth rate year over year, compared with the previous forecast calling for a low-to-mid single-digit rate. Fiscal 2025 adjusted EPS is now expected to be between $20 and $21, down from the previous guidance of $20 to $22. FedEx ( FDX ) expects to buy back an additional $1.5 billion of common stock in fiscal 2025, bringing its repurchase total to $2.5 billion. Shares of FedEx ( FDX ) were down nearly 15%.

American Airlines ( AAL ) is in talks with Citigroup ( C ) to make the bank its exclusive credit card partner, a move that would result in the airline dropping Barclays ( JJCTF ) from a partnership that dates back to 2013, CNBC reported, citing people with knowledge of the negotiations. American Airlines ( AAL ) has been working with card networks and banks for months on a new long-term deal as it seeks to consolidate its business with a single issuer, the people reportedly told CNBC. The talks are ongoing, and the timing of an agreement, which would require regulatory approval, is not known, CNBC reported, citing the people. American Airlines ( AAL ) shares were down about 1%, while those of Citigroup ( C ) and Barclays ( JJCTF ) were down 1.7% and 0.4%, respectively.

Lennar's ( LEN ) lower-than-expected fiscal Q3 gross margin on home sales and a downbeat near-term outlook for its margin weighed on investor sentiment despite the homebuilder beating market expectations on its Q3 earnings and revenue, analysts said. Lennar's ( LEN ) Q3 gross margin came in at 22.5%, down from 24.4% in the year-ago period and missing Wedbush Securities' forecast by 50 basis points, the brokerage said in a Friday note to clients. The homebuilder said its margin fell mainly due to a decline in revenues per square foot and an increase in land costs, partially offset by a drop in costs per square foot due to lower material costs. For Q4, Lennar ( LEN ) said it expects gross margin on home sales to be flat. The company reported Q3 EPS of $4.26, up from $3.87 a year ago and above the Capital IQ consensus analyst estimate of $3.63. Fiscal Q3 revenue was $9.42 billion, up from $8.73 billion in Q3 2023 and above the consensus analyst estimate of $9.16 billion. Lennar ( LEN ) shares were down 4.7%.

General Motors ( GM ) is recalling 449,671 vehicles in the US to fix the electronic brake control module software, which may fail to display a warning light when the brake fluid runs low, the US National Highway Traffic Safety Administration said Friday. The recall includes certain 2023 Chevrolet Silverado 1500, GMC Sierra 1500, 2023-2024 Chevrolet Tahoe, Suburban, GMC Yukon, Yukon XL, Cadillac Escalade and Escalade ESV models, the agency said. Shares of General Motors ( GM ) were down 0.6%.

Nike ( NKE ) said Thursday that Elliott Hill will rejoin the company as chief executive officer, effective Oct. 14. John Donahoe will retire from the CEO role, effective Oct. 13, Nike ( NKE ) said. Donahoe will remain as an advisor to the company to ensure a smooth transition through Jan. 31, 2025. Hill was president, consumer and marketplace at Nike ( NKE ) before retiring in 2020, the company said. Nike ( NKE ) shares were up 6.2%.

Price: 241.30, Change: +32.80, Percent Change: +15.73