The Morning Buzz: Stock Market Update

The Morning Buzz: Stock Market Update

Shares of Trump Media & Technology took a hit, dropping over 11%, following the debate between Republican nominee Donald Trump and Democratic Vice President Kamala Harris. The company, majority owned by the former president, faced a significant decline in its stock value.

Rentokil Initial saw its shares plummet by about 20% after issuing a profit warning. The parent company of Terminix expects second-half organic sales growth in North America to slow to approximately 1% due to weaker-than-expected trading in July and August. This news had a ripple effect on fellow pest control company Rollins, with their shares falling nearly 5% in sympathy.

Entertainment stock, Dave & Buster’s, surged more than 13% after beating earnings estimates for the recent quarter by 15 cents a share. However, revenues fell short of Wall Street’s expectations, indicating a mixed performance for the company.

Video game retailer, GameStop, experienced a sharp decline in sales leading to a more than 10% drop in share value during premarket trading. The company reported revenue of $798 million in the latest quarter, a significant decrease from $1.16 billion a year ago. In addition, GameStop announced an “at-the-market” stock offering of up to 20 million shares, signaling further challenges ahead.

Home furnishing company, Williams-Sonoma, saw a 3% increase in shares following an upgrade from Jefferies to buy from hold. The firm highlighted the company’s “hidden gems” within its portfolio and its potential to benefit from a modest recovery in the housing market.

U.S.-listed shares of Swiss pharmaceutical company Novartis dropped by 2% after a downgrade from Bank of America to hold from buy. The bank expressed concerns about the company’s growth prospects moving forward, leading to a negative sentiment among investors.

Biotech company, Viking Therapeutics, experienced a more than 4% increase in shares after JPMorgan initiated coverage with an overweight rating. The firm cited an upcoming data readout in November as a positive catalyst for the stock, with a price target implying more than 40% upside potential.

Stocks tied to the price of bitcoin faced pressure as the flagship cryptocurrency saw a slight decline overnight. Traders were digesting central bank policy in Japan and awaited key U.S. inflation data. Coinbase and MicroStrategy fell 2% and 3% respectively, while major bitcoin miners, MARA Holdings and Riot Platforms, lost 3% and 1% after a recent rally.

Shares of major bank, Morgan Stanley, declined more than 1% after Goldman Sachs downgraded the stock to neutral from buy. Goldman expressed concerns about the company looking expensive relative to its peers, leading to a negative outlook on the stock in the near term.

The stock market experienced a mix of ups and downs with various companies facing challenges and opportunities in their respective industries. Investors will need to carefully monitor these developments to make informed decisions about their investment portfolios.

Finance

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