Dow falls more than 250 points after Fitch downgrade dampens sentiment: Live updates

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10 Mins Ago

Rosenblatt disagrees with market in Pinterest upgrade

Investment firm Rosenblatt disagrees with investors who sold Pinterest following its earnings report.

Despite what analyst Barton Crockett called a “decent” second quarter report released Tuesday, shares were down around 3%. The company beat Wall Street expectations on revenue when comparing performance against the consensus estimate compiled by FactSet.

Crockett upgraded shares to buy from neutral. He cited margins rising, revenue ramps, the positive reaction to commerce and a deal to increase the advertising load in his decision.

“In a choppy ad market, with cost-pressures galore, Pinterest is making enticing progress, laying a foundation for revenue acceleration, margin expansion and rising relevancy that can bolster the shares,” he said.

— Alex Harring

30 Mins Ago

Credit sectors more appealing than equities in a high-yield environment, says Jefferies

The 10-year yield hit 4,102% Monday, marking its highest level since November 10, 2022. Jefferies’ chief market strategist David Zevros believes that the equity market may start to see a bit of a crunch if the 10-year yield continues to push higher.

“If we start to really push 10-year yields up to the top of the range, [such as] 4.25% or higher, I think that’s where you can get a little bit of an issue with with people. People thinking about valuation slightly differently,” Zevros told CNBC’s “Squawk on the Street” on Wednesday.

The credit sectors of the market, particularly leveraged loans, may be easier than stocks to “skin the return” as yields remain higher for longer, Zevros added.

— Hakyung Kim

55 Mins Ago

Freshworks shares jump more than 18%

Canaccord Genuity upgraded Freshworks shares to buy from hold, citing several positive catalysts ahead for the software company.

“There was a lot to like in Freshworks’ Q2 print, the second in a row that we’d describe in that light,” Hynes said in a Tuesday note. The company is “bringing it all together — [Go-to-market (GTM)] enhancements, operating efficiency, AI products and more,” Hynes added. The company posted its second-quarter results Tuesday.

Freshworks shares jumped more than 18% on Wednesday.

To read more about the upgrade, click here.

See Chart…

Freshworks stock

An Hour Ago

Chinese tech stocks fall after regulators float child smartphone rules

An Hour Ago

Solar ETF drops as SolarEdge earnings weigh on sector

A selloff in SolarEdge shares following its earnings report has dragged on solar stocks.

The Invesco Solar ETF (TAN) is down more than 4% in morning trading. That puts it on track to post its worst dance since April 26, when the fund finished 5.5% lower.

SolarEdge led the fund lower after missing revenue expectations for the quarter. The company reported $991 million, slightly under the $992 million consensus estimate of analysts polled by Refinitiv.

Shares have tumbled about 17.5%, putting the stock on pace for its worst session since Aug. 3, 2022, when it closed 19.1% down.

Shoals, SunRun, Enphase and SunPower also contributed to the ETF’s drop, with each stock losing around 5%.

— Alex Harring, Gina Francolla

2 Hours Ago

Stocks open lower after Fitch downgrade

2 Hours Ago

Norwegian Cruise Line shares fall nearly 3% premarket

Norwegian Cruise Line’s stock has jumped more than 58% in 2023 — but the rally is weak compared with peers Royal Caribbean and Carnival, which have surged 117.3% and 123.2%, respectively.

Although the company’s second-quarter earnings topped Wall Street’s estimates, the stock on Tuesday subsequently dropped more than 12% on weaker-than-expected guidance for the third quarter.  

“Despite a constructive mid-term guide from NCLH (e.g., >70% of sales over the last 90 days were for 2024 and 2025 sailings), it’s clear the liner is still  in the early-to-middle innings of its turnaround, with the return to pre-pandemic adjusted EBITDA margins going to take ‘some time,'” analyst Christopher Stathoulopoulos said in a Wednesday note. The firm downgraded its rating on Norwegian Cruise Line shares to neutral from positive.

Shares fell more than 3% before the bell.

CNBC Pro subscribers can read more about his downgrade here.

See Chart…

Norwegian Cruise Line Holdings shares

2 Hours Ago

Match jumps 10% as investors cheer strong earnings and outlook

Shares of online dating stock Match Group climbed more than 10% during premarket trading after beating Wall Street’s expectations for earnings and offering strong guidance.

The Tinder and Hinge parent reported 48 cents earned per share on $830 million in revenue for the second quarter on Tuesday. Both figures were better than analysts had anticipated, with consensus estimates compiled by Refinitiv showing Wall Street forecasted 45 cents in earnings per share and revenue of $811 million.

Match also gave an upbeat outlook for the current quarter. The company said to expect revenue between $875 million and $885 million in the quarter, a range that’s higher than the analyst consensus estimate of $864 million.

BTIG upgraded shares to buy from neutral following the report, citing a recovery in Tinder.

— Alex Harring

2 Hours Ago

Stocks making the biggest premarket moves

Check out the companies making headlines before the bell on Wednesday:

  • SolarEdge Technologies — The solar stock plunged 14.6% after the company missed revenue expectations in its second quarter, reporting $991 million compared to the expected $992 million from analysts polled by Refinitiv.
  • CVS Health — Shares of the retail pharmacy giant fell 2% premarket even after the company posted strong earnings and revenue for the second quarter. CVS reported earnings of $2.21 per share on revenue of $88.9 billion.
  • Humana — The health insurer added 5.8% after reporting second-quarter adjusted earnings per share of $8.94, topping the $8.76 anticipated by analysts, per StreetAccount.

Read here to see which other companies are making moves before the open.

— Pia Singh

3 Hours Ago

Private payrolls rise more than expected in July

Private sector companies added more jobs than anticipated in July, according to a Wednesday report from ADP.

The payroll processing company said jobs gains totaled 324,000 in July, with 201,000 stemming from hospitality and leisure jobs. That came in well above the 175,000 additions Dow Jones economics expected.

It marks a decline from June’s revised 455,000 number.

— Jeff Cox, Samantha Subin

3 Hours Ago

SolarEdge plunges on mixed results, weak outlook

SolarEdge Technologies shed more than 12% before the bell after reporting mixed quarterly results and sharing a third-quarter revenue outlook that fell short of expectations.

The solar company reported earnings of $2.62 a share, excluding items. That came in ahead of the $2.52 expected by analysts polled by Refinitiv. SolarEdge reported revenues of $991 million, slightly below the $992 million expected.

Along with the mixed results, SolarEdge issued weaker-than-expected revenue guidance for the third quarter. The company said it expects revenues to range between $880 million and $920 million. Wall Street analysts polled by Refinitiv had expected revenues of $1.05 billion.

— Samantha Subin

4 Hours Ago

AMD gains on earnings

Shares of chipmaker Advanced Micro Devices added more than 2% before the bell after posting better-than-expected second-quarter results.

Despite the top-and-bottom line beat, the company reported an 18% decline in revenue from a year ago and shared a slightly lighter-than-expected sales forecast for the third quarter.

AMD, a maker of graphics processing units playing an integral role in large language models and generative AI, has benefitted from the recent boost in related stocks, with shares up 81.6% year to date.

CEO Lisa Su said that the company made “strong progress” during the period to meet growing customer AI needs.

— Samantha Subin, Kif Leswing

4 Hours Ago

CVS Health tops earnings expectations

CVS Health shares moved nearly 2% higher in the premarket after reporting second-quarter results that topped Wall Street’s expectations on both the top and bottom lines as it trims costs and slashes jobs amid its push into healthcare.

The healthcare giant posted adjusted earnings per share of $2.21, versus the $2.11 expected by analysts, according to Refinitiv. Revenues came in at $88.9 billion, ahead of the $86.5 billion expected.

The company also kept its full-year adjusted guidance calling for earnings between $8.50 and $8.70 per share.

— Samantha Subin, Spencer Kimball

6 Hours Ago

Yellen downplays Fitch debt downgrade

Treasury Secretary Janet Yellen said in a statement that she disagreed with Fitch’s decision to downgrade the U.S.’ debt.

“The change by Fitch Ratings announced today is arbitrary and based on outdated data,” Yellen said in a statement. “Fitch’s quantitative ratings model declined markedly between 2018 and 2020 – and yet Fitch is announcing its change now, despite the progress that we see in many of the indicators that Fitch relies on for its decision.”

“Many of these measures, including those related to governance, have shown improvement over the course of this Administration, with the passage of bipartisan legislation to address the debt limit, invest in infrastructure, and make other investments in America’s competitiveness,” Yellen added.

— Fred Imbert

7 Hours Ago

2-year Treasury yield falls as investors weigh economic outlook

U.S. Treasury yields were mixed on Wednesday as investors considered the outlook for the economy after Fitch Ratings downgraded the U.S.’ long-term foreign currency issuer default rating on Tuesday.

At 4:13 a.m. ET, the yield on the 10-year Treasury was down by over one basis point to 4.0292% after hitting its highest level since early July on Tuesday. The 2-year Treasury yield was trading over four basis points lower at 4.8705%.

Meanwhile, the 30-year Treasury yield was up by less than a basis point to 4.1074%.

Treasurys

TICKER COMPANY YIELD CHANGE %CHANGE
US1M U.S. 1 Month Treasury 5.376% -0.003 0.00%
US3M U.S. 3 Month Treasury 5.438% +0.008 0.00%
US6M U.S. 6 Month Treasury 5.504% -0.003 0.00%
US1Y U.S. 1 Year Treasury 5.396% -0.003 0.00%
US2Y U.S. 2 Year Treasury 4.921% +0.009 0.00%
US10Y U.S. 10 Year Treasury 4.112% +0.065 0.00%
US30Y U.S. 30 Year Treasury 4.199% +0.096 0.00%

8 Hours Ago

European equity markets open lower

European stock markets opened lower Wednesday as investors navigate a busy week of earnings and global sentiment drags.

The pan-European Stoxx 600 index was down 1% in the first few minutes of trading, with all sectors and major bourses trading in negative territory. Media stocks were the biggest downward pressure on the index, with a drop of 1.6%, while financial services lost 1.5% and household goods were down 1.4%.

— Hannah Ward-Glenton

12 Hours Ago

ASEAN manufacturing activity sees softest expansion in seven months

Manufacturing activity across the ASEAN region expanded at the softest pace in seven months, with the headline purchasing managers index at 50.8. in July.

This marked a third straight month of decline and pointed to a mixed picture across the ASEAN region, with only four of the seven constituents registering an improvement in operating conditions.

Indonesia displaced Thailand at the top of the PMI rankings with a PMI reading of 53.3 for July, while Thailand recorded a PMI reading of 50.7.

The Philippines and Myanmar rounded off the list of countries with improving manufacturing sectors, with PMI readings of 51.9 and 51.1 respectively.

In contrast, the countries that reported a deterioration in July were Vietnam, Singapore and Malaysia.

— Lim Hui Jie

13 Hours Ago

Country Garden Services surges 20% following plan to buy back shares

Shares of Hong Kong property management services company Country Garden Services surged 20% after the company announced its intention to repurchase up to 337.31 million shares, representing 10% of its total issued shares as of May 25.

In a filing, the company said the shares have been trading at a price level which does not fully reflect its intrinsic value. The move is aimed at shoring up investor confidence.

However, the filing also cautioned that the share repurchase is subject to the sole discretion of the board “based on the market conditions and that no assurance can be given as to the timing, quantity or price of any repurchase.”

14 Hours Ago

Currency check: Yen strengthens and Aussie dollar weakens after U.S. credit rating downgrade

Asian currencies largely strengthened against the U.S. dollar after rating agency Fitch cut the U.S.’ credit rating from AAA to AA+.

IG market analyst Tony Sycamore said this will spark risk aversion flows, which means lower equities in Asia, as well as safe haven buying of treasuries and currencies such as the Japanese yen and Swiss franc against riskier currencies, such as the Australian and New Zealand dollars.

The Japanese yen, long considered a safe haven currency, strengthened 0.16% to trade at 143.1 against the greenback.

In contrast, the Australian dollar weakened marginally to trade at 1.51 against the greenback and the New Zealand dollar slid 0.31% to trade at 1.63.

— Lim Hui Jie

15 Hours Ago

South Korea’s inflation rate hits 2.3% in July

South Korea’s consumer price index rose 2.3% year-on-year in July, the lowest rate of growth since June 2021 and lower than the 2.4% expected by economists polled by Reuters.

The inflation print also marks its sixth straight month of decline. On a month on month basis, the country’s consumer price index rose 0.1%.

On Monday, minutes from the Bank of Korea revealed that board members were in favor of the benchmark rate being held at 3.5%, but “while closely monitoring real economic indicators, such as the inflation rate and financial stability conditions,” said one member.

— Lim Hui Jie

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