The cybersecurity stock CrowdStrike experienced a 4% drop after Guggenheim downgraded the company to neutral from buy. Guggenheim stated that the company is unlikely to emerge unscathed from the global outage, causing concern among investors.
In contrast, Nvidia’s shares gained 2% following reports that the company is preparing a version of its new Blackwell chips specifically for the Chinese market. According to Reuters, these chips would be compatible with current U.S. export controls, indicating a potential expansion for Nvidia.
Bank of America faced a setback with its stock dipping more than 1% in premarket trading. This decline followed a filing that revealed Warren Buffett’s Berkshire Hathaway had sold 33.9 million Bank of America shares for almost $1.5 billion. Despite this, Berkshire remains the largest shareholder of Bank of America, holding a 10.8% stake.
Telecommunications giant Verizon experienced a 3% slide in its stock after posting quarterly revenue that fell short of estimates. The company’s sales of $32.8 billion in the second quarter missed the $33.05 billion FactSet consensus estimate, leading to concerns among investors.
In a more positive light, the retail stock Abercrombie & Fitch saw a more than 3% jump after JPMorgan upgraded the company to overweight from neutral. JPMorgan cited strong demand for the brand following improvements in marketing strategies over recent years.
Truist Financial, on the other hand, experienced a 1% decline in its stock as second-quarter profits dropped from a year ago. Factors such as lower net interest income, reduced loan demand, and a loss on the sale of securities contributed to the decline. Additionally, the bank reported higher adjusted noninterest expenses due to increased employee costs and professional fees.
Apple’s shares, on the other hand, saw a 1% gain after Wells Fargo raised its price target on the tech giant to $275 from $225. This new target implies more than 20% upside and comes ahead of the company’s earnings results. Wells Fargo expects Apple’s upcoming product launches to drive a significant upgrade cycle, leading to investor optimism.
The stock market is constantly evolving, with various companies experiencing both positive and negative trends based on a multitude of factors. Investors must stay informed and make prudent decisions to navigate these fluctuations effectively.