As the market opened, several companies made headlines with significant movements in their share prices. Among them was Trump Media & Technology, which experienced a sharp decline of over 11% following a debate involving Republican nominee Donald Trump and Democratic Vice President Kamala Harris. Despite being majority-owned by the former president, the company saw a sizable drop in its stock value.
Industry Woes for Rentokil Initial
Rentokil Initial faced a challenging start to the day as its shares plummeted by about 20%. The parent company of Terminix issued a profit warning, citing expectations of second-half organic sales growth in North America slowing to approximately 1%. This downward revision was attributed to weaker-than-expected trading in the region during the months of July and August. The news had a ripple effect on fellow pest control company Rollins, with its shares declining nearly 5% in sympathy.
Entertainment stock Dave & Buster’s experienced a surge of over 13% after surpassing earnings estimates for the recent quarter by 15 cents per share. However, the company fell short of Wall Street’s revenue expectations. This mixed performance had investors and analysts closely monitoring the stock’s movements in the wake of the earnings report.
In contrast, video game retailer GameStop faced a challenging start to the day with shares plunging by more than 10% in premarket trading. The company reported a significant decline in sales, with revenue dropping to $798 million in the latest quarter from $1.16 billion a year ago. Additionally, GameStop announced an “at-the-market” stock offering of up to 20 million shares, adding another layer of uncertainty for investors.
Jefferies Upgrades Williams-Sonoma
Home furnisher Williams-Sonoma saw its stock price rise by 3% following an upgrade by Jefferies from hold to buy. The investment firm highlighted the company’s “hidden gems” within its portfolio and anticipated potential benefits from even a modest recovery in the housing market. This positive outlook from Jefferies provided a much-needed boost to Williams-Sonoma amidst market turbulence.
Swiss pharmaceutical company Novartis found itself under pressure as U.S.-listed shares shed 2% following a downgrade by Bank of America from buy to hold. The bank cited fewer growth catalysts ahead for Novartis, signaling potential challenges for the company in the competitive pharmaceutical industry. Investors closely monitored Novartis’ stock movement in response to the downgrade.
Viking Therapeutics Receives Positive Coverage
On a more optimistic note, biotech company Viking Therapeutics saw its shares jump by over 4% after JPMorgan initiated coverage with an overweight rating. The company, which competes in the GLP-1 space, is poised for a potentially positive catalyst with an upcoming data readout in November. JPMorgan issued a price target of $80, implying more than 40% upside for Viking Therapeutics. This vote of confidence from a major financial institution boosted investor sentiment towards the company.
Stocks tied to the price of bitcoin faced pressure as the flagship cryptocurrency experienced slight fluctuations overnight. Crypto traders monitored central bank policies in Japan and anticipated key U.S. inflation data, contributing to market uncertainty. Coinbase and MicroStrategy saw declines of 2% and 3%, respectively, while major bitcoin miners MARA Holdings and Riot Platforms experienced losses of 3% and 1% following a recent rally. The volatility in the crypto market added to the overall market turbulence.
Morgan Stanley Faces Downgrade
Shares of major bank Morgan Stanley declined by more than 1% after Goldman Sachs downgraded the stock from buy to neutral. Goldman highlighted concerns about Morgan Stanley appearing expensive relative to its peers, prompting a reassessment of the bank’s valuation. The downgrade placed additional pressure on Morgan Stanley’s stock as investors reevaluated their positions in light of the new rating.
Overall, the morning market movements showcased a mix of challenges and opportunities for investors across various sectors. As companies navigated changing market conditions and economic uncertainties, investors remained vigilant in monitoring stock developments and adjusting their portfolios accordingly.