Markets
Nikkei 225
35,025.00
▲ +193.85 / +0.56%
SSE Composite
2,858.20
▼ -3.99 / -0.14%
IBOVESPA
131,339.52
▲ +724.92 / +0.56%
Straits Times
3,235.38
▼ -26.45 / -0.81%
BMV IPC
53,020.14
▼ -31.40 / -0.06%
Dow Jones
39,466.64
▼ -30.90 / -0.08%
DAX 40
17,723.50
▲ +21.47 / +0.12%
BSE SENSEX
79,648.92
▼ -56.99 / -0.07%
FTSE 100
8,210.25
▲ +42.15 / +0.52%
JSE Top 40
73,645.00
▼ -83.30 / -0.11%
Last Week’s Highlights
Investors to take advantage of stock selloff
Investors are cautiously considering buying back into U.S. tech stocks that have recently experienced a significant decline. Despite the drop in valuations, the sector still trades above its 10-year average, making it vulnerable to future turbulence. Mixed earnings reports from major companies and economic uncertainties have contributed to the cautious approach. However, some investors view tech stocks as defensive safe havens due to their strong balance sheets and potential for earnings growth. Despite recent market stabilization, uncertainty about the economic landscape persists, and some investors are waiting for better entry points before buying tech stocks.
Expedia goes up on good Q2 results
Ford Motor reported a drop in second-quarter adjusted profit due to quality issues and challenges in its EV business. The company missed analysts’ profit expectations, leading to an 11% drop in its stock price in after-hours trading. While Ford is working to address structural inefficiencies, the stock market remains skeptical. The company’s efforts to fix quality problems have led to increased warranty expenses and a high number of recalls. Despite this, Ford maintained its annual earnings guidance. The company is facing challenges in its EV journey but is focusing on expanding its global hybrid portfolio and developing affordable electric vehicles. Ford’s commercial vehicle business continues to drive overall profit, posting an operating profit of $2.6 billion for the quarter. Meanwhile, crosstown rival General Motors reported a strong second-quarter performance, driven by strong pricing and demand for gas-powered trucks, leading to a raised annual forecast. However, analysts remain concerned about the auto industry’s future resilience.
Coming Up This Week
Starbucks jumps after activist takes stake
Starbucks has experienced a 3.5% increase in its stock price due to activist investor Starboard Value’s interest in the company. The exact details of Starboard’s demands are not known, but the investor aims to improve Starbucks’ stock performance. This comes at a time when Starbucks is already dealing with a drop in global sales and the involvement of another activist investor, Elliott Investment Management.
Take-Two to bank on new gaming hit
A jury found that Abbott Laboratories’ specialized formula for premature infants caused a girl to develop a dangerous bowel disease, awarding $495 million in damages. The girl’s attorney emphasized the importance of companies being honest about their products, while Abbott disagreed with the verdict, stating the importance of specialized formulas for premature infants. The lawsuit is one of many similar claims pending in courts across the country. The lawsuits allege that the companies did not sufficiently warn about the risk of necrotizing enterocolitis (NEC) associated with infant formula. The jury verdict was not unanimous, and Abbott plans to appeal.
