Stocks slumped Tuesday as equities remained pressured by rising bond yields. The yield on the 10-year Treasury hit 4.801%, marking its highest level since 2007.
These stocks made moves on Tuesday:
HP Inc.
(HPQ) was up 1.8% to $26.13 after the stock was upgraded to Buy from Underperform at
BofA
and the price target was raised to $33 from $25. BofA analysts said they’re seeing an improving PC market backdrop and the company has been tighter on cost controls. Separately, Warren Buffett’s
Berkshire Hathaway
(BRK.B) sold another 5.1 million shares of HP in recent days as it continues to reduce its stake in the maker of personal computers and printers. Berkshire now holds 100.9 million shares of HP worth about $2.6 billion based on the current market price of HP shares.
WK Kellogg
(KLG) was initiated with a Sell rating and a price target of $11 by analysts at Goldman Sachs. The stock fell 16% to $11.24. On Monday,
WK Kellogg
declined 9.1% and
Kellanova
(K) fell 6% following the spinout of the two companies from the former Kellogg. WK Kellogg houses the North America cereals business, while
Kellanova
is home to snack brands such as Pringles.
McCormick
(MKC), the parent of flavor brands such as French’s, Frank’s RedHot and
McCormick
spices, reported fiscal third-quarter adjusted earnings of 65 cents a share, matching analysts’ estimates, but revenue of $1.68 billion that came up short. The stock fell 8.5%.
Oddity Tech
(ODD), the beauty-products company, said it expects its third quarter “to be our strongest third quarter ever.” Oddity forecast year-over-year net revenue growth for the third quarter of between 29% and 31%, higher than its initial guidance of 18% to 23%. It also said it expects gross margin of 68.5%, about 100 basis points higher than its previous guidance. Analysts at Truist upgraded their recommendation on Oddity to Buy from Hold. The stock rose 5.3%.
Eli Lilly
(LLY) reached an agreement to acquire radiopharmaceutical company
Point Biopharma Global
(PNT) for $12.50 a share or $1.4 billion. Point Biopharma shares surged 85% to $12.36.
Warby Parker
(WRBY) rose 3.4% to $13.72 after shares of the eyeglasses retailer were upgraded to Outperform from In Line with a $20 price target at Evercore ISI.
Clean Energy Fuels
(CLNE) rose 3.9% to $3.73 after Raymond James upgraded the stock to Strong Buy from Outperform with an unchanged price target of $6.
Airbnb
(ABNB) was downgraded to Sector Weight from Overweight at KeyBanc without a price target, with the analysts saying the company’s margins have reached a near-term peak and revenue growth could decelerate to 11% year over year in 2024 as room night and average daily growth rate moderates. The stock declined 6.5%.
Ford (F) and General Motors (GM) have laid off roughly an additional 500 workers combined as the continuing strike by the United Auto Workers forces the auto makers to idle more factories. Separately, GM said it received a counteroffer from the UAW to the company’s most recent proposal. A GM spokesman told the Detroit Free Press there was a meeting Monday between the GM and UAW. “The union did present a counter to our proposal from Sept. 21. We are assessing, but significant gaps remain.” Ford declined 2% and GM fell 3.4%.
Krispy Kreme
(DNUT) rose 0.6% after the firm said it was exploring strategic alternatives including an all-cash sale for Insomnia Cookies.
Krispy Kreme
bought a majority stake in Insomnia Cookies in 2018 and said it expects revenue of about $230 million in fiscal 2023.
Write to Joe Woelfel at [email protected]
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