The aviation industry faced turbulence as Boeing (BA, Financial) shares tumbled following an incident involving two of its aircraft at Chicago's O'Hare International Airport. The Federal Aviation Administration's ongoing investigation into the collision between Delta Airlines (DAL) and All Nippon Airways (ALNPY) planes has heightened concerns, contributing to a 7.5% drop in Boeing's stock price. This decline also reflects the cumulative effect of previous issues, including a recent problem with the 737 Max 9 aircraft.
In contrast, Advanced Micro Devices (AMD, Financial) experienced a surge in its share price, climbing over 7% after receiving favorable price target revisions from Barclays and Susquehanna Financial. The optimism is rooted in the company's potential to capitalize on the burgeoning artificial intelligence market, with Barclays projecting a significant increase in AI-related sales for AMD.
Chinese electric vehicle manufacturers, including XPeng (XPEV, Financial), NIO (NIO, Financial), and Li Auto (LI, Financial), saw their stocks decline amid a cautious investor sentiment. The sector is grappling with sluggish insurance registration data, intense pricing competition, and geopolitical concerns, all of which have led to downward revisions in sales forecasts for 2024.
Spirit Airlines (SAVE, Financial) witnessed a dramatic 51% plunge in its share price after a federal judge blocked its proposed $3.8 billion sale to JetBlue Airways (JBLU, Financial), citing antitrust grounds. Conversely, JetBlue enjoyed a 7.2% uptick following the ruling.
The Walt Disney Company (DIS, Financial) managed to outshine its competitors at the Emmy Awards, securing the most accolades across its various platforms. Despite recent underperformances at the box office, Disney's success at the Emmys, with shows like FX's The Bear leading the charge, provided a glimmer of positive news for the entertainment giant.
MongoDB (MDB, Financial) saw a modest increase in its share value amid speculative talks of a potential acquisition. The company, which specializes in document database management, has been the subject of unconfirmed buyout interest.
Vertex Pharmaceuticals (VRTX, Financial) celebrated the FDA's approval of its gene editing therapy, Casgevy, for transfusion-dependent beta-thalassemia, marking a significant milestone as the first U.S.-approved gene editing treatment. The approval, which follows a recent nod for sickle cell disease, underscores Vertex's pioneering role in the biotech industry.
Citi (C, Financial) reported an uptick in its credit card master trust net charge-off rate, although the delinquency rate saw a slight decline. The bank's lending activity has shown growth, with an increase in principal receivables.
CVR Energy (CVI, Financial) experienced a dip in its stock price following a downgrade by Scotiabank, which cited profitability concerns and a relative valuation that appears expensive compared to peers.
Ramaco Resources (METC, Financial) shares dropped as UBS initiated coverage with a Neutral rating, pointing to the metallurgical coal producer's valuation and the anticipation of declining coking coal prices.
Cannabis stocks enjoyed a rally after the US Department of Health and Human Services and state attorneys general recommended reclassifying marijuana as a less dangerous substance, potentially easing federal restrictions.
Barrick Gold (GOLD) reported a decrease in annual gold production, falling short of both its guidance and analyst estimates, which sent its shares down. The company also saw a decline in copper production for the year.
OpenAI confirmed collaborations with the U.S. military on cybersecurity and other initiatives, just days after altering its usage policy to allow military use of its technology. This partnership includes developing tools to address veteran suicides and cybersecurity challenges.
Gevo (GEVO, Financial) filed for a mixed shelf offering to potentially raise up to $750 million, although the company has not yet made an offer to sell these securities.
BofA Securities' Global Fund Manager Survey revealed a prevailing optimism among investors regarding rate cuts and a macroeconomic "soft landing." The survey highlighted investment trends and crowded trades, with a focus on major tech companies.
Tesla (TSLA, Financial) CEO Elon Musk expressed his desire to maintain significant voting control over the company as it ventures into robotics and AI, suggesting he would be uncomfortable without at least a 25% stake.
The geopolitical landscape is shifting, with increasing risks in key trade regions like the Red Sea and heightened tensions in areas such as northern Iraq. This has led to calls for increased defense spending among allied nations.
The semiconductor sector, led by AMD, started the week on a positive note, with most stocks in the industry trading higher. Barclays' revised price target for AMD reflects the anticipated demand for AI technology.
