Otherwise the bears will be out for their feeding. With the stock up 8% on Monday and now looking like a bounce here on Tuesday, either people know something…or there is more hope getting baked in.
S&P downgraded several US banks, noting “tough” operating conditions. We’re talking Comerica, Keycorp, UMB Financial, Assoc Bank Corp, and Valley National Bancorp. S&P mentioned high interest rates, large deposit outflows, and liquidity issues/funding risks.
That’s what Dick’s Sporting Goods cited as one reason for its earnings miss and lowered guidance. Shares tanked almost -20%. Obviously, we’ve been watching the stories about key retailers leaving downtown San Francisco for similar reasons. Interestingly, Macy’s was down after beating on both top and bottom lines, because of weak 3Q23 guidance. Markdowns to clear inventory dampened sales.
The home improvement retailer beat on its 2Q23 earnings call, but missed on revenues. Yet it reaffirmed its full year guidance, satisfying investors.
Zoom was up after beating on 2Q23 results as well. Also, mgmt issued better guidance for 3Q and full year 2023.
Softbank’s semi unit Arm filed for what may be this year’s largest IPO in the US. 28 banks are supporting it…just not MS. If successful in Sep, you might see Instacart, Birkenstock, and other co’s try to tap the public markets as well.
$MSFT submitted a different deal to acquire ActiVision to the UK regulator, and it looks like the $69bn acquisition may make it through. The co would sell the rights of all current and future Activision games released during the next 15 years to Ubisoft.
It’s not even Halloween yet, and BBG put out a scary new piece about deepfakes heightening financial crime. From computer-generated children’s voices that will fool parents to masks created from photos on the Internet that can fool face ID protection, it’s enough to heighten the “boo” factor of the nearly $8.8bn in consumer losses via financial fraud last year.
Chinese stocks rallied late and baffled traders. The Hang Seng rose almost 2% within minutes, and the CSI 300 went from a loss of -0.7% to a gain of 0.8%. BBG is reporting that half of HK stocks are Oversold. But foreign investors keep taking cash out, so traders were looking for the reason behind the moves.
