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GM, STLA, ADBE, DASH and more

by Mark Mendoza

The United Auto Workers (UAW) strike at General Motors (GM), Ford, and Stellantis has grabbed headlines as workers walked off the job at several assembly plants. This strike comes after a failed attempt to settle a new labor contract by the deadline. The impact of the strike is being felt across the industry, with stock prices of GM, Ford, and Stellantis responding to the news.

Shares of Ford saw a slight increase, while General Motors gained 1% and Stellantis was up 2%. These fluctuations are a direct result of the UAW strike and the uncertainty it brings to the market. Investors are carefully monitoring the situation, as strikes can have significant financial implications for automakers.

In addition to the UAW strike, other companies are also making headlines in midday trading. Planet Fitness experienced a 13% decrease in shares after the gym chain’s board decided to push out CEO Chris Rondeau. This move came as a shock to employees close to Rondeau, according to a source familiar with the matter. Craig Benson, a former governor of New Hampshire, has been appointed as the interim CEO.

Steelmaker Nucor saw a 5% decrease in shares after offering worse-than-expected guidance for third-quarter earnings. The company cited pricing and volume challenges as the reasons for its lower-than-expected earnings forecast. Analysts had predicted higher earnings, leading to the decline in Nucor’s stock price.

Therapeutics stock PTC Therapeutics plummeted 28.3% after the European Medicines Agency’s Committee for Medicinal Products for Human Use issued a negative opinion on its drug to treat Duchenne muscular dystrophy. This news led Raymond James to downgrade the stock to underperform from outperform.

Infrastructure stock Core & Main retreated over 3% after announcing a secondary stock offering. The offering involves the sale of 18 million Class A shares by selling shareholders, along with the repurchase of 3.1 million Class A shares and the buyback of partnership interests in a company unit.

Arm Holdings, which recently went public, saw a 2% slip in shares during its second trading session. While the stock initially dropped, it has since recovered slightly. Needham, an investment banking firm, initiated coverage of Arm Holdings with a hold rating. Needham analyst Charles Shi cautioned that the stock’s value already appears to be “full.”

Diabetes-focused healthcare companies Insulet and Dexcom experienced a decline in shares after Bloomberg News reported that Apple has selected a new leader for its team working on a noninvasive blood sugar monitoring device. Insulet shares shed 3%, while Dexcom shares fell 3.8% as a result of this news.

Chip equipment stocks ASML Holding, KLA, Lam Research, and Applied Materials dropped nearly 4% each following reports that Taiwan Semiconductor is delaying deliveries due to demand concerns. This news also led to a 2% loss for U.S.-listed shares of Taiwan Semiconductor.

Shares of Adobe, the maker of Photoshop, dropped 4% following its fiscal third-quarter earnings report. While the company reported an earnings and revenue beat, JPMorgan remained neutral on the stock due to macroeconomic headwinds and a high premium for Adobe’s pending acquisition of Figma for $20 billion.

Biopharmaceutical company Apellis Pharmaceuticals advanced 7.5% after receiving an upgrade from Wells Fargo. The bank cited a favorable risk/reward ahead of Apellis’ third-quarter earnings as the reason for the upgrade.

Food delivery company DoorDash saw a 3% decrease in shares after MoffettNathanson downgraded the stock. The Wall Street firm expressed concerns about the resumption of loan repayments and the introduction of bookings risk to the food delivery industry.

Insurance stock Axis Capital rose 2.7% following an upgrade from Bank of America. Despite recent underperformance in the reinsurance space, Bank of America changed its pessimistic outlook on the stock.

Cosmetics stock Estée Lauder advanced nearly 2% after Redburn Atlantic Equities upgraded its rating from sell to neutral. The firm noted that the company was experiencing technical benefits as customer ordering patterns normalize.

Waste stock Casella Waste Systems traded about 1.6% higher after receiving an initiation from Goldman Sachs at buy. The firm described Casella Waste Systems as a “compounder with pricing.”

It is clear that various companies across different industries are experiencing significant market movements this midday. The outcome of the UAW strike at GM, Ford, and Stellantis will continue to be closely watched, as it has the potential to impact the entire automotive sector. Investors are advised to monitor the situation and make informed decisions based on market developments.

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