Home Business NIO, Moderna, Block, U.S. Steel, Rocket Lab, and More Stock Market Movers

NIO, Moderna, Block, U.S. Steel, Rocket Lab, and More Stock Market Movers

by Mark Mendoza

U.S.-listed shares of NIO, the Chinese electric-vehicle maker, experienced a 4.4% drop in premarket trading after the company announced its plans to raise $1 billion through the issuance of convertible senior notes. NIO intends to use a portion of the proceeds to reduce its debt, while the rest will be allocated to strengthen its balance sheet and support general corporate purposes.

Moderna, on the other hand, saw a 0.6% increase in premarket trading following a significant decline of over 9% in the previous session. This decline was attributed to Pfizer’s CFO predicting weaker demand for Covid-19 vaccines this year. Moderna had been the worst performer in the S&P 500 on Monday.

Square, a fintech company, experienced a 1% decline after it was announced that Alyssa Henry, the head of the company’s Square payments platform, would be stepping down on October 2. Henry has been with Square for more than nine years. The company stated that Jack Dorsey, who leads the overall Square business, will assume Henry’s role.

U.S. Steel released fiscal third-quarter guidance that exceeded expectations, causing its shares to fall slightly in premarket trading. The steel producer forecasted adjusted earnings of $1.10 to $1.15 per share, surpassing analysts’ estimates of $1.01. The company also acknowledged the anticipated impact of the strike by the United Auto Workers.

Rocket Lab’s shares dropped by 20% in premarket trading after the space company experienced an issue during the launch of its 41st mission. Rocket Lab stated that an issue occurred around two minutes and thirty seconds into the flight, resulting in the termination of the mission. The company’s next mission, scheduled before the end of the third quarter, will be postponed.

CVS Health received an upgrade to Outperform from In Line at Evercore ISI, leading to a 1.7% increase in its shares. The price target was also raised to $83 from $81.

Meanwhile, Rackspace Technology’s shares rose by 8.1% to $1.60 after being upgraded to Outperform from Market Perform at Raymond James. The cloud-computing company also received a new price target of $3.50.

Stitch Fix, an online personal styling company, reported a 22% decline in fiscal fourth-quarter revenue. The company’s active client base also decreased to 3.3 million from 3.4 million in the previous quarter and 3.8 million a year earlier. Stitch Fix expects first-quarter revenue of $355 million to $365 million, representing an 18% to 20% decline from the previous year and falling below analysts’ estimates of approximately $402 million.

Earnings reports from AutoZone and Apogee Enterprises are scheduled for Tuesday.

Overall, these developments illustrate the volatility and varying performance of different companies in the stock market. Investors should carefully consider these factors when making investment decisions.

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