Several companies were making headlines before the bell, with mixed results for their stock prices. Apple saw a decline of 1.4% after Jefferies downgraded the tech giant to hold from buy, citing lower-than-expected initial demand for the iPhone 16 and 17. NXP Semiconductor, on the other hand, saw shares rise by 0.8% after UBS upgraded the chipmaker to buy, citing healthy inventory levels and strong profit margins. Amazon’s shares slumped nearly 2% after Wells Fargo downgraded the e-commerce company due to slowing growth and competition from Walmart.
Pfizer experienced a boost in shares of nearly 3% after activist investor Starboard Value took a roughly $1 billion stake in the struggling company, seeking a turnaround. KB Home, however, saw a 2% slip in its stock after being downgraded by Wells Fargo to underperform, with concerns that the homebuilder may lag behind its peers in the next phase of the cycle. Coty, a beauty company, saw a 2.5% jump in its stock following an upgrade to buy from hold by Jefferies, highlighting growth in the fragrance segment and an attractive valuation.
Hershey, the chocolate maker, experienced a 1% dip in its stock after receiving downgrades from UBS and Bernstein, citing challenges related to cocoa inflation and headwinds from GLP-1 drugs. American Express saw a more than 1% decline after JPMorgan downgraded the stock to neutral from overweight, citing an expensive valuation with limited upside potential. Wynn Resorts, on the other hand, saw a 2.5% increase in its stock following the announcement that it received the first commercial gaming operator license in the United Arab Emirates. Ally Financial also saw a 1.4% increase in its stock following a JPMorgan upgrade to overweight from neutral, citing an appealing risk-to-reward ratio.
Overall, the stock market saw varied reactions to news about these companies before the bell. Some faced downgrades and declines in stock prices, while others received upgrades and saw increases in share value. Investors will be keeping an eye on these companies as they navigate their respective challenges and opportunities in the current market environment.
