Chinese stocks listed on U.S. exchanges saw a decline after China’s state planner failed to announce new economic stimulus plans. Online video company Bilibili, automaker Nio, e-commerce giants JD.com and Alibaba, as well as casino operators Wynn Resorts and Las Vegas Sands, all saw significant drops in their stock prices. However, electronic signatures company DocuSign saw its shares rise more than 5% after news broke that it would be replacing MDU Resources in the S&P 500 MidCap 400 index. Additionally, computer server maker Super Micro Computer saw a 4% increase in its stock price after announcing a major deployment of graphics processing units for AI factories.
Nvidia, the dominant maker of AI chips, experienced a nearly 2% increase following positive comments from Foxconn chairman Young Liu about the ongoing demand for Nvidia servers based on the upcoming Blackwell chip. Wells Fargo saw its stock rise over 1% after Wolfe Research upgraded the bank to outperform based on the belief that the negative news surrounding Wells Fargo is already reflected in its stock price. Health insurer Humana also saw a nearly 1% increase after Bernstein upgraded the company to outperform, suggesting that it could be an attractive investment opportunity following recent losses. On the other hand, Microsoft saw a slight decrease after Oppenheimer downgraded the company to perform from outperform due to concerns about potential losses at OpenAI related to slow AI adoption by businesses.
PepsiCo, the parent company of Gatorade and Frito-Lay, experienced a slight decrease in its stock price of less than 1% following a third-quarter earnings report that fell short of expectations. PepsiCo reported adjusted earnings per share of $2.31 on revenue of $23.3 billion, which was lower than the projected $2.29 per share on $23.8 billion revenue. The company also revised its outlook for organic revenue. Overall, the market response to these various companies was mixed, with some seeing gains and others facing losses.
In summary, China’s lack of new economic stimulus plans led to a decline in the stock prices of Chinese companies listed on U.S. exchanges. However, companies like DocuSign and Super Micro Computer saw their stocks rise after positive developments in their businesses. Nvidia and Wells Fargo also experienced increases in their stock prices following optimistic outlooks from industry insiders. On the other hand, Microsoft and PepsiCo faced slight decreases in their stock prices after concerns were raised about their future performance. The market remains volatile, with various factors influencing the stock prices of individual companies.
