In midday trading, several companies were making headlines. Nio, a Chinese electric vehicle maker, saw its U.S.-listed shares climb 9.5% after announcing a 13.3 billion yuan cash injection for its Nio China business. This move is expected to be completed by year-end, and will reduce Nio Inc.’s stake in Nio China to 88.3% from its current 92.1%. On the other hand, Stellantis, an automaker, saw its stock fall more than 13% to hit a new 52-week low after issuing a full-year profit warning. The company cited a deteriorating “global industry backdrop” and increasing competition from China as contributing factors. This news also impacted other automakers such as GM and Ford, with their shares falling nearly 4% and more than 2%, respectively.
Alibaba, a Chinese e-commerce giant, saw its stock rise nearly 2% after the country’s central bank announced that it would ask banks to cut mortgage rates on existing home loans before Oct. 31. In other news, CVS Health experienced a 3.3% jump in its shares after hedge fund Glenview Capital expressed intentions to meet with the company’s executives to boost its struggling business. Glenview Capital has reportedly established a significant position in CVS Health. Meanwhile, stocks tied to the price of bitcoin saw a retreat following a substantial rally the previous week. Companies such as Coinbase and MicroStrategy were impacted, with Coinbase sliding 5% and MicroStrategy down 1%. Bitcoin itself was down 3% and trading under $64,000.
EchoStar, a satellite communications company, saw its stock decline by 12% after DirecTV agreed to buy EchoStar’s satellite television business, including Dish TV. This deal marks the resolution of decades-long discussions between the two distributors. On the positive side, Amerant Bancorp’s shares rose by 4% after Piper Sandler upgraded the Florida-based bank to overweight from neutral. Analyst Stephen Scouten pointed to an “attractive risk/reward” balance and the bank’s “ample capital to grow rapidly” as catalysts for the upgrade. Additionally, Moderna, a biotech company, saw its shares increase by over 1% after announcing the initiation of a phase three trial for a prospective norovirus vaccine.
Shares of Universal Health Services fell approximately 3% after a jury awarded $300 million to women who accused a former doctor at Cumberland Hospital for Children and Adolescents, an “indirect subsidiary” of Universal Health Services, of sexual abuse. This news had a negative impact on the company’s stock. Overall, the stock market saw a mix of positive and negative developments in midday trading, with various companies experiencing fluctuations in share prices. Investors will continue to monitor these companies for any further updates or announcements that could potentially impact their stock performance in the near future.
