Shares of Boeing dropped 1.8% as the aerospace company withdrew a pay raise offer to 33,000 machinists who have been on strike since mid-September. The strike, which has caused talks to break down, is estimated to cost Boeing over $1 billion per month, according to S & P Global Ratings. Reddit saw its shares rise over 2% after Jefferies initiated research coverage with a buy rating and a high price target, citing advertising and data licensing tailwinds. Alphabet’s shares dropped about 1% after the Justice Department submitted a court filing offering a range of options, including potential restrictions or a breakup, to address what it calls an unlawful monopoly in search.
Rio Tinto and Arcadium Lithium made headlines as Rio Tinto announced a deal to acquire Arcadium for $5.85 per share. This news caused Rio Tinto’s shares to dip 1.2%, while Arcadium’s shares surged 30%. Blackstone saw its shares fall nearly 1% after being downgraded to neutral from overweight by Piper Sandler, which stated that the stock had already priced in much of the positive news following a significant run-up prior to the Federal Reserve rate cut. GitLab’s shares rose 5% after Morgan Stanley initiated research coverage with an overweight rating, predicting that GitLab will emerge as a key consolidator in the market due to its wide range of product offerings across the software delivery pipeline.
U.S.-listed shares of major Chinese companies such as Alibaba, JD.com, and Nio continued to decline, following a lack of new major stimulus plans announced by officials after a week-long national holiday. Alibaba shed 3.2%, while JD.com and Nio lost 4.6% and 2.4%, respectively. Chewy’s shares rose almost 2% after TD Cowen initiated research coverage with a buy rating, expecting the pet products retailer to rally over 25% due to strong retail demand for pet health offerings. Norwegian Cruise Line’s shares rose 3.1% after receiving an upgrade to buy from neutral by Citigroup, which predicted the stock could rally over 44% as the company’s strategy shifts.
In summary, the stock market saw a mix of ups and downs among various companies. Boeing faced challenges with ongoing strikes and financial losses, while Reddit and GitLab received positive ratings and price targets from investment firms. Alphabet and major Chinese companies experienced declines, while Rio Tinto, Arcadium Lithium, Blackstone, Chewy, and Norwegian Cruise Line all made headlines with acquisition deals, downgrades, upgrades, or stock performance. These fluctuations and developments in the market reflect the diverse dynamics of the stock market and the impact of external factors on individual companies.
