News Digest / Latest Stock Market News / Market Weekly Wrap: Stocks Slide, Amazon News, and a Luxury Deal Unravels

Market Weekly Wrap: Stocks Slide, Amazon News, and a Luxury Deal Unravels

Alex Vellor
08:10am, Friday, Nov 15, 2024
Photo by vlog tottiy on Unsplash.com

Markets ended Thursday in the red as concerns over inflation, corporate earnings, and the Federal Reserve’s future rate policy weighed on investors.

The Dow Jones Industrial Average dropped 189 points, or 0.4%. The S&P 500 and Nasdaq Composite slipped 0.4% and 0.6%, respectively. All three indexes are on course for a weekly decline.

Friday Premarket Movers:

Company Stock Ticker Change Reason
Apple AAPL -0.7% Berkshire Hathaway sold about 100 million shares in Q3.
Tesla TSLA +0.7% RBC Capital raised price target, citing AV ambitions.
Domino’s Pizza DPZ +7.1% Warren Buffett's company took a stake in Q3.
Pool Corporation POOL +5.9% Warren Buffett's company took a stake in Q3.
Alibaba BABA +3% Better-than-expected earnings; cloud business growth.
BioNTech BNTX -2% Robert F. Kennedy Jr., a vaccine skeptic, appointed.
Moderna MRNA -2% Robert F. Kennedy Jr., a vaccine skeptic, appointed.
Novavax NVAX -2% Robert F. Kennedy Jr., a vaccine skeptic, appointed.
Applied Materials AMAT -8.2% Quarterly earnings missed expectations; slowing revenue from China.
Palantir PLTR +2.7% Announced shift to Nasdaq listing.

Inflation Data Offers Little Surprise

The October producer price index showed wholesale prices increased 0.2%, aligning with economists’ expectations. While the report avoided surprising markets, inflation remains a key concern for the Federal Reserve.

Chair Jerome Powell’s recent comments suggested the central bank may not act as aggressively next year to cut rates, signaling caution in its approach. Treasury yields responded, with the 10-year yield climbing two basis points to 4.439% on Friday, up from 4.31% last week. The 2-year yield also edged higher to 4.322%.

Amazon Targets Health Marketplaces

Amazon (NASDAQ: AMZN) is shaking up the health sector by introducing direct-to-consumer services for Prime members. The tech giant will offer fixed pricing for consultations and treatments for conditions like erectile dysfunction and hair loss. Medications will ship discreetly in standard Amazon packaging.

The announcement sent shockwaves through the market, hitting competitors hard. Shares of Hims & Hers Health plummeted more than 24%, marking the company’s worst trading day on record.

Amazon’s move underscores its ambition to disrupt established healthcare models, leveraging its vast logistics network to enter the competitive telehealth market.

Tapestry-Capri Merger Canceled

The much-anticipated merger between Tapestry (NYSE:TPR) and Capri Holdings (NYSE:CPRI) has officially unraveled. The companies cited regulatory hurdles after the Federal Trade Commission sued to block the $8.5 billion deal.

The merger would have created a powerhouse with six major fashion brands, including Kate Spade, Michael Kors, and Coach. Tapestry abandoned its appeal following a court loss last month, choosing instead to pursue independent growth strategies.

As part of the breakup terms, Tapestry will reimburse Capri approximately $45 million in expenses. Investors may see this as a setback for consolidation in the luxury fashion sector, which remains competitive and challenging.

Alibaba's Earnings Show Growth Amid Economic Headwinds

Chinese e-commerce giant Alibaba (NYSE:BABA) reported a 58% year-over-year rise in net income for the quarter ending September 30, driven by its equity investments. However, revenue grew by only 5% to 236.5 billion yuan, missing analysts’ forecast of 238.9 billion yuan.

Alibaba’s results reflect broader economic challenges in China, as sluggish consumer spending and a slower economy weigh on the retail sector.

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About The Author

Alex Vellor

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