Midday Market Movers
The stock market has seen some notable shifts around midday. ASML, a significant player in semiconductor manufacturing equipment, saw its shares drop by 8%. Reports indicate that China is now mass-producing its own deep-UV chip manufacturing tools, which might be a factor in this decline.
In a striking development, memory chip stocks experienced a mixed day. CXMT, which recently went public in Shanghai, saw its share price skyrocket by over 466%. Meanwhile, industry giants SK Hynix and Micron Technology fell more than 8% and 5%, respectively, while SanDisk took an 11% hit.
On a positive note, German software company SAP enjoyed a boost, with its ADRs increasing by more than 7%. This surge followed their announcement earlier this year regarding a second round of a 10 billion euro share buyback, as noted by FactSet Street Account Services.
Energy stocks, on the other hand, followed oil prices downward. Following a U.S.-Iran agreement to halt mutual attacks for now, Chevron and ExxonMobil each experienced about a 1% drop, while APA and Devon Energy fell between 1% and 3%.
In biotech news, Forte Biosciences saw its shares jump roughly 40% after reaching an acquisition deal with Argenx from the Netherlands for $2.2 billion, which translates to $77 per share. This acquisition, set to finalize in the third quarter, represents a significant 40% premium over Forte’s recent closing price of $54.78 on Friday. However, Argenx’s shares on the U.S. market dipped about 2%.
Rivian Automotive, the electric vehicle manufacturer, experienced a 5% increase in its stock price after Piper Sandler upgraded their rating from neutral to overweight. The firm set a price target of $20, suggesting potential gains of 26% from Friday’s closing price. Analyst Alexander Potter praised Rivian’s recent delivery guidance and the successful launch of their R2 SUV.
Brown-Forman, known for Jack Daniel’s whiskey, climbed nearly 4% after turning down another unsolicited takeover bid of $32 per share from Sazerac. The Louisville-based company deemed the $15 billion offer “not feasible” and not in line with its vision for the future.
Shares of Baker Hughes increased by 6% as the company reported better-than-expected earnings for the second quarter. CEO Lorenzo Simonelli mentioned that they anticipate reaching the midpoint of their full-year forecast thanks to positive fundamentals amid ongoing uncertainties in the Middle East.
Conversely, Amkor Technology saw its shares decrease by 7% ahead of its quarterly earnings release later today. D-Wave Quantum reported a collaboration with AT&T, involving the use of quantum computers to enhance the telecom giant’s AI initiatives. Following the announcement, D-Wave’s stock rose by 5%, while other companies involved, like IonQ and Rigetti Computing, increased by 6% and 7%, respectively.
Lastly, MapLight Therapeutics faced a steep decline of 68%. The dip followed disappointing results from a Phase 2 trial for its schizophrenia treatment, where the once-daily dosage did not meet primary goals, and mild side effects were more common compared to the placebo.
