Trending stocks this week as turbulent week come to an end
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U.S. equity futures were hammered this week, with losses cascading across tech shares, as fears of a looming recession intensified. The downturn was triggered by last week’s weak U.S. payroll report combined with rising jobless claims, with investors worrying that the Federal Reserve has been slow to cut interest rates in time to prevent a recession.
Monday saw a dramatic selloff in stocks that capped a three-week, $6.4 trillion retreat in equities globally. Megacap technology stocks bore the brunt of the selloff, with chipmaker Nvidia (NVDA) falling over 6% and Apple (AAPL) down ~5% on Monday. A surprise interest rate hike by the Bank of Japan (BoJ) in late July and news that Berkshire’s Warren Buffett sold off half of his massive stake in Apple (AAPL) also added to the pressure.
This turbulent week ended in a mildly positive fashion nonetheless, with the benchmark S&P 500 (SP500) index and Nasdaq Composite (COMP:IND) up over 3% and 4%, respectively, for the week.
As the markets tried to revive and the Q2 earnings season continued in full swing, these were some of the trending stocks this week:
Apple (AAPL) shares were in focus as Warren Buffett’s Berkshire Hathaway (NYSE:BRK.A) (NYSE:BRK.B) cut its stake in the company by nearly 50% as part of a massive second-quarter selling spree. Shares fell around 5% on Monday but gradually recovered over the week to close 8.6% higher. Despite the dramatic sales and a delay in the company’s much-hyped AI rollout, analysts urge Apple investors to remain calm.
Lumen Technologies (LUMN) advanced a whopping ~114% over the week after announcing it had secured $5B in new business to secure fiber service capacity. The company has landed multi-year deals with Microsoft (MSFT) and Corning (GLW), that has helped the stock rise a staggering 350% since early July and erase all of its year-to-date losses. It also reported Q2 results on Tuesday.
Super Micro Computer (SMCI) fell 5% over the week after the artificial intelligence server company reported mixed fiscal fourth-quarter results and announced a stock split. BofA downgraded the stock to Neutral from Buy, following the results, noting that margins would remain pressured despite strong revenues, which rose more than 100% year-over-year to $5.31B in the quarter.
Eli Lilly (LLY) stock soared ~16% after a stellar Q2 performance that topped analyst expectations. The drugmaker also raised its full-year outlook, driven primarily by success of its blockbuster weight loss products. “Mounjaro, Zepbound, and Verzenio led our strong financial performance in the second quarter as we advanced our manufacturing expansion agenda,” CEO David Ricks remarked.
Intel (INTC) shares remained under pressure following its second quarter results last week that came below estimates. The tech giant announced a 15% workforce reduction and the suspension of its dividend, aiming to cut costs and manage its $48B debt load, reflecting significant financial strain. Shares fell over 2% this week, drawing sharp reactions from analysts who also raised concerns over the firm’s margins. Adding to the pressure, shareholders filed a lawsuit against the company, alleging Intel had misled them regarding its nascent foundry business.
Palantir Technologies (PLTR) surged 38% led by strong Q2 results and announcement of a deal with Microsoft (MSFT) to provide AI services for the defense and intelligence communities, which Wedbush Securities called potentially “game changing” and likely to be a “launching pad” for Palantir’s Artificial Intelligence Platform.
Medical Properties Trust (MPW) came in spotlight, as Q2 earnings met the average analyst estimate, but the company agreed to limit its cash dividend in a credit amendment. “MPT took decisive action to generate more than $2.5B of liquidity year-to-date — well above our initial target for the year — as well as to expedite debt paydown, said chairman, president and CEO Edward K. Aldag, Jr.
Airbnb (ABNB) shares fell more than 7% on the week as the company’s weak outlook underscored consumers’ reluctance to book lodging in advance amid a softening economic environment. The lodging platform forecasts revenue to increase 8%-10% to $3.67B-$3.7B in Q3, below expectations of $3.84B due to a sequential moderation in the year-over-year growth of Nights and Experiences Booked relative to Q2.