Amid a cautious stock market environment, semiconductor stocks garnered attention as the Semiconductor Industry Association reported the first increase in global chip sales in over a year. Sales in November 2023 rose 5.3% year-over-year to $48 billion, signaling a potential rebound in the sector. The news comes as Wall Street braces for the upcoming consumer price inflation report and the start of earnings season.
Bitcoin and cryptocurrency-related stocks experienced volatility following a false announcement of a Bitcoin ETF approval due to a compromised SEC account. The incident led to a temporary spike in Bitcoin's price, followed by a decline. Stocks affected by the confusion included Cipher Mining (CIFR, Financial), Marathon Digital (MARA, Financial), Coinbase Global (COIN, Financial), and Bit Digital (BTBT, Financial), all of which saw pre-market declines.
Financial stocks faced downgrades from BMO Capital Markets, citing vulnerabilities to increasing net charge-off rates. American Express (AXP, Financial) was downgraded to Underweight, while Capital One Financial (COF, Financial), Synchrony Financial (SYF, Financial), Ally Financial (ALLY, Financial), Citigroup (C, Financial), and Goldman Sachs (GS, Financial) were downgraded to Market Perform. The downgrades reflect concerns over deteriorating credit quality and regulatory pressures.
Apple suppliers, including Qualcomm (QCOM, Financial), Broadcom (AVGO, Financial), and Skyworks Solutions (SWKS, Financial), were in focus as KeyBanc Capital Markets reported a "slightly negative" outlook for Apple's supply chain. Despite solid iPhone 15 sales, the report indicated weaker-than-seasonal sales and higher inventories.
Walgreens Boots Alliance (WBA, Financial) discussed its strategy to develop its healthcare business, leveraging its brand and physical footprint. The company's new CEO, Tim Wentworth, highlighted the recent acquisition of primary care provider Summit Health and the doubling of revenue in its U.S. healthcare segment.
Shipping rates continue to rise due to diversions around the Horn of Africa, with the average cost for 40-foot containers nearly doubling since the onset of attacks by Houthi rebels. The disruptions are expected to complicate shipping ahead of the Chinese New Year.
3M Health Care's Medical Solutions Division (MMM, Financial) received a $34.2 million contract from the U.S. Army Medical Research Acquisition Activity to develop new solutions for infection prevention and wound management. The program aims to address treatment strategies in austere and mass casualty settings.
Amarin (AMRN, Financial) shares surged after the company estimated higher-than-expected Q4 revenues and announced a share buyback program. The positive financial update reflects six consecutive quarters of cash positive or neutral operations.
Tilray Brands (TLRY, Financial) announced an agreement to acquire a promissory note from its joint venture partner, impacting its financial position and share issuance. The move comes as the company reported Q2 FY24 earnings, with revenue falling short of expectations.
W. P. Carey Inc (WPC, Financial) reported an investment volume of approximately $1.3 billion for 2023, with a focus on both North American and European markets. The company plans to use the proceeds from these investments for corporate purposes and debt repayment.
Chatham Lodging Trust (CLDT, Financial) completed the sale of a Hilton Garden Inn property, with plans to use the proceeds for corporate investments and debt repayment.
Taiwan Semiconductor Manufacturing (TSM, Financial) reported a decrease in net revenue for December 2023, with a year-over-year decline of 8.4%. The company is set to release detailed earnings later in the month, providing further insight into its financial performance.
