Pre-Market : Nvidia gains; Tencent Music falls: Stocks in news August 15

Pre-Market active stocks

Gainers

• Nvidia (NASDAQ:NVDA) shares climbed 1.2%, extending the previous session’s big rally, with the chipmaker benefiting from increased demand for AI and related components.

Losers

• Tencent Music (NYSE:TME) stock slumped 7.5% on another set of poor Chinese economic data, despite the Chinese music streaming company reporting a 5.5% increase in second-quarter sales year on year.
• The stock of Discover Financial (NYSE:DFS) fell 6.9% after the financial services company announced the resignation of its CEO, Roger Hochschild.
• Urban Outfitters (NASDAQ:URBN) stock fell 1.4%:- Citigroup downgraded Urban Outfitters (NASDAQ:URBN) shares to ‘neutral’ from ‘buy,’ saying it expects solid second-quarter earnings but that the risk/reward currently appears balanced.
• Tesla (NASDAQ:TSLA) stock dipped 1.2% after the electric carmaker announced cheaper variations of its Model S sedan and Model X SUV with lower driving ranges in the United States, aiming to boost sales as high financing costs limit demand for costly electric vehicles.
• General Motors (NYSE:GM) dipped 0.8% as Berkshire Hathaway (NYSE:BRKa) reduced its holding in the carmaker, but home builders DR Horton (NYSE:DHI) and Lennar (NYSE:LEN) jumped 2.1% and 0.9%, respectively, after the conglomerate disclosed new positions in the businesses.
• The shares of Home Depot (NYSE:HD) dipped 0.3% after the home improvement company reported a 2% year-over-year sales decline as customers remained cautious about large purchases and major projects. Nonetheless, the reduction was less than predicted, and the corporation launched a fresh $15 billion share repurchase program while keeping its yearly expectations unchanged.

MARKET MOVERS 

After-Market movers

GAINERS

• Stride Inc (NYSE:LRN) 9% higher; Q4 EPS of $1.01, $0.14 above average estimate of $0.87. Compared to the average expectation of $460.6 million, quarterly revenue was $483.49 million.
• H&R Block Inc (NYSE:HRB) 6% higher; Q4 EPS of $2.05, $0.17 greater than consensus expectation of $1.88. Quarterly revenue was $913 million, below the consensus estimate of $1.01 billion. H&R Block expects FY 2024 EPS of $4.10–$4.30, versus the consensus of $4.01. H&R Block expects Q1 2024 revenue of $3.53-3.85 billion, compared to $3.56 billion consensus. The corporation paid $0.32 per share quarterly, or $1.28 annually. The dividend is risen 10% from $0.29 per share.

LOSERS

Mercury Systems Inc (NASDAQ:MRCY) 11% down; Q4 EPS $0.11, $0.41 below consensus estimate of $0.52. Quarterly revenue was $252.3 million versus the consensus estimate of $278.81 million. Mercury Systems expects FY2024 EPS of $1.14-$1.48, below the average of $1.74. Mercury Systems expects FY2024 revenue of $950-1000 million versus the consensus of $1050 million.

MIDDAY MOVERS

GAINERS

• Tencent Music (NYSE:TME) stock rose 5.8% after another set of poor Chinese economic statistics, despite the Chinese music streaming giant reporting second-quarter sales up 5.5% year on year.
• The shares of Home Depot (NYSE:HD) climbed 0.3% after the home improvement company reported a 2% year-over-year sales fall as customers remained cautious about large purchases and major projects. Nonetheless, the reduction was less than predicted, and the corporation announced a new share repurchase program while keeping its yearly estimates unchanged.

LOSERS

• The stock of Discover Financial (NYSE:DFS) fell 10.3% after the financial services company announced the resignation of its CEO, Roger Hochschild.
• Tesla (NASDAQ:TSLA) stock slumped 2.3% after the electric carmaker announced cheaper variations of its Model S sedan and Model X SUV with lower driving ranges in the United States, aiming to boost sales as high financing costs limit demand for costly electric vehicles.
• General Motors (NYSE:GM) declined 2.2% as Berkshire Hathaway (NYSE:BRKa) reduced its holding in the carmaker, while home builders DR Horton (NYSE:DHI) and Lennar (NYSE:LEN) jumped 2.3% and 1.5%, respectively, after the conglomerate disclosed new positions in the businesses.Urban Outfitters (NASDAQ:URBN) stock fell 0.9%. Citigroup downgraded Urban Outfitters (NASDAQ:URBN) shares to ‘neutral’ from ‘buy,’ saying it expects solid second-quarter earnings but that the risk/reward currently appears balanced.

UPGRADES BY EXPERTS

Parsons was promoted twice at BofA.

On stronger-than-expected growth from both organic and inorganic prospects, BofA Securities upgraded Parsons (NYSE:PSN) to Buy from Underperform and upped its price objective to $65.00 from $46.00.

RBC Capital has upgraded Hexcel.

RBC Capital upped its price objective on Hexcel (NYSE:HXL) to $85.00 from $75.00 and upgraded it to Outperform from Sector Perform.

Shares of Nextdecade (NASDAQ:NEXT) rose more than 3% in pre-market trading today after Stifel upgraded the firm to Buy from Hold and boosted its price objective to $9.00 from $7.50.

Following the approval of the Rio Grande LNG phase 1 and the subsequent reduction in the stock price, the firm feels the risk-reward ratio is favourably skewed.Janney raised Consolidated Water (NASDAQ:CWCO) from Neutral to Buy. As a result, shares rose 13% yesterday, adding to an 11% gain on Friday after the company reported better-than-expected Q2 profits.

DOWNGRADES BY EXPERTS

Citi downgraded Urban Outfitters (NASDAQ:URBN) from Buy to Neutral, with a $40.00 price objective (down from $36.00).

BofA Securities downgraded Keysight Technologies to Underperform.

Before the impending Q3 earnings announcement on Thursday, BofA Securities downgraded Keysight Technologies (NYSE:KEYS) to Underperform from Neutral and reduced its price objective to $148.00 from $163.00, citing that Keysight’s order patterns are likely to worsen before they improve.

RBC Capital downgraded Design Therapeutics (NASDAQ:DSGN) from Outperform to Sector Perform and reduced its price objective from $23.00 to $7.00. Meanwhile, SVB MoffettNathanson reduced its price target from $22.00 to $6.00, down from Outperform.

Truist Securities downgraded Avid Technology (NASDAQ:AVID) from Buy to Hold and reduced its price objective from $45.00 to $27.05.

Following its Q2 earnings statement last week, the company was downgraded by two other firms, Northland Capital Markets and B.Riley.

Earnings Calendar

Wednesday, August 16

Cisco Systems (CSCO), TJX Companies (TJX), Synopsys Inc. (SNPS), Target Corp. (TGT), JD.com (JD), Amcor (AMCR), and Wolfspeed (WOLF) 

Tuesday, August 15

Home Depot (HD), Agilent Technologies (A), Sea Limited (SE), Nu Holdings (NU), Cardinal Health (CAH), Legend Biotech (LEGN), Tencent Music Entertainment Group (TME), CAVA Group (CAVA), and H&R Block (HRB) 

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