Wall Street tanked in a broad sell-off on Thursday, as investor risk appetite was dashed by worries that the Federal Reserve's restrictive monetary policy will remain in place for longer than anticipated.
Market Snapshot
The Dow Jones Industrial Average fell 370.46 points, or 1.08%, to 34,070.42, the S&P 500 lost 72.2 points, or 1.64%, to 4,330 and the Nasdaq Composite dropped 245.14 points, or 1.82%, to 13,223.99.
Market Movers
Splunk (ticker: SPLK) shares soared 21% to $144.43 after networking equipment maker Cisco Systems (CSCO) said it would acquire the cybersecurity and data analytics software company for $157 a share in cash. The deal has an enterprise value of about $28 billion. Cisco stock fell 3.9%.
Charles River Laboratories (CRL) fell 5% after the contract pharmaceutical research company slashed its three-year revenue and margin targets but maintained its fiscal-year guidance.
FedEx (FDX) shares rose 4.5% after the shipping company reported fiscal first-quarter earnings that beat analysts’ estimates. Operating margins improved as management cut costs. FedEx also boosted its fiscal-year guidance, saying it expects an adjusted profit of $17 to $18.50 a share, up from its previous forecast of $16.50 to $18.50. Rival United Parcel Service ( UPS ) was down 1.4%.
Travere Therapeutics (TVTX) shares plummeted 41% after the biopharmaceutical company said its kidney-disease treatment had mixed results in a trial. William Blair downgraded the stock to Market Perform from Outperform.
News Corp (NWSA) and Fox (FOX) gained 1.3% and 3%, respectively, following the announcement that Rupert Murdoch was leaving his role as chairman of both companies. His son Lachlan Murdoch will take over.
D.R. Horton (DHI) and KB Home (KBH) fell 3.7% and 4.3%, respectively, as data showed home prices climbed in August while sales dwindled.
Separately, D.R. Horton named Paul J. Romanowski as president and chief executive, effective Oct. 1. He will succeed David V. Auld, who will become executive vice chairman of the board. KB Home, meanwhile, posted better-than-expected fiscal third-quarter earnings and raised its fiscal-year revenue forecast.
Broadcom (AVGO) was down 2.7% following a report that said Broadcom’s long-term deal to supply artificial-intelligence chips to Alphabet ‘s Google (GOOGL) was in jeopardy. Google said it sees “no change in our engagement” with the company.
CrowdStrike Holdings (CRWD) fell 0.8% after the cybersecurity company announced at a briefing at Fal.Con that it was raising its new target model of subscription gross margin to 82%-85% of revenue, up 400 basis points. It raised its operating margin target to 28% to 32%, up 900 basis points. The company said the time frame for meeting those targets was three to five years.
Klaviyo (KVYO) closed up 2.9% to $33.72. The Boston-based marketing-software company had opened for trading Wednesday at $36.75, up 23% from the initial offering price of $30.
Vinfast crashed 8.38% as it reported a second-quarter loss of half a billion dollars, saying it delivered more than 9,000 electric vehicles globally for sales of about $315 million in the period.
Cheche Group tumbled another 40.6%. The company was in collaboration with Prime Impact Acquisition, successfully completed their merger and began trading on the Nasdaq under the symbol CCG on Monday. The stock price skyrocketed to over $200.00 at one stage, concluding the day with a remarkable increase of over 500%.
Market News
Scholastic Corp (NASDAQ:SCHL) 12% LOWER; reported Q1 EPS of ($2.20), $1.00 worse than the analyst estimate of ($1.20). Revenue for the quarter came in at $228.5 million versus the consensus estimate of $272.52M.
Highpeak Energy Acquisition Corp (NASDAQ:HPK) 7% HIGHER; CEO buys over $8M in stock
United States Steel Corporation (NYSE:X) 2% HIGHER; Canada's Stelco Holdings is said to weigh a bid for U.S. Steel, according to Bloomberg, joining other bidders.
