Stocks experienced a decline on Tuesday due to increasing bond yields. The 10-year Treasury yield reached 4.801%, its highest level since 2007. HP Inc. saw a rise in its stock price after being upgraded to Buy by BofA, citing an improving PC market backdrop and tighter cost controls. However, Warren Buffett’s Berkshire Hathaway continued to reduce its stake in HP by selling 5.1 million shares. WK Kellogg received a Sell rating from Goldman Sachs and fell 16%, following its spinout from the former Kellogg. McCormick reported fiscal third-quarter earnings that matched estimates but fell short in terms of revenue, causing a drop in stock price.
Oddity Tech predicted that its third quarter would be the strongest ever, with expected net revenue growth of 29-31%. Truist also upgraded the recommendation on Oddity to Buy. Eli Lilly agreed to acquire radiopharmaceutical company Point Biopharma Global for $1.4 billion, causing shares of Point Biopharma to surge. Warby Parker experienced a rise in stock price after being upgraded to Outperform by Evercore ISI. Clean Energy Fuels rose after being upgraded by Raymond James to Strong Buy. However, Airbnb was downgraded by KeyBanc as analysts anticipate a potential deceleration in revenue growth.
Ford and General Motors have laid off an additional 500 workers combined due to the ongoing strike by the United Auto Workers. GM received a counteroffer from the UAW in response to the company’s proposal, though significant gaps remain. Krispy Kreme announced that it is exploring strategic alternatives for Insomnia Cookies, including an all-cash sale. The company anticipates revenue of approximately $230 million in fiscal 2023.
In summary, stocks slumped on Tuesday due to rising bond yields. Several companies experienced stock price changes as a result of upgrades, downgrades, acquisitions, and layoffs.