7 Hours Ago
CrowdStrike shares tumble on news that Delta is seeking damages after outage
Delta has hired attorney David Boies to seek damages against CrowdStrike and Microsoft after an outage earlier this month resulted in thousands of flight cancellations, CNBC reported.
News of the development, reported by CNBC’s Phil LeBeau, sent shares of CrowdStrike tumbling 5%. Microsoft shares inched lower by less than 1%.
The outage – which occurred on July 19 after a software update from CrowdStrike led to a massive disruption of Microsoft systems – cost Delta an estimated $350 million to $500 million.
Shares of CrowdStrike are off more than 32% in July.
Read more details from CNBC’s Jordan Novet and Ari Levy here.
—Darla Mercado
8 Hours Ago
U.S. homebuilding stocks growing ‘more squeezable’ as buying momentum mounts, S3 Partners says
Homebuilding stocks “should become more squeezable as increased consumer housing demand drives long buying momentum and stock prices,” according to a recent note from S3 Partners’ managing director of predictive analytics Ihor Dusaniwsky.
That trend has probably already begun, with S3 observing “a trickle of short covering over the last seven days with $40 million of Homebuilding shares bought-to-cover.”
“We should see a reversal of the short selling activity we have seen over the last 30 days due to the large mark-to-market losses short sellers have incurred,” Dusaniwsky wrote. Short positions in homebuilding stocks have lost $959 million on a year-to-date, mark-to-market basis, or almost 18%, S3 said. More than 60% “of every Homebuilding shorted stock was an unprofitable trade in 2024,” the researcher, which specializes in tracking short sales, said.
The $2 billion SPDR S&P Homebuilders ETF is higher by more than 16% so far in July and nearly 23% in 2024. The S&P 500 is little changed in July and ahead 14.5% in 2024.
See Chart…
SPDR S&P Homebuilders ETF in 2024.
8 Hours Ago
Tech stocks could find support ahead, UBS says
The tech sector may soon find some support, according to UBS.
Mark Haefele, investment chief at UBS Global Wealth Management, anticipates that the recent market volatility could continue as investors continue to dump tech stocks for other interest rate sensitive assets. The Nasdaq Composite is the lone major index headed for a losing month.
However, he added the recent pullback could soon result in an attractive entry point for the sector. Over the past decade in markets history, there has been at least one 10% correction in global tech every year, and bounce back in the six months afterward. The one notable exception is during the 2017 bull market.
“We think the tech sector should find support in the coming weeks and resume its leadership,” Haefele wrote. “In fact, the recent pullback creates a reentry opportunity, in our view, especially for those companies with strong earnings growth visibility.”
— Sarah Min
9 Hours Ago
Investors are punishing stocks that miss earnings more than normal
Companies with disappointing quarterly results are getting punished more than usual this earnings season.
Second-quarter earnings misses have resulted in an average 3.8% decline for a stock from two days before the quarterly release through the two days after the report comes out, according to FactSet. That is compared to the five-year average price decrease of 2.3% during this same window for companies that disappointed.
The ones that beat Wall Street expectations have been rewarded less than average. They are seeing only a 0.3% rise during that same period, per FactSet. That is compared to a five-year average price increase of 1%, FactSet said.
— Yun Li
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