Why Did Stocks Drop Today? Let’s Find Out With Today’s Stock Movers from FedEx To Klaviyo.
Sep 22, 2023
Let’s find out together: “Why did stocks drop today?” Stocks dipped on Thursday as the Federal Reserve kept interest rates unchanged but said another quarter-point rate hike may occur this year. The central bank also forecasted rate decreases in 2024, albeit not as many as previously. In an unexpected action, the Bank of England kept interest rates steady.
These stocks were moving:
Splunk (SPLK) shares jumped 21% to $144.43 after networking equipment maker Cisco Systems (CSCO) announced a $157-per-share cash acquisition of the cybersecurity and data analytics software business. The transaction is worth around $28 billion. Cisco’s shares dropped 3.9%.
Charles River Laboratories (CRL) slumped 5% after lowering its three-year sales and profitability forecasts but maintaining fiscal-year projections.
FedEx (FDX) shares increased 4.5% after the transportation giant posted fiscal first-quarter results that exceeded analysts’ expectations. As management decreased costs, operating margins improved. FedEx also increased its fiscal-year projection, saying it anticipates an adjusted profit of $17 to $18.50 per share, up from $16.50 to $18.50. UPS (United Parcel Service) was down 1.4%.
Travere Therapeutics (TVTX) shares fell 41% after the biopharmaceutical firm reported mixed findings in a study for its kidney-disease medication. William Blair downgraded the stock from Outperform to Market Perform.
Following the revelation that Rupert Murdoch will step down as chairman of both firms, News Corp (NWSA) and Fox (FOX) gained 1.3% and 3%, respectively. Lachlan Murdoch, his son, will take control.
D.R. Horton (DHI) and KB house (KBH) declined 3.7% and 4.3%, respectively, as statistics indicated house prices increased while sales decreased in August.
Separately, D.R. Horton has appointed Paul J. Romanowski as president and CEO, beginning Oct. 1. He will take over for David V. Auld, who will be promoted to executive vice chairman of the board. Meanwhile, KB Home reported higher-than-expected fiscal third-quarter results and increased its fiscal-year revenue projection.
Broadcom (AVGO) fell 2.7% after a report indicated the company’s long-term arrangement to sell artificial intelligence chips to Alphabet’s Google (GOOGL) was in peril. Google stated there has been “no change in our engagement” with the firm.
CrowdStrike Holdings (CRWD) slumped 0.8% after the cybersecurity firm revealed during a Fal.Con briefing that it was expanding its new goal model of subscription gross margin to 82%-85% of sales, an increase of 400 basis points. It increased its operating margin objective from 28% to 32%, a 900 basis point increase. The corporation stated that attaining those aims would take three to five years.Klaviyo (KVYO) finished at $33.72, up 2.9%. The Boston-based marketing software firm began trading Wednesday at $36.75, up 23% from its initial offering price of $30. So you now have an answer to the question, “Why did stocks drop today?”