Several companies were making headlines before the bell, with Apple seeing a decline of 1.4% after Jefferies downgraded the tech giant to hold from buy. The firm cited weaker-than-expected initial demand for the iPhone 16 and 17, stating that near-term expectations were too high. NXP Semiconductor, on the other hand, saw shares rise by 0.8% after UBS upgraded the chipmaker to buy from neutral, citing healthy inventory levels and “best-in-class margin resilience.”
Amazon’s shares slumped nearly 2% after Wells Fargo downgraded the e-commerce company to equal weight from overweight, citing slowing growth and competition from Walmart. Pfizer caught the attention of activist investor Starboard Value, who took a roughly $1 billion stake in the struggling company. This news caused Pfizer’s shares to rise nearly 3%. KB Home, a homebuilder stock, slipped 2% after being downgraded by Wells Fargo to underperform from equal weight, with the bank stating that KB Home could lag behind peers in the next phase of the cycle.
Coty, a beauty company, jumped 2.5% following an upgrade to buy from hold by Jefferies. Analyst Ashley Helgans highlighted ongoing growth in the fragrance segment and an attractive valuation. Hershey, the chocolate maker, dipped 1% after receiving downgrades to neutral and market perform from UBS and Bernstein, respectively. UBS cited a challenging 2025 outlook on cocoa inflation, while Bernstein underscored headwinds from GLP-1 drugs. American Express saw a decline of more than 1% after JPMorgan downgraded shares to neutral from overweight, stating that the stock was trading at an expensive valuation with limited upside potential.
Wynn Resorts gained 2.5% following its announcement that it received the first commercial gaming operator license in the United Arab Emirates. Ally Financial also saw a 1.4% increase in its stock price after a JPMorgan upgrade to overweight from neutral, citing an appealing risk-to-reward ratio. Overall, these companies were experiencing a mix of upgrades and downgrades, with various factors such as market competition, investor interest, and company performance influencing their stock prices and outlook.
