Wednesday's Market Minute
- All three major U.S. stock market indices fell Wednesday.
- Wells Fargo is bullish on Nvidia, more than doubling the chipmaker's price target to $315 from $140.
- Constellation Brands boosts stake in Canopy Growth
The three major U.S. stock market indexes fell Wednesday, with the Nasdaq declining for the third time in four days and the Dow Jones Industrial Average sliding more than 300 points at one point during the morning's trading.
The Turkish lira rebounded 6% against the dollar Wednesday after the country responded to U.S. tariffs by doubling duties on U.S. imports, including tobacco, alcohol, and cars. The lira has declined nearly 40% against the dollar this year.
The U.S. dollar rose 0.2% against a basket of six global currencies to trade at a 14-month high of 96.90 as investors looked for a safe haven. The euro, meanwhile, the second-largest component of the dollar index basket, hit a 14-month low of 1.1312 overnight amid concern about the region's banking sector's exposure to the Turkish economy.
Action Alerts PLUS holding Apple Inc. (AAPL) has been good to Warren Buffett's Berkshire Hathaway (BRK.B) . The Oracle of Omaha's investment group added 12.4 million shares of Apple to its portfolio in the second quarter, bringing its total stake in the company to 251.96 million shares. The value of those shares reached $52.8 billion as of Tuesday's market close.
Apple shares rose 0.25% to close at $210.28 after being down earlier in the daay.
Amid falling alcohol sales, Constellation Brands (STZ) is being proactive in investing in consumers' other vices. The maker of Corona beer made an additional $4 billion investment in cannabis company Canopy Growth (CGC) . Constellation now owns 38% of the Canadian company.
Constellation shares fell 6% while Canopy shares rose 30%.
Shares of Macy's Corp. (M) fell 16% to $35.15 Wednesday morning after the retailer reported soft quarterly same-store sales. Comparable store sales rose 0.5% in the quarter, missing analysts' estimates of 0.7% growth. Revenue for the quarter fell 1.1% to $5.57 billion, barely topping analysts' $5.55 billion expectations.
Shares of fellow AAP holding Nvidia Corp. (NVDA) were lower after analysts at Wells Fargo more than doubled the company's price target to $315 per share from $140 per share while also increasing its rating to "outperform" from "underperform."
"We are positive on NVIDIA's competitive positioning for gaming and expanding growth opportunities in data center, HPC, and emerging / expanding AI opportunities (autonomous vehicles, healthcare, robotics, etc.)," analyst Aaron Rakers said. "NVIDIA is well positioned to continue to leverage / expand its platform story."
Copper prices fell another 2.7% to $2.609 a pound on the Comex division of the New York Mercantile Exchange Wednesday, entering bear market territory after also falling to a 13-month low on Tuesday. Copper prices are now down 20% from the four-year highs that were reached in June due in part to another round of shaky economic news coming out of China.
The stronger U.S. dollar helped pull oil futures lower, with investors also citing the prospect for weaker China demand into the second half of the year as driving the day's bearish narrative, although looming U.S. sanctions on the sale of Iranian crude, set to begin in November, are keeping the session's declines in check.
Brent crude contracts for October delivery, the global benchmark, were seen 62 cents lower from their Tuesday close in New York and changing hands at $71.84 per barrel in early trading. WTI contracts for September, which are more tightly-linked to U.S. gasoline prices, were marked 72 cents lower at $66.32.