Stocks are mixed amid a mish-mash of earnings-related news. Gold and silver are mixed as well, while crude oil is modestly lower. The dollar is selling off again.
Beleaguered shareholders at UnitedHealth Group (UNH) are finally catching a break thanks to the Warren Buffett/Berkshire Hathaway Inc. (BRK.A) effect. Berkshire just reported a new five million-share stake in UNH worth about $1.57 billion, news that caused UNH to surge more than 10%. The giant health insurer has been under fire due to federal criminal and civil investigations, rising medical costs, and slumping profit prospects.
On the flip side, Applied Materials Inc. (AMAT) shares are plunging more than 10% after the chipmaking equipment giant warned that sales and earnings wouldn’t meet targets. AMAT expects $6.7 billion in revenue and $2.11 in earnings per share in the fiscal fourth quarter; analysts expected $7.3 billion and $2.38, respectively. The company cited reduced Chinese demand and delays in customer orders fueled by tariffs and economic uncertainty.
UNH, AMAT (24-Hr. % Change)
Source: Yahoo Finance
Speaking of China, its economy is slowing sharply. July reports showed fixed-income investment dropping the most in any month since 2020, when Covid hammered the Chinese economy. Industrial activity came in at an eight-month low, while retail sales cooled. The government hasn’t responded with fresh waves of stimulus money…yet. But that has been the card it’s played in the past.
Finally, Initial Public Offering (IPO) activity continues to ramp up – even in what is usually a seasonally slow period for share sales. Markets have absorbed 12 IPOs of at least $50 million so far this month. Those deals have raised a collective $2.9 billion. The long-term average for August? Nine IPOs and $1.5 billion raised, according to Renaissance Capital.
The latest to hit the market were crypto exchange operator Bullish (BLSH) and Miami International Holdings Inc. (MIAX), operator of the MIAX exchanges for options, futures, and derivatives trading. Shares of both firms rose sharply from their IPO prices. Other high-profile offerings from Circle Internet Group (CRCL) and Figma Inc. (FIG) have helped whip up investor sentiment for IPOs following a long drought for new offerings.
