Moody’s Investors Service has recently downgraded the debt ratings of several small and midsize U.S. banks, raising concerns in the stock market. Additionally, credit ratings for six major U.S. banks, including U.S. Bancorp and State Street, may also face downgrades.
U.S. Bancorp and State Street Feel the Impact
Following Moody’s review for downgrade, U.S. Bancorp (USB) and State Street (STT) have both experienced a decline of 1.2% in their credit ratings. Other major banks, such as Bank of New York Mellon (BK), Northern Trust (NTRS), Cullen/Frost Bankers (CFR), and Truist Financial (TFC), are also under review for potential downgrades.
Debt Rating Downgrades for Smaller Banks
Furthermore, Commerce Bancshares (CBSH) and BOK Financial (BOKF), among other smaller banks, have already seen their debt ratings downgraded as a result of the recent developments.
Palantir Technologies: Positive Earnings Report and Stock Repurchase Program
Palantir Technologies (PLTR) has managed to retain stability amidst market fluctuations. The company reported second-quarter adjusted earnings and revenue that met analysts’ expectations, prompting an increase of 0.3% in premarket trading. Additionally, Palantir announced its intention to initiate a stock buyback program worth $1 billion. This move marks the first repurchase program by Palantir since its shares began trading in 2020.
Lucid Remains on Track Despite Quarterly Loss
Lucid (LCID), an electric-vehicle manufacturer, reported a slightly wider loss than expected in the second quarter, along with sales that missed estimates. Despite this setback, the company remains optimistic and saw a 3.1% rise in premarket trading. Lucid is committed to meeting its production goal of over 10,000 units in 2023.
Chegg Reports Strong Q2 Sales and Unveils AI-Focused Strategy
Chegg (CHGG) saw a 24% surge in its stock price after the online learning software company revealed better-than-expected second-quarter sales and introduced its new AI-focused strategy. CEO Dan Rosensweig announced that Chegg had recently launched the beta version of its generative AI experience in May, which received highly positive feedback from users.
Paramount Global Agrees to Sell Simon & Schuster for $1.62 Billion
Paramount Global (PARA) experienced a 4% increase in its share price following the news that it had reached an agreement to sell book publisher Simon & Schuster to KKR for a sum of $1.62 billion in cash. Additionally, the media giant reported second-quarter adjusted earnings that surpassed analysts’ estimates.
RingCentral Announces Leadership Transition
Cloud-based telecommunications provider RingCentral (RNG) revealed that its founder, Vlad Shmunis, will be stepping down as chief executive later this month and assuming the role of executive chairman. Tarek Robbiati, previously the chief financial officer at Hewlett Packard Enterprise (HPE), will take over as the new CEO. As a result of this announcement, RingCentral shares experienced a 13% decline.
Beyond Meat Faces Revenue Decline and Adjusts Forecast
Beyond Meat (BYND) saw a 16% drop in its stock price after reporting a 30% decrease in second-quarter revenue, totaling $102.1 million. The plant-based meat company also revised its revenue forecast for the year.
International Flavors & Fragrances Slashes Sales Forecast
International Flavors & Fragrances (IFF) witnessed a steep decline of 21% in its share price following the announcement that it was lowering its sales forecast for the year.
Upcoming Earnings Reports on Tuesday
Several companies are expected to release their earnings reports on Tuesday, including Eli Lilly (LLY), United Parcel Service (UPS), Zoetis (ZTS), Li Auto (LI), Datadog (DDOG), Rivian Automotive (RIVN), Take-Two Interactive (TTWO), Twilio (TWLO), Lyft (LYFT), and AMC Entertainment (AMC).