Market Update: Key Stocks in Focus as Trading Begins

On July 22, 2024, several notable companies are making headlines in premarket trading. CrowdStrike, a cybersecurity firm, saw its shares drop by 4% following a downgrade from Guggenheim, which shifted its rating from buy to neutral. The downgrade was attributed to concerns that the company may not fully recover from a recent global outage. In contrast, Nvidia's stock rose by 2% after reports emerged that the company is developing a version of its new Blackwell chips tailored for the Chinese market. This new product is expected to comply with existing U.S. export controls, indicating Nvidia's strategic move to expand its market presence while adhering to regulatory requirements. Bank of America experienced a decline of over 1% after it was revealed that Warren Buffett's Berkshire Hathaway sold 33.9 million shares of the bank for nearly $1.5 billion. Despite the sale, Berkshire remains the largest shareholder with a 10.8% stake, suggesting a profit-taking strategy as Bank of America’s stock has surged 27.4% this year. Verizon's stock fell by 3% following disappointing quarterly revenue results, although its adjusted earnings per share met expectations. Meanwhile, Abercrombie & Fitch saw a more than 3% increase in its stock price after JPMorgan upgraded its rating, citing strong demand driven by recent marketing improvements. Additionally, Truist Financial's stock slipped 1% due to a decline in second-quarter profits, while Apple shares gained 1% after Wells Fargo raised its price target, anticipating a significant upgrade cycle for the iPhone.