The stock market is trading flat midday after ticking higher in the morning. The S&P 500 is down 0.2%, and the tech-heavy Nasdaq Composite lost 0.8%. The Dow Jones Industrial Average added 2.3%. The Russell 2000 Index rose 0.4%.
Trending stocks:
The semiconductor sector is seeing an overall drop. Nvidia is down 2.5% and now is trading around $126. Broadcom lost 3.7% and became one of the biggest S&P losers midday. ASML, AMD, and Micron fell 2%, 2.6%, and 3%, respectively.
Investors are waiting for Nvidia’s earnings report, which will be published this Wednesday, August 28. Other important financial results this week include Nordstrom (Tuesday), Salesforce (Wednesday), and Best Buy (Thursday).
Temu CEO expects a potential short-term decline in profitability.
S&P 500 big stock movers today
Five S&P 500 stocks making big midday moves are:
Dayforce Inc (DAY) +3.% Warner Bros Discovery Inc (WBD) +3.2% First Solar Inc (FSLR) +3.1% Nucor Corp (NUE) +2.8% Gen Digital Inc GEN +2.5%
The worst-performing five S&P 500 stocks with the largest midday drop are:
Super Micro Computer Inc (SMCI) -7.7% Broadcom Inc (AVGO) -3.7% Micron Technology Inc (MU) -3.2% Tesla Inc (TSLA) -3.1% Cadence Design Systems Inc (CDNS) -3.0%
Stocks also worth noting include:
MIRA Pharmaceuticals MIRA +15%Planet Fitness (PLNT) +1.4%PDD Holdings (PDD) -28.6%Alibaba (BABA) -4.0%Nvidia (NVDA) -2.5%
Temu-parent PDD plunges on revenue miss
Temu’s parent company, PDD Holdings, plummeted nearly 30% after posting disappointing second-quarter results.
The China-based bargain e-commerce retailer posted revenue of 97.06 billion yuan (US$113,355.8 million), up 86% yet falling short of the 100.17 billion yuan expected by analysts. Earnings per share came in at 23.24 yuan, or $3.2, topping the forecast of 20.43 yuan.
Related: Temu lawsuit says low prices on app covers its harmful intentions
“We see many challenges ahead,” said PDD CEO Lei Chen, “We are prepared to accept short-term sacrifices and potential decline in profitability.”
Chinese consumers are trimming their spending due to a weak economy and high unemployment rates.
PDD’s rival Alibaba fell short of market expectations for revenue earlier this month, while JD.com posted a modest quarterly revenue growth of just 1.2%.
Planet Fitness ticks higher after analyst rating
Planet Fitness stock added 1.4% after Baird named it a “Bullish Fresh Pick” through year-end, keeping an outperform rating with a $92 price target.
‘Planet Fitness is an attractive idea for a slowing growth environment,” the analyst said in a research note. The firm believes Planet’s value and franchise model will stay resilient, with potential boosts from lower interest rates and building costs.
Related: Planet Fitness membership change prompts new stock price targets
Earlier this month, Macquarie raised Planet’s price target to $91 from $76 and kept an outperform rating.
“The company reported a Q2 beat, driven by the benefit of timing of equipment replacement pulled forward with promotional activity driving franchisees to reequip,” the analyst said, adding that Planet Fitness could benefit from pricing power and boost earnings.
Planet Fitness reported earnings of $0.71 per share on revenue of $300.94 million for the second quarter, both higher than analysts’ estimates.
Mira surges after medical breakthrough
MIRA Pharmaceuticals stock soared 15% after announcing a breakthrough in neuropathic pain treatment.
MIRA released a study on August 26 showing that low oral doses of Ketamir-2 resulted in substantial pain relief lasting between 14 and 22 days after the operation, while higher doses achieved a full normalization of pain thresholds, reversing neuropathic pain by 100%.
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MIRA is undertaking further research to assess Ketamir-2’s potential for treating cancer-induced depression and neuropathic pain.
“Neuropathic pain is a debilitating condition that imposes an enormous burden on patients, often leaving them with limited and ineffective treatment options,” said CEO Erez Aminov, “These findings suggest that Ketamir-2 could offer patients a more accessible, safer, and effective treatment option, potentially transforming the standard of care for neuropathic pain.”
Related: Veteran fund manager sees world of pain coming for stocks
