Major stock markets were down on Thursday, with the Dow Jones Industrial Average losing over 1% and the S&P 500 falling by 0.75%. The Nasdaq Composite was the only major index to close in the green, adding 0.5%.
One of the biggest losers of the day was Clorox Co. (CLX), whose shares fell by 5.9%. The company cut its outlook for the fiscal year following disruptions caused by a cyberattack first reported in August. Clorox said that the cyberattack had a “material impact” on its business, including its ability to produce and ship products.
Shares of Rivian Automotive Inc. (RIVN) also slid on Thursday, falling by 18.8%. The electric-vehicle maker said that it plans to offer $1.5 billion worth of convertible senior notes due in 2030. Rivian also issued preliminary sales estimates for the third quarter that met Wall Street’s expectations. However, investors were apparently disappointed by the lack of any upside surprises.
BlackBerry Ltd. (BB) shares fell by 9.8% on Thursday, despite the company’s announcement that it plans to spin off its internet-of-things business in an initial public offering. The stock had risen in Wednesday’s extended session after the news was announced, but investors appear to be taking a wait-and-see approach before the IPO.
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Other notable decliners on Thursday included Exxon Mobil Corp. (XOM), whose shares fell by 2%, and United Parcel Service Inc. (UPS), whose shares fell by 1.7%.
On the bright side, there were a few notable gainers on Thursday. Lamb Weston Holdings Inc. (LW) shares rose by 9.4% after the producer of frozen potato products posted a fiscal first-quarter profit that beat expectations by a wide margin. Orchard Therapeutics Plc (ORTX) shares nearly doubled after the company agreed to be acquired by Kyowa Kirin Co. Ltd. (4151.T) for at least $16 per share in cash.
Overall, it was a mixed day for the stock market on Thursday. Investors appear to be cautious as they await the release of important economic data next week, including the Consumer Price Index report on Tuesday and the Federal Reserve’s interest rate decision on Wednesday.
Analysis:
The decline in Clorox’s stock price is understandable, given the impact that the cyberattack has had on its business. However, the decline in Rivian’s stock price is more surprising, given that the company met Wall Street’s expectations for its third-quarter sales. It is possible that investors are simply becoming more cautious about the electric vehicle sector as a whole, or that they are concerned about Rivian’s ability to raise additional capital.
The spin-off of BlackBerry’s internet-of-things business is a positive development for the company, as it will allow it to focus on its core business of cybersecurity software. However, it is important to note that the IPO market has been volatile in recent months, so there is no guarantee that the spin-off will be a success.
Overall, the stock market is likely to remain volatile in the coming weeks as investors await important economic data and the Fed’s interest rate decision. Before making any investing decisions, investors should carefully examine their risk appetite and investment objectives.
