Wolfspeed losses, Adobe upgrade, Ball Corp.: Top Stocks
Investors and bond markets continue to react to the Fed's latest FOMC meeting minutes and inflation data. Semiconductor company Wolfspeed's (WOLF) stock declines after forecasting further losses. Bank of America analysts upgrade Adobe (ADBE) stock to "Buy" on the company's expected leadership in AI. The Ball Corporation's (BALL) aerospace segments are set to be acquired by Britian-based BAE Systems (BAESY). Yahoo Finance Live's Julie Hyman breaks down several trending stocks after Thursday's opening bell.
Video Transcript
JULIE HYMAN: We're about 30 minutes into the trading day. And let's take a look at how stocks are moving. Right now, we do have the S&P moving up a bit here, not even a fifth of 1%. Stocks sort of mixed here as investors continue to digest the Fed's meeting minutes and what the participants sentiments mean for further policy tightening this year.
Yields have been seeing a lot of impact from the Fed. They continue to spike this morning driven by the resilient US economy. And the possibility of stubbornly high inflation, we see oil stocks outperforming. Looking at individual names, shares of Wolfspeed are plunging this morning after reporting a wider than expected loss and forecasting further losses for the current quarter. The company blaming significant factory start up costs for those losses.
Also watching Adobe, Bank of America upgrading that stock to buy from neutral, saying the software company is on the verge of becoming a leader in artificial intelligence. This comes after Adobe released AI-powered features to Adobe Express. That's its cloud-based design platform. The features have been in beta since June. But now users can use generative AI text prompts to create custom images and text effects in over 100 languages.
And we're also watching Ball Corp, the stock popping on news that Britain's BAE Systems agreed to acquire Ball's Aerospace assets for about $5.5 billion. Ball known mostly for making aluminum cans. But in its second quarter, its aerospace division accounted for about 14% of sales and 15% of operating profit. BAE stock is falling on the news as investors consider the price the company is paying for that ball unit.
