Markets quickly gave up most of their morning gains after tempering rate cut expectations. Investors need to grow bearish when rates fall since it indicates a weak economy and poor job market. Markets are flat.
Speculators needed to avoid stocks that rise substantially in just a few hours. Yesterday, rumors circulated that Farfetch (FTCH) would find a buyer. Today, the online retailer struggling to delay its earnings report. In addition, Richemont (CFRHF) said that it does not plan to invest or loan money to Farfetch. FTCH plunged by more than 50%. Short sellers have a 14.06% short interest against the stock.
In the health insurance sector, Cigna (CI) and Humana (HUM) are reportedly discussing a deal to merge. This is an unusual stock-and-cash deal. Regulators are highly unlikely to approve such a deal. This would concentrate too much of Cigna’s influence in the Pharmacy Services and Human’s Medicare Advantage healthcare plan.
CI stock fell by 8.0%. HUM stock was down 3.83%.
In the packaged food sector, Hormel Foods (HRL) dropped 5.38% to trade below its 52-week low. The firm, which supplies Skippy peanut butter, expects full-year 2024 profit will not meet expectations. The company faces weaker consumer spending. The price of meat products is rising, while ready-to-eat meals are a headwind.
