Stocks experienced a slump on Tuesday due to increased pressure from rising bond yields. The yield on the 10-year Treasury reached its highest level since 2007, causing concern among investors. HP Inc. saw a 1.8% increase in its stock price after it was upgraded to Buy from Underperform by BofA analysts, who noted improvements in the PC market and tighter cost controls. Meanwhile, Warren Buffett’s Berkshire Hathaway sold 5.1 million shares of HP as it continues to reduce its stake in the company. WK Kellogg received a Sell rating from Goldman Sachs analysts, leading to a 16% decline in the stock price. McCormick reported earnings in line with estimates but fell short on revenue, resulting in an 8.5% decrease in its stock price.
Oddity Tech, a beauty-products company, forecasted strong third-quarter performance with net revenue growth expected to be between 29% and 31%. This exceeded initial guidance and led to an upgrade from Truist analysts, who recommended buying Oddity stock. Eli Lilly reached an agreement to acquire radiopharmaceutical company Point Biopharma Global for $1.4 billion, causing a surge in Point Biopharma’s stock price. Warby Parker saw a rise in its stock price after its eyeglasses retailer shares were upgraded by Evercore ISI. Clean Energy Fuels experienced a 3.9% increase after a Strong Buy rating from Raymond James. Conversely, Airbnb was downgraded by KeyBanc due to concerns about near-term peak margins and potential revenue growth deceleration. Ford and General Motors had to lay off approximately 500 workers combined as the United Auto Workers strike forced the automakers to idle more factories. Finally, Krispy Kreme announced that it is exploring strategic alternatives, including an all-cash sale for Insomnia Cookies, which it bought a majority stake in back in 2018.
In summary, rising bond yields put pressure on the stock market, causing a downturn in stock prices. However, some companies such as HP Inc. and Oddity Tech were able to see increases in their stock prices due to positive developments in their respective markets. On the other hand, WK Kellogg and McCormick saw declines in their stock prices due to downgrades and underperformance. Overall, the market experienced a mix of positive and negative movements influenced by various factors such as company performance and market conditions.