Government Contractors Lose Ground, Tapestry Rises | Global News Avenue

Major U.S. stock indexes fell on Thursday as the latest Producer Price Index report showed wholesale prices rose to their highest levels in October. Steepest rise in three months Fed Chairman Jerome Powell says no “eager interest rate.

While expectations for another rate cut by the Fed at its December meeting remain high, the higher-than-expected PPI data could influence policymakers to consider whether to cut rates further next year.

The S&P 500 and Nasdaq both closed down about 0.6% on Thursday. The Dow fell 0.5%.

Stake in defense contractor Leidos (LDOS) The S&P 500 index suffered the biggest decline on Thursday, plunging about 13%. With today’s downturn, Leidos stock has reversed gains from its third-quarter earnings report released in late October. While strong bookings suggest Leidos is poised for growth, analysts pointed to uncertainty around the company’s artificial intelligence (AI) integration and risks related to the timing of Veterans Benefits Administration projects.

Leidos isn’t the only government contractor whose stock is under pressure. Amentum stock (AMTM), a company that provides engineering and technology solutions to the U.S. government and its allies, fell about 11%. Amentum stock has been volatile since debuting on the public markets in early October and joining the S&P 500. Amentum recently said it had been awarded a $490 million contract to help modernize the U.S. Navy’s fleet of trainer aircraft. However, the company faces a challenging competitive environment and integration risks associated with the recent merger of two divisions spun off from Jacobs Solutions (J).

Ultramicrocomputer (SMCI) shares continued their recent decline, falling another 11% on Thursday. Super Micro stock has under duress That comes after the server maker announced last month it would delay the release of its latest earnings and said it needed to hire a new auditor after accounting giant Ernst & Young resigned as auditor. If the company fails to comply with the Nasdaq exchange’s reporting rules, it could risk delisting from Nasdaq.

Meanwhile, the top daily performer on the S&P 500 was shares of luxury apparel and accessories holding company Tapestry (thermoplastic elastomer), soaring about 13%. Tapestry stock’s rise comes after parent company of Coach and Kate Spade brands Unmerge With Capri Holdings Inc. (CPRI), home of Versace, Michael Kors and Jimmy Choo. The companies pointed to legal challenges after a federal judge issued an injunction last month blocking the deal, agreeing that the merger would stifle competition and lead to higher prices. Capri shares rose 4.4%.

Shares of casino operator Wynn Resorts (Wynn) increased by about 9%, with regulatory filings showing billionaire Tilman Fertitta has increased his stake in the company to 9.9%. Fertitta is the CEO of Texas restaurant and hospitality company Landry’s. While documents show Fertitta’s Wynn stake is a passive investment, reports suggest he may push for change. Wynn is currently focused on expanding into the Middle East gaming market through a joint venture in the United Arab Emirates.

Solar stocks recovered some losses on Thursday following a series of losses following Donald Trump’s election victory. Trump has pledged to reverse Biden administration policies aimed at supporting renewable energy solutions, putting pressure on share prices across the industry, but some analysts said the decline represented a buying opportunity. Enphase Energy’s stock (ENPH) recently announced plans to lay off about 500 employees in response to challenging industry dynamics, sending its shares up 5.3%. Shares of panel maker First Solar (FSLR) rose 7%.