Stock Movers: Home Depot Cuts Guidance, Microsoft & Amazon Downgraded, Apple Surges in China

Home Depot's Guidance Cut

• 📉 Home Depot (HD) shares fell nearly 3% after cutting its full-year earnings guidance.
• ⚠️ Consumers are reportedly pausing on big-ticket home purchases, opting for smaller projects like painting or gardening.
• 📊 The company expects adjusted earnings per share to decline 5% year-over-year, lower than previously forecasted.
• 🏠 This signals a warning about consumer strength and the impact of the housing market, despite lower mortgage rates, due to high home prices and cost of living.

Microsoft and Amazon Downgrades

• 📉 Microsoft (MSFT) and Amazon (AMZN) shares moved lower following downgrades from Rothschild & Co Redburn.
• 💡 The analyst cited caution around hyperscalers and questioned the bull case for generative AI, marking the first downgrade since June 2022.
• 🎢 These moves occur amidst a broader selloff in the Nasdaq 100, with investors retreating from AI-related stocks due to stretched valuations.

Apple's Momentum in China

• 📈 Apple (AAPL) shares rose as its iPhone 17 series drove a 37% increase in monthly smartphone sales in China.
• 📱 iPhones represented one in every four smartphones sold in China in October, a threshold not met since 2022.
• ✅ This performance indicates that Apple's year-on-year upgrades are resonating with Chinese consumers.
• 🚀 The results support CEO Tim Cook's prediction of a return to growth in China this quarter.

Other Stock Movements

• 👟 Salomon (ticker AS) saw an increase of up to 8%, driven by strong performance in its sporting goods, particularly footwear and skiwear.
• 🎾 The company also benefits from its ownership of Wilson tennis equipment.