Movers: Alibaba, Las Vegas Sands, lululemon, Meta, Nio, Redfin, Starbucks, Twitter, Uber, Wynn

Barry Adams
11 Jul, 2022
New York City

Benchmark indexes in New York eased as investors focus on corporate earnings and the latest guidance. 

The S&P 500 decreased 0.97% to 3,862.52 and the Nasdaq Composite index fell 1.80% to 11,432.14. 

Banks are scheduled to kickstart the earnings season with JPMorgan Chase, Morgan Stanley, Citigroup, and Wells Fargo are scheduled to release earnings.

Delta Airlines and PepsiCo are scheduled to report earnings on Tuesday. 

Investors are also awaiting the consumer price index for June on Wednesday and the measure of inflation index is expected to cross 8.6% increase in May. 

Twitter Inc declined 7.4% after Elon Musk led investment group abandoned its $44 billion takeover bid. 

Twitter said the company will sue Elon Musk and for the terms of the negotiated contract. 

Las Vegas Sands and Wynn Resorts declined more than 9% after Macau said it will close all casinos for one-week to contain the spread of coronavirus. 

Several areas in Shanghai also reported rising cases of BA.5 subvariant virus infections prompting authorities to resume mass testing. 

Uber Technologies declined 4.5% to $21.34 after the company was accused of using stealth technologies to block government investigations and win public trust,  according to a report by the International Consortium of Investigative Journalists.

The company was also accused of striking a secret deal with Emmanuel Macron while he was economy minister between 2014 and 2016 and help its to breakup the closed French taxi market. 

Uber said it has amended its past practices and it is a different company today. 

Alibaba Group Holding declined 8.2% to $110.95 and Tencent Holdings fell 3.4% to $43.12 after Chinese regulators fined companies for not disclosing past transactions. 

Meta Platforms declined 4.2% to $163.79 after Needham downgraded the stock to "underperform" from "hold" citing slower than expected returns in Metaverse technology investment.   

lululemon Athletica Ltd declined 3.9% to $281.95 after Jeffries downgraded the stock to "underperform" from "hold" pointing to a more competitive market. 

Starbucks Corporation declined 1.2% to $78.27 after China reported rising coronavirus cases in Shanghai and other smaller cities and authorities implemented mass testing and stringent mobility restrictions. 

China is the second largest market for the coffee chain operator after the United States and derives about 25% of its revenues from the second largest economy in the world. 

Nio Inc declined 8.9% to $20.61 after China faced another surge of coronavirus infections and the company also set up a committee to review allegations leveled by a short-seller  Grizzly Research LLC that the company inflated its revenues and net income using intercompany transactions. 

Redfin Corp dropped 9.3% to $8.62 after the real estate broker said home sale contract cancellation rate in June was just under 15% and jumped from 11% a year ago and approached the high not seen since March and April 2020.

About 60,000 contracts fell through in June equating to 14.9% of all homes that went under contract that month.