On this episode of Stock Movers:
- Kraft Heinz (KHC) shares rose after the Wall Street Journal reported it could be announcing a breakup as soon as next week.
- Dell (DELL) shares declined after the company booked fewer sales of artificial intelligence servers than in the previous three months and reported profit margins on the powerful machines that fell short of analysts’ estimates. The need for computing to run AI tools has led to a sales boom for makers of high-powered servers like Dell, Super Micro Computer Inc. and Hewlett Packard Enterprise Co. Investors have been concerned about the profitability of AI servers, however, which depend on expensive processors from companies such as Nvidia and Advanced Micro Devices.
- Caterpillar (CAT) shares sunk after it warned investors it now expects tariffs to have an even greater impact on its business, costing as much as near $2 billion this year. The company is one of the world’s biggest makers of machinery for mining and construction. Tariffs already took a bite out of Caterpillar’s second-quarter results, with costs coming in at the top end of its estimated range disclosed in April.
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