Markets will punish speculators who bought Ford Motor (F) stock ahead of its second-quarter results. Shares traded in a $12.00 range since February and broke out to $14.39.
Ford will lose nearly 12% today after reporting disappointing adjusted EBIT. While automotive revenue increased by 5.6% Y/Y to $44.81 billion, wholesale revenue rose by 6% Y/Y. However, warranty costs and losses from its ambitions to build an electric vehicle product hurt profits.
Ford’s adjusted profit fell to $0.47 a share, well below Wall Street’s expectations. For d’s Model E (EV) is a weak spot. Revenue fell by 37% Y/Y, leading to a $1.4 billion loss.
In the energy sector, the hype for higher demand for power-hungry AI servers is over. Vistra (VST) lost 9.35% yesterday and is at risk of re-testing the next support zone at $66.72. VST stock closed at $72.58.
In the restaurant sector, Lamb Weston (LW) was yesterday’s biggest S&P 500 (SPY) loser. The stock lost 28.24% after warning shareholders of a challenging year ahead. The company posted revenue falling by 5.3% Y/Y to $1.61 billion. It lost market share. In addition, restaurant traffic in the U.S. slowed.
The restaurant business is in a downtrend. McDonald’s (MCD) and Starbucks (SBUX) both face selling pressure on the stock markets.
