Buffett Bets on Housing

Good morning Wake-up Watchlisters! While you’re sipping coffee you’ll see stock futures fell on Tuesday as concerns that China’s faltering economy and debt problems will spread to the global economy. Overall, China is struggling to contain a potential default at developer Country Garden Holdings Co. after missing payments on its debt.

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Here’s a look at the top-moving stocks this morning.

The Home Depot, Inc. (NYSE: HD)

Home Depot is down 0.29% premarket after posting a slight beat in its second-quarter earnings on Tuesday. Home Depot reported revenue of $42.92 billion, but its stock dropped as home improvement had been struggling to regain the allure it once had during COVID. Last quarter, sales dropped 2% compared to a year ago, driven by a decrease in transaction growth.

D.R. Horton, Inc. (NYSE: DHI)

D.R. Horton is up 2.77% premarket after Warren Buffett’s Berkshire Hathaway revealed new positions in three US homebuilders on Monday, sending shares of each company higher as the billionaire bets on the US housing market. His position in D.R. Horton consists of 6 million shares worth more than $720 million as of June 30.

Discover Financial Services (NYSE: DFS)

Discover Financial Services is down 5.99% premarket after CEO Roger Hochschild stepped down from his role, effective immediately, after he concluded a change was needed. John Owen, a board member since June 2022, will take over as interim CEO.

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NVIDIA (Nasdaq: NVDA)

Nividia is up 1.52% premarket as Wall Street continues to see deeper demand for AI. UBS analyst Timothy Arcuri increased his price target for the stock by $65, to $540 per share, calling Nvidia a “kingmaker” in the AI chip sector. Wells Fargo also added $50 to its objective, taking it to $500 per share.

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Those are the biggest stock movers for today.

Happy trading!

The Wake-Up Watchlist Research Team

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