It has been a tough week for US stocks as warnings of recession from some of the big investment banks helped sour market sentiment.
Stronger than expected data on the US economy, including jobs figures on 2 December and a robust reading from the US services sector on 5 December have also raised concerns that the long-awaited pivot from the US Federal Reserve on interest rates could still be some way off.
This had a particularly negative impact on US small caps in the Russell 2000 index and the more interest rate sensitive names in the Nasdaq Composite index.
Shares in power firm NRG Energy (NRG:NYSE) came under big pressure as it announced an entry into the emerging connected home market with the $2.8 billion acquisition of Vivint Smart Home. Investors apparently unimpressed by the company taking on $2.4 billion worth of debt as part of the deal.
Investors were sweet on chocolate maker Hershey (HSY:NYSE) after UBS upgraded the stock and said it was poised to outperform in the near and long term.
CAMPBELL SOUP
With more people choosing to cook from home rather than go out to eat, it's no wonder that Campbell Soup (CPB:NYSE) has enjoyed a strong quarter for sales. Life is going so well for the business that it raised annual sales and profit guidance.
The company has been seen as a recessionary winner, with the shares up nearly 30% this year. Ready to serve soups and sauces for Italian and Mexican meals have been very popular with shoppers but Campbell has been losing market share for condensed soups and broths to cheaper supermarket own-label alternatives.
Its Goldfish cracker brand is proving to be a massive hit with teenagers and product innovation together with partnerships such as one with Disney Marvel have helped keep the range front of mind for hungry individuals.
First quarter adjusted earnings per share increased by 15% to $1.02 for the group. It is now guiding for 2% to 5% increase in earnings per share for the year to a range of $2.90 to £3.00. Previously it expected 0% to 4% increase to a range of $2.85 to $2.95.
META PLATFORMS
The Facebook-owner saw around $20 billion wiped off its market value during the past week as regulators continue to bare their teeth. Big tech's targeted ads model and how data is collected and used has drawn scrutiny from watchdog's around the world, and Meta Platform's (META:NASDAQ) is now facing a potentially damaging EU ruling that could hit Facebook and Instagram revenues hard.
EU privacy regulators reportedly ruled that Meta should not demand that Facebook and Instagram users must opt-in to personalised ads based on online activity. Because Meta's European headquarters is based in Ireland, it falls under the EU regulatory scrutiny.
If the ruling is upheld, it could see millions of users potentially opt-out of this type of targeting, leaving Meta with less user data to use to generate audiences for the tailored ads that analysts and those close to the business say account for the majority of its bookings.
PFIZER
Pharma group Pfizer (PFE:NYSE) got a double boost this week from a positive court ruling on heartburn drug Zantac and the FDA (Food and Drug Administration) granting a priority review for its RSV (respiratory syncytial virus) drug candidate.
A Florida Multi-District litigation federal court dismissed a class action suit comprising thousands of claims due to a lack of consistent scientific evidence that Zantac caused cancer.
Zantac was developed by GSK (GSK) and approved by regulators in 1983 and by 1998 it had become one of the world's best-selling drugs. Pfizer was involved in marketing the drug.
Thousands of state cases remain but the federal ruling removes the bulk of the risk for the drug companies involved.
