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Korea’s market meltdown starts with two stocks. (00:14) Ford (F) and GM are battling for a Pentagon payday. (01:08) Cracker Barrel (CBRL) hits reset—again. (02:00)
This is an abridged transcript.
South Korea’s stock market came under immense pressure on Tuesday, as it plunged ~10% after a global selloff in tech stocks pushed companies like SK Hynix and Samsung deep in the red.
The country’s KOSPI index plunged to its worst session since March.
Deutsche Bank strategist Jim Reid said renewed concerns over AI investment spending and competition from lower-cost Chinese companies were “the dominant driver” of Asian markets, triggering another selloff in global semiconductor stocks.
The selloff was concentrated in South Korea’s heavyweight chipmakers, with SK Hynix (SKHY) tumbling as much as 13% and Samsung Electronics (SSNLF) falling around 12%.
The two companies account for more than half of the KOSPI’s weighting.
Reid said the weakness also spread to Japan, with the Nikkei falling 4.1%.
Ford Motor (F) is competing with rivals to secure a contract with the Department of Defense to build a tactical truck for the U.S. Army based on its F-Series super-duty pickup truck.
According to The Wall Street Journal, Ford (F), General Motors (GM), and BC Customs have been tasked with building a prototype of a truck that can operate as a mobile charging unit, troop transport, and is capable of navigating challenging terrain.
The Infantry Squad Vehicle-Heavy (ISV-H) is described as a “hybrid-powered, heavier-duty variant of the standard tactical vehicle.”
This would be the largest military contract for Ford (F) since the Cold War.
The DoD expects to buy at least 600 vehicles at a cost of ~$330,000 each.
The prototypes developed by Ford (F), GM (GM), and BC Customs will undergo operational assessments and developmental testing with the Army Test and Evaluation Command, with first deliveries expected by March 30, 2027.
Now an update to a story that has been developing for nearly a year.
The CEO of Cracker Barrel (CBRL) is stepping down.
Julie Masino has been on the job less than three years.
Her tenure is marked by an ambitious but ill-fated rebranding effort that was quickly reversed after creating a public relations nightmare.
Masino will be succeeded by former Bloomin’ Brands (BLMN) CEO David Deno effective August 10 but she will remain at the company until October 9 in an advisory role.
Cracker Barrel’s stock remains 45% below where it traded when she took the helm and underperformed the S&P 500 by 34 percentage points this year.
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Catalyst watch:
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The two-day BTIG Annual Biotech conference will begin. Participating companies include Vaxcyte (PCVX), Compugen (CGEN), Alterity Therapeutics (ATHE), Vaxart (VXRT), Rezolute (RZLT), Avalo Therapeutics (AVTX), BullFrog AI (BFRG), and Fractyl Health (GUTS).
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Microsoft (MSFT) and 343 Industries’ will release Halo: Campaign Evolved on Xbox Series X|S, PC, Steam, and PlayStation 5. The release is considered significant because it is the first Halo game to arrive on Sony’s (SONY) PlayStation.
Stock index futures are in mixed territory before the opening bell.
Crude oil is down 2.5% at $80. Brent crude is down 2.9% at $85.
The FTSE 100 is up 0.6% and the DAX is up 0.6%.
One stock on the biggest movers list: Applied Digital (APLD) +4% – Shares rose after the AI infrastructure company crushed FQ4 revenue and earnings expectations, driven by explosive growth in its high-performance computing business.
Economic calendar:
Editor’s Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.
