Check out the companies making headlines before the market opens. Apple — Shares fell 1.4% after Jefferies downgraded the big tech company to “hold” from “buy,” saying initial demand was weaker than expected and therefore near-term expectations for the iPhone 16 and 17 were too high. The company added that Apple’s artificial intelligence capabilities, which are causing smartphone replacement cycles to accelerate, are a “premature” catalyst. NXP Semiconductor — Shares of NXP Semiconductor rose 0.8% after UBS upgraded its rating on the chipmaker to buy from neutral. The company cited healthy inventory levels and “best-in-class profit elasticity.” Amazon — Shares of the e-commerce company fell nearly 2% after Wells Fargo downgraded the e-commerce company to equal weight from overweight, citing slowing growth and competition from Walmart. Pfizer activist investor Starboard Value bought about $1 billion in shares as it seeks to turn around the troubled company, sources told CNBC. After the news broke, the stock price rose nearly 3%. KB Home — Shares of the homebuilder fell 2% after Wells Fargo cut its rating to underperform from equal weight. The bank said KB Home is likely to lag peers in the next phase of the cycle. Coty — Shares of the beauty company rose 2.5% after Jefferies upgraded the stock to buy from hold. Analyst Ashley Helgans highlights continued growth in fragrances and attractive valuation Hershey’s – The chocolate maker’s shares at UBS and Bernstein Shares fell 1% after downgrading ratings to neutral and market perform respectively. UBS pointed to a challenging outlook for cocoa inflation in 2025, while Bernstein highlighted headwinds from GLP-1 drugs. American Express – The financial services stock fell more than 1% after JPMorgan downgraded the stock to neutral from overweight. JPMorgan believes the stock is expensive but has limited upside potential. Wynn Resorts — Shares of Wynn Resorts rose 2.5% after the casino and resort company announced Friday that it had received the United Arab Emirates’ first commercial gaming operator license. Ally Financial — The financial services stock rose 1.4% after J.P. Morgan upgraded its rating to “overweight” from “neutral.” JPMorgan said Ally’s risk-reward ratio is attractive. — CNBC’s Yun Li, Samantha Subin, Alex Harring, Pia Singh and Michelle Fox contribute
