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Tuesday’s Wall Street Highlights: Pinterest, BP, Wolfspeed, Arista, Lattice, Pfizer and more

Fernanda T
Latest News
October 31 2023 03:24AM

US Index Futures are posting gains on Tuesday, the last day of the month, as Wall Street seeks to sustain the momentum observed in the previous session.

At 06:55 AM, Dow Jones futures (DOWI:DJI) rose 105 points, or 0.32%. S&P 500 futures gained 0.22%, and Nasdaq-100 futures rose 0.03%. The yield on 10-year Treasury bonds stood at 4.827%.

In the commodities market, West Texas Intermediate crude oil for December increased by 0.90% to $83.05 per barrel. Brent crude oil for December rose 1.10% to nearly $88.41 per barrel. Iron ore with a 62% concentration traded on the Dalian Exchange increased by 0.34%, priced at $122.49 per ton.

On Tuesday’s economic calendar, investors await the release of third-quarter unit labor costs at 08:30 AM, with a projected increase of 1%. At 09:00 AM, S&P Case will release August home prices, expected to show a 1.60% annual increase. At 09:45 AM, the Chicago Purchasing Managers’ Index (PMI) will be published, with a consensus of 45 points for October. The Conference Board will release the consumer confidence for October at 10:00 AM, with an expected reading of 100 points. To conclude the schedule, the Dallas Fed will release the services index at 10:30 AM, and the API will disclose last week’s oil inventory at 4:30 PM.

In the Middle East, Israel launched attacks in Lebanon and Syria, intensifying its ground operations in Gaza, while Prime Minister Benjamin Netanyahu rejected a ceasefire.

In Asia, markets had mixed performance. The Bank of Japan kept interest rates at -0.1% but adjusted its approach to Japanese government bonds. The yen weakened, reaching 150 per dollar. China’s PMI fell to 49.5 in October, indicating contraction.

In Europe, retail sales in Germany exceeded both annual and monthly expectations. Eurozone GDP declined 0.1% in the third quarter, below estimates. Inflation slowed to 2.9% in October, while core inflation rose to 4.2%.

The US stock markets rose sharply on Monday’s session, while oil prices fell more than 3% in the commodities market. Israel’s ground invasion of Gaza was on a smaller scale than what the market had feared, causing prices to readjust to a less pessimistic scenario. The Dow Jones rose 511.37 points or 1.58% to 32,928.96 points. The S&P 500 rose 49.45 points or 1.20% to 4,166.82 points. The Nasdaq Composite jumped 146.47 points or 1.16% to 12,789.48 points.

Furthermore, in the corporate focus, Amazon’s stocks were still reacting to the quarterly earnings report. On the other hand, Treasury yields rose again, ending the day close to 4.9%. The US Treasury released its quarterly debt issuance plan, with a cut in the borrowing forecast compared to July. The current expectation is to borrow $776 billion in net debt over the next three months. Although lower than the previously forecasted volume, the amount is still a record.

On the corporate earnings front for Monday, investors will be paying attention to reports from Pfizer (NYSE:PFE), Caterpillar (NYSE:CAT), JetBlue (NASDAQ:JBLU), Amgen (NASDAQ:AMGN), Eaton (NYSE:ETN), BP (NYSE:BP), ABInBev (NYSE:BUD), before the market opens. After the closing, reports from AMD (NASDAQ:AMD), First Solar (NASDAQ:FSLR), Caesars Entertainment (NASDAQ:CZR), Match Group (NASDAQ:MTCH), Oneok (NYSE:OKE), Livent (NYSE:LTHM), Paycom (NYSE:PAYC), and others will be awaited.

Wall Street Corporate Highlights for Today

Apple (NASDAQ:AAPL) – Apple has launched new MacBook Pro and iMac models with redesigned M3 chips to compete with Nvidia (NASDAQ:NVDA). Prices in the US start at $1,599 and $2,499, respectively. Apple’s custom chips, based on Arm technology (NASDAQ:ARM), offer improved battery life and performance. Apple has also introduced a secure screen sharing feature for corporate users.

Microsoft (NASDAQ:MSFT), Siemens (USOTC:SIEGY) – Siemens and Microsoft have announced a joint project, Siemens Industrial Copilot, which uses generative artificial intelligence (AI) to improve productivity and human-machine collaboration in the manufacturing, transportation, and healthcare sectors.

Meta Platforms (NASDAQ:META) – Meta Platforms will launch subscription plans for users in Europe, allowing them to use Facebook and Instagram without ads, in compliance with European Union regulations. Monthly plans will cost 9.99 euros for web users and 12.99 euros for iOS and Android.

On Semiconductor (NASDAQ:ON) – On Semiconductor, a chip manufacturer, expects a weak fourth quarter and has announced the dismissal of around 900 employees due to possible reduced demand for automotive chips due to high interest rates and accumulated inventory.

Western Digital (NASDAQ:WDC) – Western Digital will spin off its flash memory business after merger talks with Kioxia were terminated. The company plans to raise capital through the sale of convertible bonds to refinance part of its debt.

Logitech (NASDAQ:LOGI) – Hanneke Faber has been appointed CEO of Logitech International, taking over on December 1st following the departure of Bracken Darrell in June. Guy Getch will continue as interim CEO until the transition. The company recently raised its profit and sales outlook after a challenging period.

Broadcom (NASDAQ:AVGO) – Broadcom expects to complete its acquisition of VMware (NYSE:VMW) for $69 billion before the November deadline. Investor concerns relate to Chinese approval, with the State Administration for Market Regulation (SAMR) not yet signing the agreement.

SolarWinds (NYSE:SWI) – The Securities and Exchange Commission (SEC) has charged SolarWinds and its Chief Information Security Officer, Timothy Brown, with fraud and failing to fully disclose cybersecurity weaknesses following a 2020 cyberattack. The SEC alleges that the company overstated its cybersecurity practices and underestimated known risks, seeking civil penalties and an order against Brown. SolarWinds has denied the allegations, calling them “unfounded.”

Vodafone (NASDAQ:VOD) – Vodafone will sell its business in Spain for $5.30 billion to Zegona Communications (LSE: ZEG), as part of CEO Margherita Della Valle’s strategy to focus on more promising markets. Zegona will finance the deal with debt and funding from Vodafone, while Vodafone seeks to reverse its challenging performance in Spain.

BlackBerry (NYSE:BB) – BlackBerry CEO John Chen will retire after a decade at the helm. Richard Lynch, a board director, will take over as interim CEO.

BP (NYSE:BP) – BP is exploring joint ventures to expand production and reduce costs in its natural gas fields in the US, focusing on the Haynesville and Eagle Ford basins. The goal is to increase production and share costs. However, asset value and joint ownership issues are challenges to overcome. BP plans to invest about $2.5 billion annually in the shale business, aiming to double production by 2030. The company is also committed to emissions reduction and the development of renewable and low-carbon energies.

BHP Group (NYSE:BHP) – The world’s largest mining company, BHP, will invest $4.9 billion to expand the Jansen potash project, making it one of the world’s largest potash mines. Potash is essential for fertilizers and is expected to see high demand due to population growth and sustainable agriculture. BHP is diversifying its commodity investments due to the transition to a low-carbon economy.

Exxon Mobil (NYSE:XOM) – Bart Cahir, former head of Exxon Mobil’s shale oil and gas business, is returning as Senior Vice President of Upstream Unconventional, replacing his successor after his arrest. Exxon is looking to expand its shale business in the US.

General Motors (NYSE:GM) – GM and the UAW have ended a six-week strike with a tentative agreement, securing record wage increases and significant costs for the automakers. The UAW has gained more influence in investment decisions and the right to strike in future factory closures. Biden praised the agreement.

Stellantis (NYSE:STLA) – Stellantis revealed that strikes in North America for wage increases would cost less than $795 million in profitability, following a revenue hit of about $3.2 billion. CFO Natalie Knight mentioned mitigation measures.

Ford Motor (NYSE:F) – Ford plans to add over 15,000 Tesla Superchargers to its electric vehicle charging network, surpassing its previous estimate of 12,000. It will also expand its BlueOval network by 25% in North America, totaling over 106,000 chargers.

Tesla (NASDAQ:TSLA) – Tesla’s stock fell on Monday due to Panasonic’s announcement of reduced production of automotive batteries due to slowing electric vehicle adoption. Concerns about a global slowdown in electric vehicle sales are worrying investors.

CVS Health (NYSE:CVS), Walgreens Boots Alliance (NASDAQ:WBA) – Employees of CVS Health and Walgreens are conducting a three-day strike to pressure the companies to improve working conditions and hire more employees in their stores. The strike, dubbed “Pharmageddon,” began in New York and involves around 5,000 pharmacy workers. Organizers are also seeking better wages and more consistent schedules for pharmacy technicians.

Pfizer (NYSE:PFE), GSK (NYSE:GSK) – Pfizer, the leader in Covid-19 vaccine sales, faces strong competition from GSK, whose new RSV vaccine has gained a foothold in the US. GSK exclusively supplies CVS Health and offers competitive prices, potentially impacting the sales of both companies. Third-quarter financial results will reveal the full impact.

Unilever (NYSE:UL) – Unilever will freeze the fixed salary of its CEO, Hein Schumacher, for two years after his initial compensation package was rejected by shareholders. The board proposed a base salary of $1.96 million, a 20% increase from his predecessor, Alan Jope. The decision was made after 37 meetings with 24 of the company’s top shareholders.

Anheuser-Busch InBev (NYSE:BUD) – Anheuser-Busch InBev’s shares rose 3.6% in pre-market trading on Tuesday after announcing a $1 billion stock buyback, addressing investors’ desires for financial returns and debt reduction. The company focuses on organic growth and debt reduction after acquiring SABMiller in 2016.

Alibaba (NYSE:BABA) – Alibaba is pressuring merchants to offer low prices on Singles’ Day to boost sales and counter declining market share. Additionally, Alibaba has launched the Tongyi Qianwen 2.0 update of its AI model, with “hundreds of billions of” parameters, making it one of the world’s most powerful models. It has also introduced eight AI models for specific industries.

Amazon (NASDAQ:AMZN) – Amazon.com’s shares rose 3.9% on Monday, marking its best two-day performance in nearly a year, with a total increase of 11.0% over the last two sessions. This increase is driven by an optimistic earnings report and positive outlook for cloud computing. In other news, the European Union’s antitrust regulators have until February 14th next year to decide on the approval of Amazon’s $1.4 billion acquisition of iRobot (NASDAQ:IRBT). The investigation was temporarily suspended in August for more information, and the previous deadline was December 13th. Amazon reduced the deal price to $1.42 billion in July.

Walmart (NYSE:WMT) – Walmart is investing over $9 billion over two years to modernize stores in the US, with improvements in layouts, product selections, technology, and services, aiming to enhance the customer experience and compete in new markets.

FedEx (NYSE:FDX) – FedEx’s Master Executive Council has selected Billy Wilson as the interim president of the Air Line Pilots Association (ALPA) after the rejection in July of a tentative agreement between ALPA and FedEx. Wilson replaces Chris Norman and seeks to improve negotiations with FedEx, seeking wage increases and better working conditions for pilots.

Goldman Sachs (NYSE:GS) – Gregory Weiss, a former BlackRock (NYSE:BLK) executive, has been hired by Goldman Sachs’ asset management arm to lead the “custom wealth solutions” business. He will bring his expertise in managed accounts and portfolio consulting to the company. Goldman is looking to expand its offering of personalized portfolios. In other news, Goldman Sachs has withdrawn its forecast of a US government shutdown for this year due to geopolitical risks and the election of the Speaker of the House. However, it warned of risks in 2024 due to underlying political differences.

Morgan Stanley (NYSE:MS) – The granting of $20 million in bonuses to Morgan Stanley executives as part of its succession plan raises questions about governance and commitment to the company, according to Wells Fargo (NYSE:WFC) analyst Mike Mayo. This suggests that succession depends more on compensation than organizational culture, he says.

Earnings

BP (NYSE:BP) – BP reported a profit of $3.3 billion in the third quarter, below expectations, due to strong trading and refining margins offset by weak gas results. The company maintained dividends and a share buyback program, but its shares fell 4.72% in Tuesday’s pre-market trading. BP also recorded a $540 million impairment on wind projects in New York. Weakness in gas earnings was attributed to a lack of volatility in the market. BP expects capital expenditures of $16 billion this year and anticipates lower refining margins in the fourth quarter.

Pinterest (NYSE:PINS) – Social media company Pinterest saw a roughly 16.53% increase in pre-market trading on Tuesday after beating analysts’ expectations for the third quarter. The company reported adjusted earnings of 28 cents per share on revenue of $763 million, surpassing analysts’ expectations for earnings of 20 cents per share and revenue of $744 million, according to LSEG, previously known as Refinitiv.

Amkor Technology (NASDAQ:AMKR) – Amkor Technology experienced a 12% drop in pre-market trading after reporting third-quarter results with declining earnings and revenues compared to the previous year and predicting a reduction in profits in the fourth quarter.

VF Corp (NYSE:VFC) – The clothing and footwear manufacturer, owner of The North Face brand, saw a 7.3% decline in pre-market trading. The company decided to withdraw its previous forecasts for earnings and revenues for 2024. Additionally, it noted that it does not expect an improvement in the performance of the Vans footwear brand during the second half of fiscal year 2024 due to a more challenging wholesale market environment in the United States.

Wolfspeed (NYSE:WOLF) – The chip manufacturer’s stock saw an approximately 12.9% increase after reporting first-quarter fiscal results. The company posted a loss of 53 cents per share, beating analysts’ expectations of a loss of 67 cents per share, according to information from LSEG, previously known as Refinitiv. However, revenue fell short of projections, totaling $197 million, while analysts expected $208 million.

Arista Networks (NYSE:ANET) – In pre-market trading, the cloud networking solutions company saw a 9.8% increase in its market value. Arista Networks reported earnings per share of $1.83, excluding extraordinary items, with revenue of $1.51 billion. Analysts polled by FactSet had expected earnings per share of $1.58 and revenue of $1.48 billion.

Monolithic Power Systems (NASDAQ:MPWR) – The semiconductor company’s shares rose up to 4% in pre-market trading after Monolithic announced adjusted earnings of $3.08 per share in the third quarter, slightly above analysts’ expectations of $3.06 per share, according to FactSet. Additionally, the company provided revenue guidance for the fourth quarter in the range of $442 million to $462 million, while analysts were expecting revenue of $451.7 million.

Lattice Semiconductor (NASDAQ:LSCC) – The low-power programmable chip producer experienced a roughly 17.2% drop in pre-market trading. Lattice’s revenue projection for the fourth quarter, ranging from $166 million to $186 million, fell below the average analyst estimate of $195.7 million, according to StreetAccount.

Stellantis (NYSE:STLA) – In the third quarter, Stellantis exceeded revenue estimates with a 7% increase, totaling 45.1 billion euros, surpassing analysts’ expectations of 43.2 billion euros. This growth was attributed to higher volumes and a solid pricing strategy, according to the company.

Pfizer (NYSE:PFE) – Pfizer announced a quarterly loss that was lower than expected, due to challenges with the Paxlovid treatment and the Covid vaccine. The loss per share was 17 cents, lower than the expected 34 cents. Revenue totaled $13.23 billion, slightly below the expected $13.34 billion. The company recorded a $5.6 billion inventory write-down, with a focus on boosting growth and exploring merger and acquisition opportunities.

Tenet Healthcare (NYSE:THC) – During the third quarter, Tenet reported adjusted earnings of $1.44 per share and revenue of $5.07 billion. This beat analysts’ forecasts of earnings of $1.20 per share and revenue of $5.02 billion, according to FactSet.

Chegg (NYSE:CHGG) – Chegg reported a loss in the third quarter, with a loss of $18.3 million. Revenue also decreased by 4%, reaching $157.9 million. The company forecasted revenues between $185 million and $187 million for the fourth quarter. Chief Financial Officer Andy Brown plans to retire in early 2024.