In the pre-market of the last trading day of 2023, the U.S.
index futures show a slight increase, with Wall Street nearing the
end of a profitable year and possibly hitting a new record. The
S&P 500 is close to a new all-time high, reflecting a strong
rise in the last months of 2023. This growth was driven by
excitement around artificial intelligence and large gains in
technology stocks, despite challenges of rising interest rates.
At 07:21 AM, the Dow Jones futures (DOWI:DJI) rose 12 points, or
0.03%. The S&P 500 futures rose 0.03% and the Nasdaq-100
futures advanced 0.09%. The yield on the 10-year Treasury bonds was
at 3.888%.
In the commodities market, West Texas Intermediate crude oil for
February rose 0.29%, to $71.98 per barrel. Brent oil for March rose
0.51%, near $77.54 per barrel. Iron ore with a 62% concentration,
traded on the Dalian exchange, rose 0.3% on Friday, to $137.31 per
ton, ending 2023 with a jump of 55.1%.
European stock markets are up on the last trading day of the
year. All sectors were positive, anticipating weak trade due to the
early closure of London markets. The Stoxx 600 index is expected to
gain more than 12% in 2023, almost reversing the loss of 2022. The
German DAX and the French CAC 40 had significant gains, while U.S.
economic growth slows down, raising expectations of rate cuts in
2024. Data on Spanish inflation will also be released today. In the
United Kingdom, Nationwide reported an annual fall of 1.8% in house
prices until December, exceeding recent forecasts, but below
initial expectations of a reduction of up to 10%.
The Asia-Pacific markets fell on the last trading day of 2023,
except for Chinese stocks, driven by technology companies. Xiaomi,
a Chinese consumer electronics company, revealed plans to enter the
saturated Chinese electric vehicle market, seeking to compete with
giants like Tesla (NASDAQ:TSLA) and Porsche (TG:PAH3), investing
more than $1.4 billion in its model. Over the year, China’s CSI 300
index fell 11.8%, while the Hong Kong Hang Seng index plunged
14%.
At the close on Thursday, stocks remained stable despite low
liquidity. The S&P 500 approached its all-time high,
maintaining optimism due to expectations of Fed interest rate cuts.
Mixed data on employment and housing were released. The oil market
fell more than 2% due to concerns about recent attacks in the Red
Sea and the Suez Canal.
Wall Street Corporate Highlights for Today
Alphabet (NASDAQ:GOOGL) – Alphabet’s Google
agreed to settle a class-action lawsuit alleging secret user
tracking in private browsing. The preliminary agreement, whose
terms are unknown, ends a trial scheduled for February 2024, with
expectations to present a formal settlement to the court by the end
of February. The lawsuit sought at least $5 billion.
Nvidia (NASDAQ:NVDA) – Nvidia launched the
GeForce RTX 4090 D chip, a modified version to meet U.S. export
controls to China. Promising advances in performance and AI
graphics, it will be available in China from January. The chip is a
response to export restrictions imposed by the Biden administration
and is slightly slower than the model banned in the U.S., but still
represents a significant leap in technology for the Chinese
market.
Intel (NASDAQ:INTC) – 2023 was an atypical year
for Intel, marked by significant transformation and challenges.
While facing fierce competition and declining PC sales, the company
sought leadership in graphic chips and saw a 21% decrease in
revenue with an operating loss of $2.5 billion. Surprisingly, its
shares rose 91% for the year. Analysts view Intel as undervalued
and anticipate a recovery in chip manufacturing and revenue growth.
Intel is restructuring into several companies, including a possible
division of its product and foundry businesses, which could
significantly increase its market value.
Baidu (NASDAQ:BIDU) – Baidu announced that its
generative AI chatbot, Ernie Bot, surpassed 100 million users. The
chatbot, comparable to OpenAI’s GPT-4, is part of the Chinese
company’s AI effort. Since its launch, Ernie Bot has generated
billions of words in text, code lines, and travel itineraries.
Baidu’s PaddlePaddle development platform also grew, with over 10.7
million developers and 860,000 models created.
Alibaba (NYSE:BABA), JD.com
(NASDAQ:JD) – The Beijing Supreme Court ruled in favor of JD.com in
a lawsuit against Alibaba, fining the latter $140.68 million for
monopolistic practices. The decision found that Alibaba abused its
market dominance with practices known as “choose one from two,”
seriously harming JD.com. Alibaba was previously fined $2.75
billion in 2021 for market abuse.
Tellurian (AMEX:TELL) – Struggling in the LNG
sector, Tellurian hired a financial advisor after the resignation
of its chairman, Charif Souki. The company seeks to manage its
balance sheet and faces doubts about covering future expenses while
restructuring its debt and seeing an increase in stake by a
significant investor.
United States Steel (NYSE:X) – Shares of United
States Steel rose 26% on December 18 following the announcement of
its acquisition by Nippon Steel. On the same day, CEO David B.
Burritt sold 252,458 shares for $12.6 million. This sale was part
of an automatic trading plan established in June, not a reaction to
the price increase. After the sale, Burritt still holds a
significant amount of shares. The completion of the acquisition,
expected in the third quarter of 2024, faces potential regulatory
and political challenges.
Boeing (NYSE:BA) – By the end of 2023, all
Boeing 737 MAX jets operated by Chinese airlines will be back in
service, nearly a year after resuming flights following the global
shutdown in 2019. The model, suspended after fatal accidents,
resumed global operations at the end of 2020 with modifications and
enhanced pilot training. Boeing China announced that nearly 100
planes have resumed operations. On Thursday, Boeing’s shares
retreated after the company instructed airlines to inspect 737 MAX
aircraft for a possible loose bolt in the rudder control system.
Boeing recommends inspections within two weeks but states the
planes can continue to fly safely.
VinFast (NYSE:VFS) – VinFast, a Vietnamese
electric vehicle manufacturer, established its first partnership in
the U.S. with North Carolina’s Leith Automotive Group, aiming to
boost American sales. Shifting from Tesla’s (NASDAQ:TSLA) direct
sales strategy to a hybrid model, VinFast will open 125 sales
locations in the U.S. The company, which delivered electric cars in
California and debuted on Nasdaq, also operates a $4 billion
factory in North Carolina, expected to start in 2026.
Morgan Stanley (NYSE:MS) – Veteran banker Ted
Pick will take over as CEO of Morgan Stanley next week, succeeding
James Gorman. Known for his candor and effective management, Pick
is praised for his ability to handle crisis situations, as
demonstrated during the Archegos Capital collapse. Facing a period
of economic uncertainty, Pick is considered adaptable and
disciplined, essential traits to lead the company in challenging
times.
Nasdaq Inc (NASDAQ:NDAQ) – Swedish traders are
pressing Nasdaq Inc. to shorten trading hours on the Stockholm
exchange, aiming to improve work-life balance and attract new
talent. The Stockholm exchange has one of the world’s longest
trading sessions, making it difficult to balance family life with
work, especially for mothers. Despite interest and positive
examples of reduced hours, such as the Oslo Stock Exchange, there
is resistance to change due to market liquidity concerns. Nasdaq is
open to the idea but seeks a coordinated approach across
Europe.
Altice USA (NYSE:ATUS) – Altice USA’s Cheddar
News was acquired by Archetype, owner of various publications
including Sunset magazine and Military Times. Financial details of
the deal were not disclosed. Archetype, backed by Regent LP, plans
to expand Cheddar’s reach. Shares of Altice USA rose up to 18% in
the last 7 days following news of a potential acquisition of
Altice’s Portuguese operations by Xavier Niel.
Penn Entertainment (NASDAQ:PENN) – Hedge fund
HG Vora Capital Management, holding 18.5% of Penn Entertainment,
including ordinary shares and swaps, expressed interest in
obtaining board seats. The fund argued that the casino operator and
online betting company’s shares were undervalued and discussed
strategies to increase shareholder value. They requested to appoint
qualified directors to work with management and other board members
to maximize the company’s potential.
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