U.S. index futures are up in pre-market trading on Friday,
signaling an optimistic weekly close for the three major indexes,
which are heading for their third consecutive week of gains.
At 06:04 AM, Dow Jones futures (DOWI:DJI) rose 76 points, or
0.22%. S&P 500 futures rose 0.20% and Nasdaq-100 futures rose
0.02%. The yield on 10-year Treasury bonds was at 4.393%.
In the commodities market, West Texas Intermediate crude oil for
December rose 0.99%, to $73.62 per barrel. Brent crude for January
rose 0.98% to near $78.18 per barrel. Iron ore with a concentration
of 62%, traded on the Dalian exchange, fell 2.2%, to $130.96 per
ton.
On the economic agenda this Friday, investors are waiting for
new home construction data at 08:30 AM, and the Baker Hughes rig
count at 1:00 PM. Throughout the day, speeches are expected from
the President of the Chicago Fed, Austan Goolsbee, the President of
the Boston Fed, Susan Collins, and the President of the San
Francisco Fed, Mary Daly. Additionally, the U.S. Congress faces a
midnight deadline to approve a federal spending measure.
European markets are optimistic, with a focus on healthcare
stocks, while waiting for a speech from ECB President Christine
Lagarde. Investors are monitoring new inflation data, following
signs of a slowdown in the U.S. and UK. In the UK, retail sales
fell 0.3% in October, defying expectations. Sales of fuels and food
also declined. Eurozone inflation slowed significantly, with the
annual rate falling to 2.9% in October. Inflation excluding energy,
food, and beverages saw a slight reduction.
Hong Kong’s market led the declines in Asia-Pacific, highlighted
by a nearly 10% drop in Alibaba’s (NYSE:BABA) shares. The Hang Seng
index fell 2.12% and the Hang Seng Tech index declined 1.7%.
Despite this, the Hang Seng is still expected to see weekly gains
of 1.5%. Alibaba’s decision not to split its cloud group, impacted
by U.S. chip export restrictions, influenced the market. Other
Asian indexes varied: Shanghai SE rose 0.11%, Nikkei increased
0.48%, Kospi fell 0.74%, and ASX 200 decreased 0.13%.
At Thursday’s close, U.S. stocks had a modest performance, with
the Dow closing slightly down, while the Nasdaq and S&P 500 saw
small gains. A decline in Walmart’s (NYSE:WMT) shares negatively
impacted the Dow, while gains in the Nasdaq and S&P 500 were
driven by optimistic economic data, including a drop in U.S. import
and export prices. Concerns about the job market persisted, with an
unexpected increase in unemployment claims reported yesterday.
Industrial production fell more than expected, and the energy
sector suffered from falling oil prices.
On the corporate earnings front this Friday, investors will be
watching reports from Yatra (NASDAQ:YTRA), BJ’s Wholesale
(NYSE:BJ), Atkore (NYSE:ATKR), Spectrum Brands (NYSE:SPB), Twist
Bioscience (NASDAQ:TWST), among others.
Wall Street Corporate Highlights for Today
Apple (NASDAQ:AAPL) – Apple plans to adopt the
Rich Communication Services (RCS) standard next year, making
communication between iPhones and Android devices easier. After
resisting RCS, Apple has yielded to pressure from companies like
Google (NASDAQ:GOOGL). RCS will allow high-quality photo and video
sending and other advanced functionalities, improving
interoperability with iMessage.
Meta Platforms (NASDAQ:META) – Meta Platforms
introduced two AI features for video editing: Emu Video and Emu
Edit. Emu Video creates four-second videos from captions, photos,
or images, while Emu Edit allows for text-instructed video editing.
These tools represent an advancement of the Emu model, which
generates text-based images, reflecting Meta’s growing interest in
AI.
IBM (NYSE:IBM) – IBM suspended its advertising
on Elon Musk’s social media platform after a report revealed its
ads appeared alongside content promoting Adolf Hitler and the Nazi
Party. The decision follows Musk’s endorsement of an antisemitic
post on the platform. IBM stated it has zero tolerance for hate
speech and discrimination.
Amazon (NASDAQ:AMZN), Hyundai
(USOTC:HYMLY) – Starting next year, Amazon will begin selling
Hyundai cars online in the USA. Customers can select, customize,
and purchase Hyundai vehicles directly on Amazon’s website and
schedule delivery with a local dealership. This deal expands a
prior partnership between the two companies and includes access to
Amazon’s Alexa voice assistant in new Hyundai vehicles starting in
2025.
Alibaba (NYSE:BABA) – Alibaba Group’s shares
fell 10% in Hong Kong after the company scrapped plans to split its
cloud business due to U.S. export restrictions on semiconductors.
The company’s U.S.-listed shares closed 9% lower on Thursday. The
decline is the largest in over a year, significantly reducing the
Chinese tech giant’s market value.
Starbucks (NASDAQ:SBUX) – Workers at hundreds
of Starbucks stores in the USA went on strike on Red Cup Day,
demanding better conditions and wages. Despite some store closures,
the majority remained open. The event, usually a major traffic
driver, faced protests from employees represented by the Workers
United union, demanding better working conditions and criticizing
recent wage increases as insufficient.
Applied Materials (NASDAQ:AMAT) – Shares of the
semiconductor company fell more than 7%. According to Reuters,
Applied Materials is under investigation by the Department of
Justice on suspicions of circumventing export limitations imposed
on Chinese semiconductor manufacturer SMIC.
General Motors (NYSE:GM) – General Motors’
provisional labor deal with the United Auto Workers was ratified,
marking the first approval among Detroit automakers. In other news,
following an accident that halted its operations, GM’s robotaxi
unit Cruise suspended its employee stock buyback program. The
company will reassess the program, which was interrupted due to
delays in commercialization timelines and revenue generation. GM is
also restructuring its BrightDrop electric commercial vehicle unit
to more closely integrate it with the company and cut costs.
BrightDrop’s CEO Travis Katz will leave the company, although the
reason for his departure was not specified.
Toyota (NYSE:TM) – Redwood Materials sealed a
long-term contract to supply Toyota with recycled materials for its
electric vehicle battery factory in North Carolina, valued at $13.9
billion. Financial details were not disclosed. The company will
recycle EV battery components, boosting its closed-loop battery
ecosystem in the USA.
Apollo Global Management (NYSE:APO) – Panasonic
(USOTC:PCRFY) agreed to sell part of its automotive systems unit in
collaboration with Apollo Global Management. The transaction is
part of the company’s strategy to restructure after becoming a
holding company. The automotive unit accounted for about 15% of
Panasonic’s sales in the last fiscal year.
Boeing (NYSE:BA) – Marc Allen will leave his
position as Boeing’s chief strategy officer at the end of the year
and exit the company in 2024. Boeing will restructure its strategy
teams to work directly with business units. Brian West and Mike
D’Ambrose will create a realignment plan. Additionally, Boeing
announced a partnership with the U.S. government to address
challenges in using sustainable aviation fuel (SAF) in the APEC
region. SAF, crucial for reducing carbon emissions in aviation, is
produced in small quantities and is more expensive than
conventional fuel. Boeing will work with the government to identify
raw materials and optimize production. The company has acquired 7.6
million gallons of SAF for its U.S. operations since 2022.
BP (NYSE:BP) – BP is seeking partners for
offshore wind projects in Japan and considering investing in
hydrogen technology. This is part of the company’s plan to expand
into renewable energies and face challenges like inflation and
equipment bottlenecks in the sector.
TotalEnergies (NYSE:TTE) – Environmental groups
have called on financiers to withdraw support from TotalEnergies’
$20 billion LNG terminal in Mozambique, citing climate risks and
human rights violations. The letter, supported by over 100
organizations, highlights the financiers’ responsibility.
Northrop Grumman (NYSE:NOC) – Northrop Grumman
is considering producing 120mm ammunition in Poland in partnership
with local company Mesko. Poland seeks to strengthen its defense,
expanding its purchases of equipment, including Abrams tanks from
the USA. Northrop plans to expand its business across Europe.
Freeport-McMoRan (NYSE:FCX) –
Freeport-McMoRan’s CEO, Richard Adkerson, expressed optimism about
improving relations between the USA and China, following talks
between Joe Biden and Xi Jinping. However, Adkerson acknowledged
significant issues still divide the two countries. He also
highlighted Indonesia’s growing strategic importance in
international relations.
Sasol (NYSE:SSL) – Sasol Ltd. had to cancel its
annual general meeting due to environmental activists storming the
stage, protesting the company’s carbon emissions. Some investors
plan to reject Sasol’s climate resolutions, citing its
unsatisfactory record on environmental goals.
Jacobs Solutions (NYSE:J) – Jacobs Solutions is
in talks to merge its government segment, valued at over $4
billion, with Amentum Services Inc. The merger would create a new
publicly traded company, predominantly owned by Jacobs
shareholders, using the Reverse Morris Trust structure for tax
exemption. The deal could be announced soon.
3M (NYSE:MMM) – 3M announced that its
independent health business after the spin-off will be named
Solventum. The division, planned for the first half of 2024, will
retain a 19.9% stake from 3M and focus on wound care, oral hygiene,
and health technology, generating about $8.4 billion in sales in
2022. Bryan Hanson was named CEO, and the name Solventum represents
innovative solutions and rapid innovation.
Eli Lilly (NYSE:LLY) – Eli Lilly plans to build
a $2.17 billion factory in Germany, responding to the need to
produce essential health closer to markets. This is Lilly’s first
major production complex in Germany, creating over 1,000 jobs,
including related business impacts. The facility will produce
diabetes medications and potentially obesity drugs, reflecting the
growing demand for Lilly’s Mounjaro medication.
Merck (NYSE:MRK) – The Food and Drug
Administration (FDA) approved Merck’s Keytruda medication for
treating gastrointestinal cancers in adults, combined with
chemotherapy, based on advanced trials that showed improvements in
overall survival compared to chemotherapy alone. This is Keytruda’s
seventh indication in the USA.
Walgreens Boots Alliance (NASDAQ:WBA) –
Walgreens will close most of its stores and pharmacies on
Thanksgiving Day for the first time, due to employee resistance to
poor working conditions. CVS Health (NYSE:CVS) will also close
non-24-hour pharmacies on the holiday.
Goldman Sachs (NYSE:GS) – Masanori Mochida, the
president of Goldman Sachs’ Japanese unit, will retire after more
than 30 years at the U.S. investment bank. His retirement decision
was accelerated due to growing internal concern about the need for
new leadership in Tokyo amidst competition with rival U.S.
investment banks.
Citigroup (NYSE:C) – Geopolitical tensions and
economic shocks are leading companies to diversify their supply
chains, as highlighted by Citigroup CEO Jane Fraser. This follows
events like the pandemic and Russia’s invasion of Ukraine.
Additionally, the shift in globalization seeks more resilient
supply chains and diversified trade relations. Fraser also praised
regional free trade agreements. Furthermore, Citigroup confirmed it
is following its restructuring plan, which runs until March.
However, it did not comment on reports of job cuts supposedly to be
announced daily in the coming days. CEO Jane Fraser promised
additional details about the bank’s simplification in January.
Wells Fargo (NYSE:WFC) – U.S. regulators are
pressing Wells Fargo to improve detection of criminal activities,
focusing on its consumer monitoring systems. Following a scandal in
2016, compliance efforts face criticism, and a public penalty is
still possible. The bank also faces charges related to an alleged
Ponzi scheme, which it denies having knowledge of or assisting.
Santander (NYSE:SAN) – Santander issued $2.5
billion in tier 1 bonds, aligning with similar issuances by other
European banks. These AT1 bonds act as safety buffers in case of
drops in capital levels and can be converted into shares if the
bank’s common tier 1 capital ratio falls below 5.125%.
BlackRock (NYSE:BLK) –
BlackRock has filed for a spot Ethereum ETF, the
iShares Ethereum Trust, to be listed on Nasdaq, allowing investors
direct access to ether without owning it. This move follows
optimism in the cryptocurrency sector and the growing acceptance of
such investments by the SEC.
Earnings
Applied Materials (NASDAQ:AMAT) – Applied
Materials earned $2.12 per share in the fourth quarter on an
adjusted basis, beating estimates of $2.00. Revenue also exceeded
expectations. The company forecast first-quarter revenue above
analysts’ estimates, but its shares fell more than 7% following
news that the company is under criminal investigation in the U.S.
for possible violations of chip export restrictions to China. The
company expects revenue of $6.47 billion in the first quarter. The
rules aim to stem the flow of U.S. technology that could be used to
bolster China’s military and intelligence capabilities. CEO Gary
Dickerson sees no additional material impact at this time.
Grab Holdings (NASDAQ:GRAB) – Grab announced
its first adjusted core profit for the third quarter, driven by
demand for its food delivery and ride-hailing services. Revenue
increased 61% to $615 million, beating analyst estimates. The
company now forecasts 2023 revenue in the range of $2.31 billion to
$2.33 billion and lowered its full-year adjusted core loss
forecast.
ChargePoint (NYSE:CHPT) – Shares of the
electric vehicle charging network fell 22.5% after the company
announced a restructuring of its top management. Rick Wilmer, who
was the COO, was named ChargePoint’s new CEO, replacing Pasquale
Romano effective November 16. At the same time, ChargePoint
released preliminary third-quarter results, including a revenue
forecast of between $108 and $113 million, below the $150 to $165
million previously estimated.
Dolby Laboratories (NYSE:DLB) – Dolby
Laboratories issued a below-expectation earnings and sales forecast
for the next fiscal year. The company forecast 2024 sales of about
$1.3 billion, below estimates, and earnings per share of between
$2.30 and $2.45, also below expectations. Fourth-quarter earnings
per share fell short of estimates, but sales beat them, driven in
part by Apple’s new iPhones that use Dolby technology.
Gap (NYSE:GPS) – Shares rose 17.8% in
pre-market trading on Friday in response to the positive
third-quarter results reported by the apparel company, exceeding
expectations. Gap reported adjusted earnings of 59 cents per share
on revenue of $3.77 billion. These numbers exceeded the forecasts
of analysts consulted by LSEG, who estimated a profit of 19 cents
per share and revenue of $3.60 billion.
Ross Stores (NASDAQ:ROST) – The clothing
retailer rose 7.3% after beating estimates in the third quarter.
Ross reported earnings of $1.33 per share on revenue of $4.92
billion, while analysts polled by LSEG were forecasting earnings of
$1.22 per share on revenue of $4.85 billion.
Compass Minerals International (NYSE:CMP) –
Compass Minerals released a report with a steeper-than-expected
loss for the fourth fiscal quarter. Compass Minerals reported an
adjusted loss of 6 cents per share, in contrast to the forecast of
analysts surveyed by FactSet, which estimated a loss of 2 cents per
share.
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