In the pre-market on Thursday, U.S. index futures are showing
slight variations, marking a pause after a three-day streak of
continuous losses in the Dow Jones.
At 05:35 AM, the Dow Jones futures (DOWI:DJI) fell 14 points, or
0.04%. S&P 500 futures rose 0.04% and Nasdaq-100 futures
advanced 0.26%. The yield on 10-year Treasury bonds stood at
4.081%.
In the commodities market, West Texas Intermediate crude oil for
February rose 0.70% to $73.04 per barrel. Brent crude for March
rose 0.46%, near $78.24 per barrel. Iron ore with a 62%
concentration grade, traded on the Dalian exchange, fell 0.58% to
$130.00 per metric ton.
On Thursday’s economic agenda, investors are awaiting December’s
new home construction data to be published at 08:30 AM by the
Commerce Department. At the same time, unemployment insurance
claims for the week ending last Saturday will be released by the
Department of Labor. The position of oil stocks until last Friday
will be published at 11:00 AM by the Department of Energy
(DoE).
The Hong Kong and mainland China stock markets rebounded, with
the CSI 300 index gaining 1.41% and the Hang Seng rising 0.89%.
This follows China’s economic growth of 5.2% in the last quarter,
slightly below expectations. Concurrently, the Minister of
Transport of Singapore resigned and faces corruption charges.
Meanwhile, the Australian market continued to decline, and Japan
and South Korea showed mixed results. The Australian labor market
surprisingly underperformed, with the unemployment rate stable, but
the number of jobs fell significantly.
European stock markets showed mixed performance, with investors
focused on updates from the World Economic Forum in Davos,
Switzerland. The Stoxx 600 index rose slightly with technology
sectors advancing, while utilities fell. European central banks,
present in Davos, maintain a cautious stance on interest rate cuts.
Shares of Watches of Switzerland (LSE:WOSG), a prominent Swiss
watch retailer, plummeted after a revision of projections. French
business climate data for December is awaited, with no significant
corporate releases.
U.S. stocks closed lower on Wednesday, with the Dow Jones
falling 0.25% to 37,266.67 points, the S&P 500 retreating 0.56%
to 4,739.21 points, and the Nasdaq losing 0.59% to 14,855.62
points. Uncertainty over interest rates and a rise in U.S. retail
sales contributed to the negative trend. Shares of airline and gold
mining companies also performed poorly.
For Thursday’s quarterly earnings front, scheduled to present
financial reports are Texas Capital Bank
(NASDAQ:TCBI), Fastenal (NASDAQ:FAST),
Truist Financial Corp (NYSE:TFC),
KeyBank (NYSE:KEY), Northern
Trust (NASDAQ:NTRS), and more, before the market opens.
After the close, numbers from PPG (NYSE:PPG),
J.B. Hunt (NASDAQ:JBHT), First National
Bank (NYSE:FNB), OceanFirst Bank
(NASDAQ:OCFC), among others, will be awaited.
Wall Street Corporate Highlights for Today
Apple (NASDAQ:AAPL) – Samsung has launched its
latest premium smartphones, featuring AI capabilities such as
real-time translation of phone calls in foreign languages, to
compete with Apple, which surpassed Samsung in smartphone shipments
in 2023. Apple achieved a market share of 20% in 2023, according to
IDC. Samsung was second with 19.4%, followed by Xiaomi, Oppo, and
Transsion. Apple and Transsion were the only ones to register sales
growth last year, in a global market that fell 3.2%. Additionally,
Apple will begin selling altered versions of its Series 9 and Ultra
2 watches in the U.S. without the blood oxygen monitoring
functionality, following a legal setback in the patent dispute with
Masimo Corp (NASDAQ:MASI). The change comes after
the U.S. Court of Appeals refused to grant a longer pause in the
import ban imposed by the U.S. International Trade Commission. This
situation is unique for Apple, which typically does not remove
features from devices.
Meta Platforms (NASDAQ:META) – Sheryl Sandberg,
former COO of Meta, plans to leave the company’s board of directors
after her term expires in May. She praised the state of the
“metabusiness” and will serve as an advisor. Mark Zuckerberg looks
forward to a “new chapter together”. Sandberg played a prominent
role in the company, defending it during controversies and
contributing to its advertising business model.
Alphabet (NASDAQ:GOOGL) – Google will adjust
search results to prioritize comparison sites, in compliance with
new EU rules. This may affect revenue and remove features, such as
Google Flights. Other changes include making it easier to switch
search engines and allowing data movement to third-party apps.
Proposals may undergo changes until March 7. Additionally, Google
CEO Sundar Pichai announced more job cuts at Alphabet this year,
focused on simplifying and speeding up certain areas as the company
seeks to adopt artificial intelligence and automation technology to
improve efficiency. These cuts will not be as extensive as the
previous year’s, with ambitious goals maintained.
Amazon (NASDAQ:AMZN) – Diamond Sports Group, an
affiliate of Sinclair Broadcast, will emerge from bankruptcy with
financial support from Amazon. Amazon will invest $115 million and
use Prime Video to offer Diamond’s regional channels, broadcasting
sports games and pre- and post-game programming. Sinclair also
agreed to pay $495 million in cash and provide management services
to support Diamond’s reorganization, gradually ending the Bally
naming rights contract after the 2024 baseball season.
Intel (NASDAQ:INTC) – Intel gained an advantage
in its legal dispute with European Union regulators, receiving a
favorable opinion from Advocate General Laila Medina of the Court
of Justice of the EU. The opinion supported Intel against the
annulment of a previous decision that invalidated a record
antitrust fine of $1.15 billion. Intel was accused of
anticompetitive practices, but the block’s highest court often
follows such opinions. The commission also imposed a new fine on
Intel, which is being contested.
Verizon (NYSE:VZ) – Verizon announced a $5.8
billion write-down in the fourth quarter due to the devaluation of
its fixed-line business. This unit, serving business and government
customers, represents more than a fifth of the company’s revenue.
Intense competition, an uncertain economy, and a preference for
wireless services have pressured the fixed-line sector. After the
charge, the unit’s goodwill balance was $1.7 billion.
Boeing (NYSE:BA) – The FAA concluded
inspections on Wednesday of 40 of the 171 grounded Boeing 737 MAX 9
aircraft after a cabin incident in January 2018. Data analysis and
a decision on resuming flights are pending. Alaska
(NYSE:ALK) and United Airlines (NASDAQ:UAL),
operators of the model, canceled flights until Friday.
TuSimple Holdings (NASDAQ:TSP) – TuSimple
Holdings announced its voluntary exit from Nasdaq and the
discontinuation of its SEC registration, resulting in a 8.2%
pre-market drop on Thursday following a significant share price
decline on Wednesday. The company cited decreased valuation, share
liquidity and volatility, along with the impact of high interest
rates. TuSimple intends to end trading on February 7 and seeks to
restructure as a private company. Its operating loss for the nine
months until September 2023 was $248.6 million, a reduction from
2022.
Tesla (NASDAQ:TSLA) – Tesla reduced the prices
of Model Y in Europe, including in Germany, in response to slowing
electric vehicle demand and price revisions by brokerages. The
company faced challenges in Germany in 2023, losing its position as
the top electric vehicle seller to Volkswagen. The price reduction
may be an attempt to boost sales and regain market leadership.
Goodyear Tire & Rubber Co. (NASDAQ:GT) –
Goodyear Tire & Rubber Co. is planning to appoint Mark Stewart
as its new CEO, following pressure from activist investor Elliott
Investment Management. The company plans to announce the
appointment soon, not directly linking it to the agreement with
Elliott.
Plug Power (NASDAQ:PLUG) – Plug Power announced
plans to sell up to $1 billion in shares, after a sharp decline of
over 80% in share value over a year. Facing mounting losses, supply
chain challenges, and production delays, the company seeks
additional capital to fund its business plans. Susquehanna
downgraded the stock rating, citing concerns over financing and
less favorable tax credits.
Albemarle (NYSE:ALB) – Albemarle, the world’s
leading lithium producer, announced job cuts and postponement of
spending on a U.S. refinery project due to falling lithium prices.
Supply exceeded demand, affecting the price of the metal used in
electric vehicle batteries. The company plans to reduce capital
expenditures in 2024 and delay a major lithium refining project in
South Carolina. Albemarle also plans to complete refineries in
China and Australia and prioritize licensing to reopen a lithium
mine in North Carolina. The cost reduction aims to save $95 million
annually. Albemarle will also sell its stake in Australia’s
Liontown Resources after a blocked offer last year.
Citigroup (NYSE:C) – Citigroup plans to lay off
about 20 equity researchers in Asia-Pacific as part of its global
restructuring. Most cuts will occur in Japan, Australia, Korea, and
two in Hong Kong. This will have a limited impact on the bank’s
regional research workforce. Citigroup is in the process of
reorganization that may result in up to 20,000 job eliminations
over the next two years. Additionally, three senior executives have
left the bank’s equity trading division.
Goldman Sachs (NYSE:GS) – Goldman Sachs CEO
David Solomon expressed optimism about the U.S. economy in 2024 but
warned about persistent inflation, especially in sectors like
labor, food, and energy. Solomon highlighted the economy’s
resilience compared to previous slowdown concerns.
Charles Schwab (NYSE:SCHW) – Charles Schwab’s
fourth-quarter profit fell 47% due to higher interest payments on
client deposits and debts, impacting earnings. Schwab reported a
profit of $1.05 billion, or 51 cents per share, compared to $1.97
billion, or 97 cents per share, in the same period last year.
However, asset management fees increased by 18%, boosting
revenue.
Kinder Morgan (NYSE:KMI) – In the fourth
quarter of 2023, Kinder Morgan reported an adjusted profit of 28
cents per share, below the average estimate of 30 cents per share.
Earnings in the CO2 segment dropped to $170 million, compared to
$194 million the previous year. The company raised its adjusted
profit guidance for 2024 to $1.22 per share, from the previous
forecast of $1.21 per share.
TSMC (NYSE:TSM) – TSMC, the global leader in
chip manufacturing, announced global expansion plans and the
construction of a factory in Germany. Despite a 19% lower quarterly
net profit, it exceeded expectations with $7.6 billion. TSMC
forecasts revenue growth above 20% and investments of $28 to $32
billion in 2024, facing a scenario of disputes between the U.S. and
China and uncertainties in the industry.
Alcoa (NYSE:AA) – Alcoa exceeded expectations
in the fourth quarter with a smaller than expected adjusted loss,
but the outlook for 2024 is not positive, with an expected
reduction in aluminum sales. Alcoa reported an adjusted loss of 56
cents per share and sales of $2.6 billion in the fourth quarter,
surpassing expectations of a loss of 84 cents and sales of $2.6
billion. In the previous year, the loss was 70 cents per share with
sales of $2.7 billion. Alumina production fell 13% to 10.9 million
tons, and aluminum shipments decreased by 3% to 2.5 million tons.
For 2024, Alcoa forecasts to produce about 9.9 million tons of
alumina and ship approximately 2.3 million tons of aluminum.
Discover Financial Services (NYSE:DFS) – Shares
fell by 11% in pre-market trading on Thursday after Discover
Financial Services reported quarterly revenues of $4.20 billion,
surpassing analysts’ estimates of $4.10 billion, according to
analysts surveyed by LSEG. GAAP earnings of $1.54 per share were
not immediately comparable.
H.B. Fuller (NYSE:FUL) – Fuller achieved an
adjusted profit of $1.32 per share, surpassing FactSet’s average
estimate of $1.27 per share. However, revenue in the last quarter
of $902.9 million was lower than the expected $929.9 million.
Diageo (NYSE:DEO) – Diageo and Sean Combs,
known as Diddy, resolved a lawsuit in which Combs accused the
company of neglecting the Cîroc Vodka and DeLeón Tequila beverage
brands, alleging racism. With the resolution, Combs withdrew the
charges and Diageo will assume full ownership of DeLeón, ending
their commercial relationship with Combs. Financial details of the
settlement were not disclosed. Diageo faced criticism over its
commitment to diversity following the accusations.
OceanFirst Financial (NASDAQ:OCFC)
Historical Stock Chart
From Aug 2024 to Sep 2024
OceanFirst Financial (NASDAQ:OCFC)
Historical Stock Chart
From Sep 2023 to Sep 2024