In the pre-market on Friday, U.S. index futures show a mixed
performance. Investors are carefully assessing the recent tougher
statements from Jerome Powell, the Federal Reserve Chairman, along
with a thorough analysis of quarterly financial reports from
companies.
At 5:56 AM, Dow Jones futures (DOWI:DJI) rose by 37 points, or
0.11%. S&P 500 futures fell by 0.02%, and Nasdaq-100 futures
declined by 0.18%. The yield on the 10-year Treasury bonds was at
4.644%.
In the commodities market, December West Texas Intermediate
crude oil rose by 0.87% to $76.40 per barrel. January Brent crude
oil increased by 0.90% to near $80.74 per barrel. Iron ore with a
62% concentration, traded on the Dalian Exchange, rose by 2.56%,
quoted at $131.66 per ton.
On the economic agenda for Friday, investors await speeches from
Lorie Logan, President of the Dallas Fed, at 07:30 AM, and Raphael
Bostic, President of the Atlanta Fed, at 09:00 AM. The University
of Michigan Consumer Sentiment, projected at 63.70 points for
November, will be released at 10:00 AM. Baker Hughes will report
the weekly rig count at 13:00 PM.
In Asian markets, there was a widespread decline influenced by
concerns about rising interest rates in the U.S. Additionally, in
China, property developer Country Garden plans to restructure
significant offshore debt by the end of the year.
In Europe, the UK economy avoided a recession in the third
quarter, with stable performance and industrial production
exceeding expectations. A speech by Christine Lagarde, President of
the European Central Bank, is scheduled for 07:30 AM.
On Thursday, the Nasdaq and S&P 500 ended their long winning
streaks. The Dow Jones dropped by 220.33 points (0.65%), the
S&P 500 declined by 35.43 points (0.81%), and the Nasdaq fell
by 128.97 points (0.94%). The drop followed a 30-year bond auction
with below-average demand and comments from Jerome Powell on
monetary policy. Airline, pharmaceutical, and biotechnology sectors
also saw declines, while telecommunications company Infinera
(NASDAQ: INFN) stocks rose.
The Federal Reserve Chairman has been signaling the possibility
of further interest rate hikes since September, causing market
unrest with his recently more assertive tone. Contrary to
expectations of an end to the interest rate hiking cycle, Powell
indicated that rates may continue to rise. This is reflected in the
increase of more than 1 basis point in the ten-year note, a key
indicator in the global market.
In the corporate earnings front for Friday, investors will be
watching for reports from Silver Spike
(NASDAQ:SSIC), Algonquin Power (NYSE:AQN),
AlgloGold Ashanti (NYSE:AU),
Hudson (NASDAQ:HSON), AirSculp
(NASDAQ:AIRS), Creative Realities (NASDAQ:CREX),
among others.
Wall Street Corporate Highlights for Today
Apple (NASDAQ:AAPL) – Apple has agreed to pay
$25 million to settle charges by the U.S. Department of Justice of
illegally favoring immigrant workers over American citizens and
green card holders for certain jobs. The settlement involves civil
fines and compensation for affected workers. Apple has committed to
align its recruitment practices and train employees on
anti-discrimination laws.
Alphabet (NASDAQ:GOOGL) – Google’s experimental
chatbot, Bard, may develop another product with two billion users,
said a director at the Reuters NEXT conference in New York. Bard
represents Alphabet’s ambition in AI and faces increasing
competition in the virtual assistant sector.
Meta Platforms (NASDAQ:META) – Meta Platforms
has closed a deal with Tencent Holdings to sell a new low-cost
virtual reality (VR) headset in China, aiming to re-enter the
market where Facebook and Instagram are blocked. Tencent will be
the exclusive seller of Meta’s headsets in China starting in 2024.
This deal enables Meta to compete in the Chinese market, primarily
against Bytedance, the creator of the VR headset Pico. Meta plans
to use cheaper lenses than those in the Quest 3 in this new model,
which will also be sold in other markets.
Verizon (NYSE:VZ), Netflix
(NASDAQ:NFLX), Warner Bros Discovery (NASDAQ:WBD)
– Verizon plans to offer ad-supported versions of Netflix and
Warner Bros Discovery’s Max for about $10 per month, instead of
$17. The discounted bundle is expected to be announced in the
coming weeks, with revenue shared between the companies.
TKO Group Holdings (NYSE:TKO) – Vince McMahon,
CEO of TKO Group Holdings, plans to sell approximately $700 million
in shares (about 25% of his stake in TKO) in the combined UFC and
WWE company. This move may signal his eventual exit from WWE and
TKO.
PDD Holdings (NASDAQ:PDD),
JD.com (NASDAQ:JD), Alibaba
(NYSE:BABA) – The intense price war among Chinese e-commerce
retailers on “Singles’ Day” exposes weakness in domestic
consumption and raises concerns about the slowdown in the world’s
second-largest economy as consumer confidence wavers.
Groupon (NASDAQ:GRPN) – Groupon shares fell
more than 31% in pre-market trading after announcing a new rights
offering and challenging business conditions. The $80 million
offering will allow the purchase of shares at $11.30 each.
Third-quarter revenue fell to $126.5 million, with a net loss of
$41.4 million. Additionally, Eric Lefkofsky, co-founder, will leave
the company’s board.
Diageo (NYSE:DEO) – Diageo, the maker of
Johnnie Walker, projects a drop in operating profit in the first
half of the fiscal year due to weak performance in Latin America
and the Caribbean. Its shares fell 13.6% in pre-market trading on
Friday. The company faces lower consumption and a demand for more
affordable products in the region.
UnitedHealth (NYSE:UNH) – UnitedHealth, through
its pharmaceutical benefits management unit Optum Rx, announced the
inclusion of eight insulin products on its reimbursement list,
limiting consumer spending to $35 or less. Starting on January 1,
these products, including short-acting and rapid-acting insulins,
will have preferred status, ensuring lower prices.
Walgreens Boots Alliance (NASDAQ:WBA) –
Walgreens further reduced its stake in Cencora (formerly
AmerisourceBergen Corp) by selling approximately $674 million worth
of shares. With this sale, Walgreens now owns about 15% of the drug
distributor, using the proceeds to reduce debt. Walgreens remains
the largest shareholder of Cencora.
Novo Nordisk (NYSE:NVO) – Novo Nordisk will
invest over $6 billion in its production unit in Denmark to meet
the growing global demand for the weight loss treatment Wegovy.
This includes increasing the capacity for GLP-1 products like
semaglutide, the primary ingredient in Wegovy and the diabetes
treatment Ozempic. The expansion in Kalundborg will boost
manufacturing and packaging capacity, with completion expected
between 2025 and 2029.
Eli Lilly (NYSE:LLY) – Eli Lilly has not yet
received approval in the UK for the Mounjaro injection device, its
treatment for obesity and diabetes, despite approval of the
medication. The company aims to secure sustainable supply and
awaits final approval from the NHS.
Goldman Sachs (NYSE:GS) – Goldman Sachs is
developing twelve projects involving generative artificial
intelligence, including coding via English commands and document
creation, according to an executive at the Reuters NEXT conference.
These projects do not have direct customer interaction due to
financial sector regulations.
BlackRock (NYSE:BLK) – BlackRock has registered
an ethereum trust, indicating interest in a related ETF. The
iShares Ethereum Trust was registered in Delaware, with Nasdaq
proposing its listing. This follows the creation of a bitcoin trust
by BlackRock, targeting cryptocurrency ETFs.
Moody’s (NYSE:MCO) – The banking sector still
faces risks, including reflation, if banks do not adequately
anticipate interest rate movements, said Ana Arsov of Moody’s at
Reuters Next. The sector in the US has been hit by the decline of
Silicon Valley Bank and concerns about regional and midsize banks,
leading to downgrades by Moody’s. Arsov emphasized the importance
of banks adjusting their portfolios to deal with interest rates and
potential losses.
Polestar Automotive (NASDAQ:PSNY) – Israeli
startup StoreDot has partnered with Polestar to integrate its
fast-charging batteries, which recharge nearly fully in 10 minutes,
into Polestar vehicles. Cars with this technology are expected on
the roads by 2027.
Fisker (NYSE:FSR) – US electric vehicle startup
Fisker is in talks with five automakers to expand production. CEO
Henrik Fisker plans to launch two new models by 2025, requiring
additional capacity beyond the partnership with Foxconn in
Ohio.
Nio (NYSE:NIO) – Chinese automaker Nio is
considering entering the North American market in 2025, according
to Ganesh Iyer, CEO of Nio USA. Speaking at the Reuters Events
Automotive USA 2023 conference, Iyer highlighted the search for
partnerships and the need to build infrastructure in North America
to offer an immersive experience to users.
Tesla (NASDAQ:TSLA) – Tesla is expanding its
operations to South America, registering Tesla Chile and hiring
employees for new operations in the country. The Santiago-based
company may open branches in other cities and countries. This will
be Tesla’s first direct commercial operation in South America.
Earnings
The Trade Desk (NASDAQ:TTD) – Shares fell 27.5%
in pre-market trading on Friday due to an unfavorable outlook for
the current quarter. The company projected revenue of $580 million
in the fourth quarter, below the LSEG analysts’ estimate of $610
million. However, the company exceeded third-quarter adjusted
profit and revenue expectations.
Unity Software (NYSE:U) – The video game
software development company saw a 14.1% decline in pre-market
trading on Friday due to below-expected results in the third
quarter, with revenue of $544 million, below the LSEG consensus
estimate of $554 million, and no future projections.
Synaptics (NASDAQ:SYNA) – The computer hardware
company reported first-quarter fiscal results that exceeded Wall
Street’s forecasts. Synaptics announced an adjusted earnings per
share of 52 cents, with revenues reaching $238 million. Analysts
had estimated earnings of 40 cents per share and revenues of $233
million, as reported by LSEG.
Plug Power (NASDAQ:PLUG) – Plug Power recorded
a loss of $283.5 million in the third quarter, or 47 cents per
share, causing shares to drop 29% in pre-market trading. The
company faces supply challenges and reported revenues of $199
million, below the expected $220 million.
Capri Holdings (NYSE:CPRI) – The luxury fashion
group reported mixed results in the second fiscal quarter. Capri
reported adjusted earnings of $1.87 per share and revenue of $1.29
billion, surpassing analysts’ estimates of $1.52 per share but
falling short of revenue expectations of $1.34 billion. CEO John D.
Idol attributed the underperformance to macroeconomic factors and
challenges associated with e-commerce expansion.
Wynn Resorts (NASDAQ:WYNN) – Wynn Resorts saw
its shares decline by 4.8% in pre-market trading on Friday after
releasing third-quarter financial results. Wynn Resorts reported
earnings per share of $0.99 for the third quarter, $0.25 better
than analysts’ estimates of $0.74. Quarterly revenue was $1.67
billion, exceeding the consensus estimate of $1.58 billion.
Although the company achieved its profit and revenue targets, it
reported a revenue decline at Encore Boston Harbor compared to the
previous year.
Canopy Growth (NASDAQ:CGC) – Cannabis producer
Canopy Growth reported a reduced adjusted loss in the second
quarter due to cost-cutting measures. The company, facing liquidity
issues, has taken steps to become profitable, including layoffs,
exiting international markets, closing stores, and divesting from
the Canadian retail sector. Canopy’s adjusted loss was reduced to
$8.62 million, with a 21% drop in net revenue.
Illumina (NASDAQ:ILMN) – Illumina experienced a
more than 8% decline in pre-market trading after the biotechnology
company lowered its full-year adjusted profit outlook to a range of
60 cents to 70 cents per share, contrasting with analysts’
expectations of 80 cents per share, according to LSEG. While
exceeding expectations for adjusted earnings per share in the third
quarter, revenues fell short of analysts’ estimates.
Doximity (NYSE:DOCS) – Doximity announced that
its board has authorized the repurchase of up to $70 million in
common shares over the next 12 months. The online platform for
healthcare professionals reported earnings per share of $0.22 in
the third quarter, surpassing analysts’ estimate of $0.17. Revenue
was $113.6 million, above the forecast of $109.05 million. For
fiscal year 2024, Doximity expects revenues between $460 million
and $472 million, compared to an expectation of $458.7 million.
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