U.S. index futures are up in Thursday’s pre-market, reflecting
investor expectations regarding the announcement of October’s
personal consumption expenditures and the forecasted data for the
weekly unemployment insurance claims.
As of 6:09 AM, the Dow Jones futures (DOWI:DJI) rose by 168
points, or 0.47%. The S&P 500 futures advanced 0.19%, and the
Nasdaq-100 futures increased by 0.23%. The yield rate of the
10-year Treasury bonds was at 4.299%.
In the commodities market, West Texas Intermediate crude oil for
January rose 1.88%, to $79.32 per barrel. Brent crude for January
increased by 1.79%, close to $84.59 per barrel. Iron ore with a 62%
concentration, traded on the Dalian exchange, rose 0.9%, to $129.65
per ton.
On this Thursday’s economic agenda, investors are following the
08:30 AM release of consumer spending prices, which are expected to
rise by 0.2% in October, a slowdown compared to September,
supporting the theory that prices are decreasing. At the same time,
personal spending and income, which are both expected to increase
by 0.2%, and the weekly unemployment insurance claim, projected at
220,000 new claims, will also be announced.
At 09:05 AM, a speech by the President of the New York Fed, John
Williams, is scheduled. A bit later, at 09:45 AM, the Chicago PMI
index will be released, estimated at 45.4 points for November. At
10 AM, October’s pending home sales data will be announced.
European markets are performing positively, with regional
investors attentive to the preliminary inflation data from the
Eurozone for November. Recent economic indicators have shown a
slowdown in France’s inflation, which registered 3.4% year-on-year
in November, a decrease from the 4% observed in October.
Additionally, the most recent data on France’s Gross Domestic
Product (GDP) for the third quarter, released on Thursday, showed a
slight contraction of 0.1%. Later, starting at 08:30 AM, speeches
from some European Central Bank (ECB) members are scheduled,
including the institution’s President, Christine Lagarde, and the
Chairman of the Supervisory Board, Andrea Enria.
Asian stock markets generally performed well on Thursday. In
China, the Shanghai Stock Exchange recorded a slight increase,
while Shenzhen experienced a small decrease, influenced by the
country’s Purchasing Managers’ Index (PMI) assessments. China’s
manufacturing PMI decreased from 59.5 in October to 49.4 in
November, and the services PMI fell from 50.6 to 50.2, below
expectations. In Tokyo, the market reacted positively, with the
Nikkei index closing up 0.50%, influenced by the expectation of
important U.S. economic data. Notably, shares of Advantest, NEC,
and Makita saw significant gains.
U.S. stocks experienced an uncertain trading day on Wednesday.
The Dow Jones increased by 0.04%, the S&P 500 decreased by
0.09%, and the Nasdaq fell by 0.16%. The market’s reaction was due
to mixed statements from Federal Reserve officials regarding
interest rates. The initial optimism was spurred by the rise in
shares of General Motors (NYSE:GM), following its
announcement of share repurchases and dividend hikes. The computer
hardware and banking sectors showed strong performance.
For Thursday’s corporate earnings front, investors are set to
focus on the reports from Kroger (NYSE:KR),
Big Lots (NYSE:BIG), Frontline
(NYSE:FRO), TD Bank (NYSE:TD), and others before
market opening. Post-market close, attention will turn to the
reports from Dell (NYSE:DELL), Marvell
Technologies (NASDAQ:MRVL), Ulta Beauty
(NASDAQ:ULTA), UiPath (NYSE:PATH),
Ambarella (NASDAQ:AMBA),
PagerDuty (NYSE:PD), and more.
Today’s Wall Street corporate highlights
Meta Platforms (NASDAQ:META) – The BEUC and its
18 members have reported to consumer protection that Meta
Platforms’ new ad-free subscription service in Europe breaches EU
laws, alleging unfair practices and high fees, and arguing that
data can be collected even with payment, launched to comply with EU
privacy rules. Additionally, the CEOs of social media companies
Meta, X, TikTok,
Snap (NYSE:SNAP), and Discord
will testify about online child sexual exploitation at a U.S.
Senate hearing on January 31, after initially
Discord and X refused to
participate. The hearing will provide an opportunity to pressure
companies on protecting children online.
Microsoft (NASDAQ:MSFT) – Microsoft will take a
non-voting observer position on the OpenAI board, as announced by
CEO Sam Altman. This allows participation in meetings and access to
confidential information, but no influence on elections or director
choices.
Amazon (NASDAQ:AMZN), iRobot
(NASDAQ:IRBT) – Initially, European Commission lawyers opposed
sending a notice to Amazon about its $1.4 billion acquisition of
iRobot. Later, they supported the antitrust authorities’ decision
to send a statement of objections about the deal, limiting it to
concerns over competition in robotic vacuum cleaners. Amazon can
still obtain approval, but authorities are seeking solutions to
their concerns.
Salesforce (NYSE:CRM) – Salesforce shares rose
9.3% in Thursday’s pre-market. In the third quarter, Salesforce
recorded revenue of $8.72 billion, surpassing expectations. Its
adjusted earnings per share were $2.11, exceeding estimates by 5
cents. The company now forecasts adjusted earnings for the year
between $8.18 and $8.19 per share, compared to the previously
predicted $8.04 to $8.06. For the fourth quarter, it expects
adjusted earnings in the range of $2.25 to $2.26 per share and
predicted revenues between $9.18 billion and $9.23 billion. It also
raised the lower end of its annual revenue forecast to $34.75
billion. The company recently launched its AI tool, Einstein
Copilot.
Broadcom (NASDAQ:AVGO), VMware
(NYSE:VMW) – U.S. chip manufacturer Broadcom is exploring strategic
options for two VMware business units, following its $69 billion
acquisition. The units in question are End-User Computing and
Carbon Black. VMware will continue operating as four units under
the leadership of Raghu Raghuram.
ASML (NASDAQ:ASML) – ASML CEO Peter Wennink
plans to retire in April, to be replaced by Christophe Fouquet, a
company veteran. Wennink led ASML through a period of significant
growth, making it Europe’s largest technology company. Fouquet
oversaw the EUV technology, crucial for advanced chip
manufacturing.
Adobe (NASDAQ:ADBE) – Adobe plans to oppose the
EU’s unfair competition charges regarding its proposed acquisition
of Figma at a closed hearing in December. The European Commission
alleged that the deal could reduce competition in the interactive
design software market.
Snowflake (NYSE:SNOW) – Snowflake shares
increased 8.6% in Thursday’s pre-market after reporting upbeat
results. The company posted a net loss of $214 million in the
fiscal third quarter but surpassed analysts’ expectations with an
adjusted earnings per share of 25 cents and revenue of $734
million. The company also forecast higher than expected product
revenues for the fiscal fourth quarter, reflecting strong execution
in a stabilized macro environment.
Synopsys (NASDAQ:SNPS) – In the fiscal third
quarter, Synopsys recorded revenue of $1.599 billion, a 25%
increase from the previous year. Total annual revenue amounted to
$5.843 billion, a 15% rise. For the next quarter, the company
projects revenues of $1.63 billion to $1.66 billion and adjusted
earnings of $3.40 to $3.45 per share. For the fiscal year 2024,
Synopsys estimates revenues between $6.57 billion and $6.63
billion, with non-GAAP earnings between $13.33 and $13.41 per
share. The company’s shares have risen 73% this year.
Nutanix (NASDAQ:NTNX) – Nutanix Inc.’s shares
rose over 9.7% in Thursday’s pre-market, beating analysts’
estimates with impressive quarterly results. The company reported a
net loss of $15.8 million in the fiscal first quarter, with
adjusted earnings of 29 cents per share and revenue of $511
million, surpassing expectations. CEO Rajiv Ramaswami emphasized
the importance of AI for enterprise customers undergoing digital
transformation. Nutanix’s shares have increased 59.5% this
year.
Pure Storage (NYSE:PSTG) – Pure Storage shares
fell 16% in Thursday’s pre-market due to a disappointing projection
for the fiscal fourth quarter. The October quarter’s revenue was
$762.8 million, with non-GAAP operating income of $169.1 million.
The company anticipates January revenue of $782 million, below
expectations. The shift towards more subscription revenue impacted
guidance.
JPMorgan Chase (NYSE:JPM) – JPMorgan acquired
10.6% of Spanish defense system manufacturer Indra, becoming its
second-largest shareholder, after the Spanish state-owned SEPI.
JPMorgan’s investment in Indra is valued at approximately $294.10
million, reflecting increased strategic interest due to rising
defense spending following Russia’s invasion of Ukraine.
Morgan Stanley (NYSE:MS), JPMorgan
Chase (NYSE:JPM), Rothschild (LSE:RCHA) –
Rothschild, Morgan Stanley, and JPMorgan are expanding operations
in Abu Dhabi, the United Arab Emirates’ capital, due to growing
interest from global banks in the region, attracting sovereign
funds and financial companies. The ADGM financial district has
significantly grown, becoming one of the world’s largest.
UBS (NYSE:UBS) – The UBS 2023 Billionaires
Ambitions report reveals that the number of billionaires increased
by 7% to 2,544 worldwide, with their fortunes rising by 9% to about
12 trillion dollars. For the first time, billionaires accumulated
more wealth through inheritances than through business activities,
with 137 new billionaires inheriting $150.8 billion last year,
surpassing the 84 self-made with a total of $140.7 billion. The
generational wealth transfer is gaining momentum as more money
passes from one generation to another.
Robinhood (NASDAQ:HOOD) – Robinhood plans to
launch brokerage services in the United Kingdom as part of its
international expansion to democratize access to financial markets.
British customers will have access to commission-free trades in
U.S. stocks and ADRs, with no exchange fees or account minimums.
This comes after a decline in trading activity in the U.S.
Walt Disney (NYSE:DIS) – Walt Disney CEO Bob
Iger confirmed that he will definitively resign when his current
contract ends in 2026. He also stated that the ABC broadcast
network is not for sale and expressed optimism about Shanghai
Disneyland.
Costco (NASDAQ:COST) – Costco had a strong
November, with sales of $20.1 billion, a 5.1% increase from the
previous year. Same-store sales grew by 3.5%, driven by increased
foot traffic and online sales, which rose by 9.9%. Lower gasoline
prices reduced total same-store sales by 1.1 percentage points.
Walmart (NYSE:WMT) – Walmart is reducing its
reliance on China and importing more products from India to the
U.S., due to rising costs and political tensions. India attracts
companies with its growing workforce and technological advancement.
Walmart has been accelerating its growth in India since 2018 and
plans to import $10 billion in Indian goods by 2027. India is also
becoming an attractive destination for foreign investments, with
Amazon (NASDAQ:AMZN) seeking to export $20 billion
in goods from India by 2025.
Alibaba (NYSE:BABA), PDD
Holdings (NASDAQ:PDD) – Alibaba is on track to lose its
position as China’s most valuable e-commerce company to PDD. The
shift reflects turbulence in Alibaba following Chinese government
regulatory actions and signals the rise of startups like PDD.
Farfetch (NYSE:FTCH) – Richemont, the owner of
Cartier, declared that it will not invest in
Farfetch, an online luxury retailer considering leaving the stock
market. José Neves, founder of Farfetch, is exploring this move
following a problematic listing. Richemont is revising its deal
with Farfetch, underscoring the lack of financial obligations.
Nike (NYSE:NKE), Adidas
(USOTC:ADDYY) – Emerging footwear brands such as On Holding and
Hoka are gaining ground, challenging Nike and Adidas with
innovations in running shoes. These brands have captured consumers
and are increasing their market share while the giants face
challenges.
Foot Locker (NYSE:FL) – Foot Locker plans to
enter the Indian market in 2024 in partnership with Metro Brands
and Nykaa Fashion. Metro Brands will be responsible for Foot
Locker’s physical stores, while Nykaa Fashion will operate Foot
Locker’s website in India. The expansion aims to capitalize on the
growing sneaker market in the country.
Birkenstock (NYSE:BIRK) – Birkenstock’s shares
extended their gains following a dynamic Christmas shopping season
in the U.S. After a lukewarm market debut, the shares rose more
than 9% on Tuesday and continued climbing on Wednesday, reaching
the initial public offering price for the first time.
Vista Outdoor (NYSE:VSTO) – Vista Outdoor’s
board rejected the merger offer from Colt CZ Group, choosing to
maintain its recommendation to sell its sports products division to
the Czechoslovak Group. Colt CZ’s offer was not considered
financially more favorable and undervalued the company. Vista’s
shares rose after Colt CZ’s offer but have fallen since the deal
with CSG.
Phillips 66 (NYSE:PSX) – Elliott Investment
Management acquired a $1 billion stake in Phillips 66 and called
for a renewal of the energy company’s board, seeking to improve its
performance. Phillips 66 is facing challenges in the refining
sector, with Elliott believing improvements could raise its shares
to $200. The refinery plans to continue constructive dialogue with
Elliott Investment.
BP (NYSE:BP) – BP will acquire the remaining
50% of the solar energy joint venture, Lightsource BP, for $322.4
million, boosting its renewable energy efforts. The company plans
to expand Lightsource BP and attract a strategic partner in the
future to unlock more value.
Occidental Petroleum (NYSE:OXY) – Occidental
Petroleum is in talks to acquire Texas energy producer CrownRock in
a deal valued at over $10 billion. The deal could be finalized
soon, making CrownRock one of the last large private firms in the
Permian region.
General Motors (NYSE:GM) – General Motors
announced that its new labor agreements following a strike will
cost $9.3 billion, while it plans share buybacks, dividend
increases, and reduced spending on its autonomous vehicle unit
Cruise. The buyback is equivalent to nearly a quarter of GM’s
common shares. GM’s shares fell before closing up over 9% on
Wednesday after the announcement, still below pre-UAW strike prices
in September. The company lowered its profit expectations for 2023
but plans to resume returning capital to shareholders.
Tesla (NASDAQ:TSLA) – Tesla will hold a
Cybertruck delivery event today in Austin, Texas, live-streamed on
its website. The company will deliver the initial batch of
Cybertrucks, raising questions about its sales potential and impact
on other Tesla model sales.
Tesla (NASDAQ:TSLA), Toyota
(NYSE:TM), Volkswagen (USOTC:VWAGY),
Hyundai (KOSPI:005380), Rivian
(NASDAQ:RIVN), Nissan (TG:NISA),
BMW (TG:BMW), Mercedes-Benz
(TG:MBG) – The United Auto Workers (UAW) launched an initiative to
unionize the U.S. automotive sector, targeting 13 non-union
automakers, including Tesla, Toyota, Volkswagen, Hyundai, Rivian,
Nissan, BMW, and Mercedes-Benz. The move aims to secure benefits
and better conditions for workers, facing antitrust challenges and
resistance from the companies.
Boeing (NYSE:BA) – Canada is set to announce a
multi-billion dollar contract involving Boeing, ending months of
speculation. The purchase of 16 Poseidon P-8A aircraft aims to
replace the Aurora CP-140 fleet, with the deal covering training
and associated equipment.
Cigna (NYSE:CI), Humana
(NYSE:HUM) – Cigna is in talks for a merger with Humana,
potentially valued at over $60 billion. This follows regulators
blocking similar deals in the U.S. health insurance sector six
years ago. The merger could increase competition with leaders like
UnitedHealth Group (NYSE:UNH), but faces antitrust
challenges and concerns over limited synergies. Cigna is
considering selling its Medicare Advantage operations to facilitate
the deal.
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