U.S. index futures are mixed in Thursday’s pre-market,
reflecting a scenario influenced by both divergent quarterly
results and unfavorable economic indicators emerging from China.
Investors are eagerly focusing on the upcoming speech by Jerome
Powell, Chairman of the Federal Reserve, in search of signals that
could guide market trends.
At 06:34, Dow Jones futures (DOWI:DJI) rose by 47 points, or
0.14%. S&P 500 futures rose by 0.06%, and Nasdaq-100 futures
fell by 0.11%. The yield on 10-year Treasury bonds stood at
4.531%.
In the commodities market, West Texas Intermediate crude oil for
December rose by 0.54% to $75.74 per barrel. Brent crude oil for
January increased by 0.57%, nearing $79.99 per barrel. Iron ore
with a 62% concentration traded on the Dalian exchange rose by
1.79%, priced at $128.73 per ton.
On the economic agenda for Thursday, investors are awaiting the
weekly jobless claims data at 08:30 AM, with a forecast of 218
thousand new claims. At 09:30 AM, Atlanta Fed President Raphael
Bostic will give a speech, while Richmond Fed President Thomas
Barkin speaks at 11:00 AM. At 13:00 PM, the U.S. government will
conduct another Treasury auction, this time with a 30-year
maturity. Yesterday, the 10-year auction, with a value of $40
billion, had a stop-out yield of 4.519%.
In Asian markets, the session ended without a unanimous
direction, influenced by China’s modest 0.20% decrease in October
year-on-year inflation. Adding to the picture in China, the
financial market regulatory authority is urging brokerages to
implement restrictions on margin trading in stock operations. In
Japan, growth in line with expectations was observed in bank loans,
which saw an increase of 2.80% compared to the same period last
year.
Meanwhile, in Europe, attention is turning to the highly
anticipated intervention by Christine Lagarde, President of the
European Central Bank (ECB), scheduled for 12:30 PM.
U.S. stocks had an indecisive trading day on Wednesday, with
major indices fluctuating around stability. The Dow Jones fell
0.12%, closing at 34,112.27, while the S&P 500 rose 0.10%,
ending at 4,382.78. The Nasdaq Composite advanced 0.08%, reaching
13,650.41. Despite the volatility, both the Nasdaq and the S&P
500 extended their winning streaks, with the latter achieving its
best closing in a month. The market remained optimistic about
interest rates, and Jerome Powell’s comments did not address
monetary policy.
In the corporate earnings front for Wednesday, investors will be
watching for reports from Li Auto (NASDAQ:LI),
Novavax (NASDAQ:NVAX), Oatly
(NASDAQ:OTLY), Fiverr (NYSE:FVRR),
Yeti (NYSE:YETI), Tapestry
(NYSE:TPR) before the market opens. After the closing bell, we
expect reports from Unity (NYSE:U),
TheTradeDesk (NASDAQ:TTD), Wynn
Resorts (NASDAQ:WYNN), Navitas
(NASDAQ:NVTS), Petrobras (NYSE:PBR), and
others.
Wall Street Corporate Highlights for Today
Nvidia (NASDAQ:NVDA) – Nvidia plans to launch
three new chips for the Chinese market after the U.S. blocked the
sale of AI and gaming chips. The announcement is expected on
November 16.
Apple (NASDAQ:AAPL) – An adviser to the
European high court has stated that a lower court that supported
Apple in its challenge against a $14 billion EU tax order made
legal errors and must review the case, representing a possible
setback for the company. Additionally, Apple co-founder Steve
Wozniak has been hospitalized in Mexico City. Mexican media reports
suggest the issue could be a stroke or a less severe vertigo. Steve
Wozniak was scheduled to speak at the World Business Forum
event.
Amazon (NASDAQ:AMZN) – Amazon.com has confirmed
job cuts in its Music division, amid a series of layoffs that have
affected more than 27,000 employees in the past year. The company
has not disclosed the number of affected employees but highlighted
that it will continue to invest in Amazon Music. Additionally,
Amazon is investing millions in a large language model (LLM) called
“Olympus,” with 2 trillion parameters, aiming to compete with
models from OpenAI and Alphabet. The initiative is led by Rohit
Prasad and could strengthen Amazon’s offering in AWS.
Netflix (NASDAQ:NFLX), Warner Bros.
Discovery (NASDAQ:WBD), Paramount Global
(NASDAQ:PARA) – Shares rose as a result of a provisional agreement
between Hollywood actors and major studios and streaming companies.
Warner Bros. rebounded 2.9% after a 19% drop the previous day,
primarily due to strikes in Hollywood, which contributed to a
larger-than-expected quarterly loss. Union members are expected to
vote on ratifying the three-year agreement in the coming days.
Novo Nordisk (NYSE:NVO) – Novo Nordisk has
announced that it will discontinue the sale of its long-acting
insulin, Levemir, in the U.S. due to manufacturing restrictions and
availability of alternatives. The discontinuation will begin in
January 2024. The company also offers the long-acting insulin
Tresiba in the market.
Eli Lilly (NYSE:LLY) – The FDA has approved Eli
Lilly’s obesity treatment, Zepbound, which will compete with Novo
Nordisk’s Wegovy. Lilly has set a lower list price for Zepbound in
an attempt to expand access.
Caesars Entertainment (NASDAQ:CZR) –
Hospitality worker unions in Las Vegas have reached a “historic”
preliminary agreement with Caesars Entertainment for a new contract
covering 10,000 employees, avoiding an imminent strike. The
five-year agreement includes salary increases, health benefits, and
pensions. The city is preparing for major events, including the
Formula 1 Las Vegas Grand Prix.
Domino’s Pizza (NYSE:DPZ) – Domino’s Pizza
Group reported a decline in meal deliveries in the third quarter as
customers reduced orders due to rising living costs. The group also
faced a decrease in total orders and increased product prices in
response to higher costs.
Tesla (NASDAQ:TSLA) – Tesla will recall 159
Model S and Model X vehicles due to the possibility of the driver’s
airbag deploying incorrectly, increasing the risk of injury in the
event of an accident, according to the National Highway Traffic
Safety Administration (NHTSA) on Thursday.
General Motors (NYSE:GM),
Stellantis (NYSE:STLA) – GM and Stellantis have
invested $7 million and $5 million, respectively, in startup Niron
Magnetics, with the aim of developing magnets for electric vehicles
without relying on rare earth materials, a move to reduce
dependence on China for critical materials. The initiative aims to
create efficient permanent magnets using more abundant materials,
reducing environmental impact.
Polestar (NYSE:PSNYW) – Swedish electric
vehicle manufacturer Polestar has lowered its 2023 delivery
forecast and cut its gross margin target due to concerns about
slowing demand for electric vehicles and global economic
uncertainties. It now expects to deliver about 60,000 vehicles this
year, with a gross margin of 2% in 2023.
Deutsche Bank (NYSE:DB) – Deutsche Bank is
increasing its investments in the Asia-Pacific region to attract
European clients and take advantage of stronger economic growth
compared to other regions. CEO Christian Sewing highlighted the
growing demand for consulting services in the region and the search
for alternatives to U.S. banks. The bank is also expanding its team
in Asia.
UBS (NYSE:UBS) – UBS raised $3.5 billion in its
first Additional Tier 1 (AT1) bond sale since acquiring Credit
Suisse, with demand exceeding $26 billion, signaling recovery and
confidence following a bailout that impacted the risky bank debt
market.
Citigroup (NYSE:C) – Citigroup has agreed to
pay $25.9 million to settle charges by the U.S. Consumer Financial
Protection Bureau (CFPB) of intentional discrimination against
credit card applicants of Armenian origin based on their last names
ending in “ian” and “yan.” The penalty includes a civil fine of
$24.5 million and $1.4 million in restitution to affected
applicants.
HSBC (NYSE:HSBC) – HSBC plans to launch a
custody service for blockchain-based assets, excluding
cryptocurrencies, in partnership with Swiss company Metaco. The
service will allow institutional clients to store tokens
representing traditional financial assets. The bank previously
launched the HSBC Orion platform for tokenized digital assets.
Bank of America (NYSE:BAC) – Bank of America
CEO Brian Moynihan predicts a soft landing for the U.S. economy,
avoiding a recession, despite slowing consumer spending and
commercial lending. He stated that the U.S. economy is expected to
grow by 2.7% this year and 0.7% in 2024, with expectations of
rising interest rates by the Federal Reserve and a reduction in
inflation by the end of 2025. Moynihan also mentioned a “tremendous
pipeline of activity” in the investment banking area.
JPMorgan Chase (NYSE:JPM) – JPMorgan is
investing approximately $60 million in women-led private investment
firms in France, in partnership with Bpifrance, the French state
investment bank. The goal is to raise between €150 million and €200
million by the end of 2024.
BNY Mellon (NYSE:BK) – The proposed U.S. SEC
reform to boost central clearing in the Treasury bond market needs
to be implemented gradually to avoid disruptions in an already
volatile market environment, warns BNY Mellon. The rule aims to
require more Treasury bond trades to be cleared by a clearinghouse,
but its rapid implementation could disrupt market functioning.
Robinhood Markets (NASDAQ:HOOD) – Robinhood
plans to launch trading in the UK by the end of the year, despite
the ban on payment for order flow in the country. The practice
represented over 80% of the company’s revenue in some quarters in
the U.S., but it now seeks to profit from other sources, including
securities lending, margin lending, and premium services. The
expansion into the UK is a test of its ability to thrive without
payment for order flow.
Earnings
Disney (NYSE:DIS) – Disney’s stocks rose 4.1%
in Thursday’s pre-market after the company exceeded analysts’
expectations for profit in the fiscal fourth quarter. The company
also surpassed FactSet’s consensus forecast for total Disney+
subscribers while reaffirming the expectation that its streaming
business will be profitable in the fiscal fourth quarter of
2024.
Sony (NYSE:SONY) – Sony’s operating profit fell
29% in the September quarter due to weak performance in image
sensors and finances. Profit stood at $1.74 billion, below
estimates. The chip division saw a 37% decline. Sony maintained its
sales target for the PlayStation 5 and annual operating profit
forecast, and announced an adaptation of Marvel’s “Spider-Man 2.”
Sony’s stocks dropped 5.9% in Thursday’s pre-market.
Arm (NASDAQ:ARM) – Arm’s stocks fell 5.9% in
the pre-market after the semiconductor company’s first earnings
report as a public company. Investors paid more attention to the
weak revenue outlook, with Q2 fiscal revenue rising 28% to $806
million. Adjusted earnings of 36 cents per share exceeded
expectations of 26 cents per share. The company recorded a net loss
of $509 million for the quarter due to stock-based compensation
costs for employees.
Twilio (NYSE:TWLO) – The cloud technology
company’s stocks rose 5.8% in the pre-market after exceeding Wall
Street expectations in the third quarter and providing a strong
outlook for the current quarter. Twilio reported earnings of $0.58
per share, excluding items, with revenue of $1.03 billion,
surpassing LSEG analysts’ forecasts, which expected earnings of
$0.35 per share and revenue of $989 million.
Take-Two Interactive (NASDAQ:TTWO) – Take-Two
Interactive reported adjusted revenue of $1.44 billion in the
second quarter, in line with expectations, with a focus on details
about the next Grand Theft Auto title. Despite meeting profit
estimates, the company provided a lower-than-expected adjusted
revenue outlook of $1.3 billion to $1.35 billion for the fourth
quarter, below the average expectation of $1.43 billion. However,
it reaffirmed its full-year adjusted revenue outlook, between $5.45
billion and $5.55 billion.
Virgin Galactic (NYSE:SPCE) – Virgin Galactic’s
stocks rose approximately 10.3% in the pre-market after the space
tourism company announced quarterly results showing a reduced loss
and increased revenue. Virgin Galactic plans to raise seat prices
to around $1 million and change the Unity spaceflight schedule to
quarterly in 2024, focusing on Delta flights and Delta vehicle
development. Projected revenue for Galactic flights 6 and 7 is $2
million to $2.5 million per flight, four times higher than in the
third quarter. The company also confirmed plans to launch the Delta
Class spacecraft in 2026.
Li Auto (NASDAQ:LI) – Li Auto announced a
profit of $386 million in the third quarter, with revenue of $4.75
billion, exceeding analysts’ expectations. Its stocks rose 3.6% in
the pre-market. The company forecasts fourth-quarter revenue
between $5.27 billion and $5.4 billion, surpassing FactSet’s
estimate of $4.91 billion. Li Auto’s stocks have risen 93% this
year.
Honda Motor (NYSE:HMC) – Japan’s Honda Motor
(7267.T) reported a 31% increase in operating profit ($2 billion)
in the September quarter, driven by stronger sales in the US and a
weaker yen, raising its annual operating profit forecast by
20%.
Lyft (NASDAQ:LYFT) – Lyft’s stocks fell 1.3% in
the pre-market after third-quarter bookings fell below expectations
despite 15% growth. This overshadowed the fact that Lyft exceeded
both revenue and profit expectations in the third quarter. Revenue
grew 10% to $1.16 billion, surpassing analysts’ average estimate of
$1.14 billion. Adjusted third-quarter profit was 24 cents per
share, compared to estimates of 13 cents.
Instacart (NASDAQ:CART) – The food delivery
platform exceeded Wall Street expectations in its first earnings
report as a public company. Third-quarter revenue increased to $764
million, surpassing analysts’ consensus forecast of $737
million.
Applovin (NASDAQ:APP) – Applovin announced
strong quarterly results, with a net profit of $107.9 million,
exceeding analysts’ expectations. The company also exceeded revenue
forecasts, reaching $864 million, and its stocks rose 16.4% in the
pre-market. Applovin’s President and Chief Financial Officer,
Herald Chen, plans to transition to new career opportunities by the
end of 2023 but will continue to serve as a board member and
advisor to the CEO. Matt Stumpf will assume the role of CFO.
Affirm (NASDAQ:AFRM) – Affirm, the “buy now,
pay later” company, exceeded Wall Street expectations in the first
fiscal quarter with a 28% increase in merchandise volume to $5.6
billion and revenue of $497 million, along with a loss of $0.57 per
share. Stocks rose 14% in the pre-market.
AMC Entertainment (NYSE:AMC) – AMC
Entertainment exceeded third-quarter revenue estimates, driven by
the success of films such as “Barbie” and “Oppenheimer.” Attendance
in movie theaters increased by 38.4%, and revenue reached $1.41
billion, marking the most successful quarter in the company’s
103-year history.
MGM Resorts (NYSE:MGM) – MGM exceeded market
estimates for profit and revenue in the third quarter, with eased
entry restrictions boosting performance, especially in its MGM
China subsidiary. MGM’s global revenue increased by approximately
16% to $3.97 billion, surpassing analysts’ average estimate of
$3.87 billion, according to LSEG data. Earnings per share in the
quarter were $0.64, exceeding expectations of $0.49.
Duolingo (NASDAQ:DUOL) – The language learning
platform saw an 8.8% increase in the pre-market after surpassing
expectations for the third quarter and providing
better-than-expected guidance for the current quarter. Duolingo
told investors to expect revenue between $145 million and $148
million in the fourth quarter, while FactSet analysts predicted
$141.2 million. The company also stated that bookings for the
quarter are expected to range from $167 million to $170 million,
exceeding FactSet analysts’ forecast of $157.7 million.
AstraZeneca (NASDAQ:AZN) – AstraZeneca raised
its annual profit forecast due to demand for cancer drugs and
invested up to $2 billion in a weight loss medication.
Third-quarter revenues of $11.49 billion were slightly above the
consensus forecast of $11.47 billion, boosting its stocks by 2.7%
in the pre-market.
ArcelorMittal (NYSE:MTCN) – ArcelorMittal
reported third-quarter profits above expectations, highlighting an
improvement in structural profitability. The company forecasts
global steel demand growth, excluding China, of 1% to 2% this year
but reduced its outlook for Europe due to weak construction
activity. The world’s second-largest steelmaker reported EBITDA of
$1.87 billion, above analysts’ average forecast of $1.8
billion.
Topgolf Callaway Brands (NYSE:MODG) – The golf
equipment manufacturer and operator of the Topgolf recreational
driving range network saw stocks fall 19.7% in the pre-market due
to a challenging third quarter.
AMC Entertainment (NYSE:AMC)
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