US index futures are higher in premarket trading on Thursday,
reflecting chipmaker Nvidia’s strong results (NASDAQ:NVDA)
yesterday and ahead of the Jackson Hole symposium in the US, which
starts today and could provide clues about the interest path.
By 6:46 AM, Dow Jones Futures (DOWI:DJI) fell 22 points, or
0.06%. S&P 500 futures were up 0.58% and Nasdaq-100
futures rose 1.19%. The 10-year Treasury yield was at
On Thursday’s US economic agenda, investors await, at 8:30 am,
the change in July durable goods orders and the week’s unemployment
insurance orders. However, the big highlight is the first day
of the Jackson Hole symposium, with investors following the event
while waiting, tomorrow, for the speech by Fed Chairman Jerome
Powell, with some signaling about American monetary policy.
In Europe, with a less busy schedule, the markets are taking a
breather, influenced by the recent drop in Treasury
yields. This trend stems from more subdued economic indicators
globally, suggesting that central banks could moderate monetary
In Asia, after periods of volatility, markets closed higher,
echoing Nvidia’s robust results, which positively boosted
technology stocks in far-flung regions.
In commodities markets, West Texas Intermediate crude for
October rose 0.34% to trade at $79.16 a barrel. Brent crude
for October was up 0.41% at $83.55 a barrel. Iron ore futures
traded in Dalian, China, fell 0.86%, quoted at US$ 111.36, in
movement of realization after recent strong increases.
By Wednesday’s close, global equity markets were in an uptrend,
with notable gains coming from the technology sector. That
boost was related to expectations surrounding the result of Nvidia
Corp (NASDAQ:NVDA), which reported earnings after yesterday’s
market close. At the same time, yields on US Treasury bonds
experienced a drop, due to the unfavorable data on economic
activity that were released. Both in Europe and in the US, the
PMI indices revealed a mixed performance among the different
sectors, but remained below 50 points, indicating an economic
The Dow Jones rose 184.15 points or 0.54% to 34,472.98
points. The S&P 500 jumped 48.46 points or 1.10% to
4,436.01 points. The Nasdaq Composite rose 215.16 points or
1.59% to 13,721.03 points. Highlighting the situation in the
United States, requests for mortgage loans reached the lowest level
since 1995. This data once again raised concerns in the market
regarding the possible prospects of recession in the
country. As a result, futures interest rates, especially
longer-term ones, closed sharply during the day.
Ahead of Thursday’s corporate results, traders are watching
reports from Dollar Tree (NASDAQ:DLTR), Burlington (NYSE:BURL),
Petco (NASDAQ:WOOF), NetEase (NASDAQ:NTES), Futu (NASDAQ:FUTU),
Frontline (NYSE:FRO), between others. After closing, reports
will be expected from Marvell Technology Group (NASDAQ:MRVL),
Affirm (NASDAQ:AFRM), Ulta Beauty (NASDAQ:ULTA), Intuit
(NASDAQ:INTU), Workday (NASDAQ:WDAY), Gap (NYSE:GPS), Nordstrom
(NYSE:JWN), and more.
Wall Street Corporate Highlights for Today
Super Micro Computer (NASDAQ:SMCI) –
Following Nvidia’s earnings hit, the stock was up 8.2% in premarket
Thursday. On Wednesday, Loop Capital maintained a Buy
recommendation on Super Micro Computer shares, with analyst Ananda
Baruah indicating that a better-than-expectations Nvidia report
could lift the shares.
Alphabet (NASDAQ:GOOGL) – To comply with
European Union regulations, Alphabet’s Google will increase
transparency in targeted advertising and product data. The
DSA, taking effect soon, calls for greater action against online
child abuse and misinformation, transparency in algorithms and the
removal of illegal products. The company will expand the Ads
Transparency Center and make data easier for researchers to
access. Content moderation decisions will also be more
visible, with a new Transparency Center.
Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOGL)
– The growth of non-consensual pornographic deepfakes has
skyrocketed, with videos increasing ninefold since 2019. The US
currently does not criminalize the production of these
videos. Tech giants such as Google and Amazon have come under
fire for their connections to deepfake sites. Many call for
more regulation and accountability. The technology to create
deepfakes has become more accessible and advanced, adding to the
problem. Experts and activists are calling for a more
proactive stance by the tech industry and stricter laws.
Amazon (NASDAQ:AMZN), Warner
Bros Discovery (NASDAQ:WBD) – Amazon
and Warner Bros compete to air a package of Nascar races in the
summer. The league seeks new media partners to increase
revenue. Current partners NBC and Fox are close to renewing
contracts. Nascar’s viewership grew slightly compared to
Netflix (NASDAQ:NFLX) – Subscriptions to
Netflix in the US remain high, with the recent crackdown on
password sharing reinvigorating Netflix subscriber
growth. About 23% of users who signed up in July chose
Netflix’s cheapest ad-supported plan — the highest since the plan
launched in November — up 4 percentage points from the previous
month, Antenna said.
Fox (NASDAQ:FOX) – The US Federal
Communications Commission will make public comments on the Media
and Democracy Project’s attempt to deny WTXF-TV Fox’s Philadelphia
license renewal on the grounds of spreading “false information
about voter fraud.” Fox refuted the allegations.
AMC Entertainment (NYSE:AMC) – AMC
Entertainment reported a 3% decline in pre-market deals. A
10-to-1 consolidation of shares in the cinema chain will be
implemented on Thursday.
Starbucks (NASDAQ:SBUX) – Starbucks is
expanding its fall menu with new cold drinks, reflecting the
growing demand for these options, even in colder
climates. Three of the five seasonal drinks will be ice cold
by default, with 75% of Starbucks sales now being cold drinks, a
significant increase from 50% five years ago. The move follows
customer trends and celebrates the 20th anniversary of the popular
Pumpkin Spice Latte.
Boeing (NYSE:BA) – Boeing has identified a
new quality issue on the 737 MAX related to
AeroSystems (NYSE:SPR). Incorrect holes in the
aft pressure bulkhead will delay deliveries and could impact the
annual target of 400 aircraft. The defect affects the MAX 8,
with potential impact on Next Generation 737 models.
United Airlines (NASDAQ:UAL) – United
Airlines agreed to a $30 million settlement following a landing
incident that left a man quadriplegic. Court documents show
that the settlement with Nathaniel Foster Jr.’s family grew out of
a 2019 landing incident that resulted in significant brain
Embraer (NYSE:ERJ) – An Embraer Legacy 600
jet, with Yevgeny Prigozhin on board, has crashed in
Russia. Speculation points to Russian air defenses or a bomb
as the cause.
Ford Motor (NYSE:F) – Automakers including
Ford, Toyota (NYSE:TM)
and Stellantis (NYSE:STLA) plan to
produce and sell hybrid vehicles in the US over the next five
years. These hybrids serve as an alternative to fully electric
cars, attracting consumers concerned about cost, autonomy and
charging infrastructure. Forecasts indicate that hybrids will
account for 24% of US vehicle sales by 2028. The transition to
electric vehicles remains dynamic, with hybrids bridging the gap
between internal combustion and electric.
Stellantis (NYSE:STLA) – Stellantis is
seeking to partner with Chinese EV maker Zhejiang Leapmotor to
expand into the Chinese auto market, according to
Bloomberg. Other automakers, including Volkswagen, are also
interested in Leapmotor.
General Motors (NYSE:GM) – General Motors
will cut 940 IT jobs in Arizona, shutting down operations in the
state to reduce costs. Despite that, 80 to 90 software
employees will remain as GM consolidates operations in Michigan,
Georgia and Texas.
Tesla (NASDAQ:TSLA) – Tesla has reduced
its production target at the German factory from 5,000 to 4,350
cars a week, planning future reductions, according to Business
Insider. Despite achieving previous targets, images from the
internal software show inconsistent daily productions. The
company seeks to expand the capacity of the factory.
VinFast Auto (NASDAQ:VFS) – VinFast Auto
has reported discrepancies in battery range data for its VF 8 SUV.
The company lists 260 miles, while the EPA estimates 207
miles. This difference is due to WLTP and EPA testing
standards. The VF 8 has below average range compared to other
EVs. Differences in battery capacity explain variations in
range between VinFast models. Buyers should prioritize the EPA
estimate when evaluating vehicles.
BlackRock (NYSE:BLK) – BlackRock, with
$9.4 trillion under management, reduced support for shareholder
environmental and social resolutions, supporting just 7% of 399
recent proposals, compared to 22% and 47% in years
previous. The company cited poor wording of the bids as the
Blackstone (NYSE:BX) – After delays, the
Blackstone Group will launch a private equity fund for wealthy
individuals called BXPE in January, as reported by the Financial
Times. The previous launch was delayed after limitations on
redemptions from its main real estate fund. In addition,
Blackstone’s newly established China unit has gained regulatory
approval to raise funds to be invested abroad, following the trend
of global asset managers looking to satisfy Chinese demand for
foreign assets. The QDLP program raises domestic and foreign
funds for high net worth Chinese investors, with Blackstone now
among the participating companies.
Sachs (NYSE:GS), JPMorgan
Chase (NYSE:JPM), Morgan
and UBS (NYSE:UBS) – These banks have
settled for $499 million in an antitrust lawsuit filed by investors
that accused them of conspiring to restrict competition in the
stock lending market. The settlement also covers EquiLend, a
joint venture between the defendants. Credit Suisse, now owned
by UBS, closed a related deal worth about $81 million last
year. Bank of America (BAC, BOAC34) remains a defendant,
according to court documents.
UBS Group AG (NYSE:UBS) – UBS plans
to fully integrate national bank Credit Suisse, putting an end to
speculation about the latter’s future. Official decisions are
still pending, but the announcement could come this month. The
move is likely to lead to significant job cuts in Switzerland.
Jefferies Financial Group (NYSE:JEF) –
Nilesh Jasani, Vice President of Jefferies Financial Group in Asia,
will leave the company to launch a fund focused on equities related
to artificial intelligence. With more than 25 years of
experience, Jasani will leave by the end of the month.
WeWork (NYSE:WE) – WeWork, facing
significant debt and poor financial performance, is seeking
restructuring advice. The NYSE has suspended trading in its
warrants. The company has hired Hilco Global, Alvarez &
Marsal and Kirkland & Ellis to avoid bankruptcy and restructure
debt out of court.
US Steel (NYSE:X) – Esmark pulled out of
the US Steel buyout, respecting the position of the USW union,
which supports the Cleveland-Cliffs proposal. Esmark had
offered US$7.8 billion. Now, Arcelor-Mittal is the only known
competitor to Cleveland-Cliffs.
Johnson & Johnson (NYSE:JNJ) – Johnson
& Johnson’s Janssen division will shut down much of its vaccine
research and development operations in the Netherlands, according
to De Telegraaf. The company has confirmed plans to
restructure its operations, impacting its presence in
Leiden. The exact number of jobs affected is uncertain.
Nvidia (NASDAQ:NVDA) – Nvidia beat
expectations with revenue forecast, boosted by the AI
boom. The company announced a $25 billion share buyback,
sending prices soaring. The company earned $2.70 per share in
the second quarter, compared with estimates of
$2.09. Second-quarter adjusted revenue was $13.51 billion,
above estimates of $11.22 billion. Nvidia forecasts an
astonishing $16 billion in revenue for the current quarter,
benefiting from growing demand in accelerated computing and
artificial intelligence. This amount is almost double the
previous record. The outlook suggests that Nvidia could
achieve more than half of its annual revenue in the quarter in
question. CFO Colette Kress also played down concerns about
competition in the chip market.
Splunk (NASDAQ:SPLK) – Adjusted, Splunk
earned 71 cents a share on revenue of $889 million. According
to projections from FactSet, the expectation was 46 cents per share
for Splunk. Additionally, the company updated its
AutoDesk (NASDAQ:ADSK) – After reporting
second-quarter results, software stocks are up 6.6% in premarket
Thursday. Autodesk reported adjusted earnings of $1.91 per
share on revenues of $1.35 billion, beating Refinitiv analyst
forecasts of $1.73 per share and revenues of $1.32 billion.
Guess (NYSE:GES) – Guess stock was up
approximately 15.7% in premarket Thursday after Guess reported
earnings of 72 cents a share, excluding certain items, on revenue
of $664.5 million for the previous quarter.
Bath & Body Works (NYSE:BBWI) –
Bath & Body Works has warned of a more pronounced drop in
annual sales due to delayed fragrance and personal care purchases
caused by inflation. Second-quarter sales fell 3.6% to $1.56
billion, and it earned 40 cents a share for the quarter, beating
analysts’ expectations for a profit of 33 cents a share. The
full-year adjusted earnings forecast has been revised upward.
Kohl’s Corp (NYSE:KSS) – Kohl’s Corp
beat quarterly profit expectations thanks to reduced inventories
and fewer discounts. Kohl’s earned 52 cents a share for the
second quarter ended July 29, above analysts’ estimates of 22
cents, and reiterated its 2023 forecasts. Under Tom Kingsbury’s
leadership, Kohl’s focuses on lean inventories and targeted
Abercrombie & Fitch (NYSE:ANF) –
Abercrombie & Fitch raised its full-year forecasts after
positive quarterly results, driven by new styles and post-pandemic
denim demand. Effective inventory management reduced
discounts, preparing the brand for the return to school.
Locker (NYSE:FL), Nike (NYSE:NKE)
– Foot Locker shares plunged on Wednesday on weak consumer demand
and high inflation. Higher costs and limited selection hurt
sales. Foot Locker posted adjusted EPS of 4 cents per share on
revenue of $1.86 billion, missing estimates of $1.88
billion. Competitors also saw their shares drop on the day,
with Nike shares extending their longest losing streak to ten
Analog Devices (NASDAQ:ADI) – Analog
Devices projected fourth-quarter revenue below expectations due to
oversupply issues, but is looking to resume
growth. Third-quarter revenue declined about 1% year-over-year
to $3.08 billion. EPS was $2.49 per share, compared to
expectations of $2.52.
Snowflake (NYSE:SNOW) – Cloud data
analytics company Snowflake beat revenue and profit forecasts due
to increased demand for data management and generative artificial
intelligence. Revenue rose 36% and reported second-quarter
adjusted earnings per share of 22 cents, compared with the average
analyst estimate of 10 cents. The company predicts
third-quarter product revenue in the range of $670 million to $675
million, compared with the average analyst estimate of $670.8
million, according to Refinitiv data.
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