US Index Futures traded little changed in premarket trading on Friday, with the S&P 500 on course to close the week at a 16-month high.
By 7:02 AM, Dow Jones Futures ( DOWI:DJI ) was down 4 points, or 0.01%. S&P 500 futures gained 0.04%, while Nasdaq-100 futures added 0.15%. The 10-year Treasury yield was at 3.732%.
The Bank of Japan kept its ultra-loose monetary policy unchanged overnight, with the short-term interest rate at -0.10% and the benchmark of zero for the 10-year bond yield, while projecting that inflation will slow down in the end of this year. The dollar operated close to the highs of the year against the yen.
In commodities, the expectation with the announcement of more stimuli in China gives support to iron ore, which closed at a slight increase of 0.12%, at 815 yuan, or US$114.48 a ton, on the Chinese Dalian Stock Exchange, accumulating gain of 2.4% in the week. Brent crude for August was down 0.20% to $75.52 after rising about 3% the day before. West Texas Intermediate crude fell 0.20% to settle at $70.48 a barrel.
Friday’s schedule of US economic indicators is light with a focus on the University of Michigan consumer confidence data at 10:00 am.
At Thursday’s close, the Dow Jones added 428.73 points, or 1.26%, to close at 34,408.06 points. The S&P 500 rose 1.22% to close at 4,425.84 points, while the Nasdaq Composite rosegained 1.15% closing at 13,782.82 points. The stock rally was driven by the technology sector, but with other sectors starting to benefit as well. The expectation that the Federal Reserve will end its monetary tightening cycle sooner and the positive performance of stocks led the indices to reach new highs. In addition, Chinese stocks in the US also appreciated due to economic stimuli in Beijing. Commodities also followed suit. The European Central Bank (ECB) raised interest rates by 25 bps and data from the US economy continued to show signs of deceleration, but an increase in retail sales in yesterday’s data reinforced a soft landing scenario.
Wall Street Corporate Highlights for Today
Microsoft (NASDAQ:MSFT) – Microsoft reached a new record market capitalization of $2.59 trillion, driven by optimism around artificial intelligence (AI). The company is considered a leader in the adoption of AI technology due to its investment in OpenAI and the ChatGPT chatbot. Microsoft shares closed up 3.2% at $348.10. JPMorgan analysts raised the stock price target, highlighting AI’s role in driving demand for the company’s products. Elsewhere, China’s President Xi Jinping met with Bill Gates in Beijing, calling him “an old friend” and expressing a desire to carry out activities beneficial to both countries. The meeting marks Xi’s first meeting with a foreign businessman in years. Gates welcomed the opportunity to meet again and discuss important issues.
Alphabet (NASDAQ:GOOGL) – Alphabet, parent company of Google, is warning employees about the use of chatbots such as Bard as it markets the program globally. The company advised employees not to enter sensitive information into chatbots due to the risk of leakage. This precaution reflects a security standard adopted by companies, and other large corporations have implemented similar protections as well. Google’s caution is aimed at preventing harm to business and ensuring data security.
Micron (NASDAQ:MU) – US memory chip maker Micron has announced a 4.3 billion yuan ($603 million) investment in its chip packaging facility in Xian, China. The decision follows an episode in which the Chinese regulator questioned the company’s network security. The investment will strengthen production capacities and create additional jobs.
Intel (NASDAQ:INTC) – Intel on Friday announced an investment of up to $4.6 billion in a new semiconductor assembly and test facility in Poland, as part of a multibillion-dollar project to expand chip manufacturing capacity. in Europe. The facility will employ 2,000 workers and create thousands of additional jobs during construction. The company chose Poland due to its infrastructure and proximity to other planned facilities in Germany and Ireland. On Thursday, Reuters reported that Intel is close to closing a deal with the German government to receive €9.9 billion in subsidies, up from €6.8 billion previously agreed. Final negotiations will take place this weekend, with signing scheduled for Monday.
Oracle (NYSE:ORCL) – Oracle has laid off hundreds of employees and cut jobs at its healthcare facility, including electronic medical records company Cerner. The layoffs were in response to challenges faced by Cerner in its work with the US Department of Veterans Affairs. Dismissed employees will receive compensation.
Adobe Inc (NASDAQ:ADBE) – Adobe beat Wall Street expectations with its quarterly results, buoyed by generative artificial intelligence (AI) integration efforts. The AI features implemented in products such as Acrobat, Express, Photoshop and Premiere Pro have been well received. The company also forecasts significant revenue growth in 2024 driven by generative AI. Revenue of $4.82 billion beat analysts’ estimates of $4.77 billion, while adjusted earnings were $3.91 per share, above estimates of $3.79 per share. In addition, Adobe said it is awaiting final approval of the Figma acquisition.
American Express (NYSE:AXP) – American Express shares fell on Thursday after a Citi analyst said that spending on travel and entertainment was slowing, which is a negative for the credit card company. The analyst lowered the stock price target and highlighted the slowdown in that sector as a challenge for American Express, which has a high-spending customer base in that area. While travel spending drove revenue in the first quarter, the analyst believes that growth is stabilizing, which could have a negative impact on the company’s stock.
Blackrock (NYSE:BLK) – BlackRock, the world’s largest asset manager, has filed for a bitcoin ETF that would allow investors to gain exposure to the cryptocurrency. The ETF would use Coinbase Custody as the custodian. The cryptocurrency industry is facing regulatory scrutiny, and no bitcoin ETFs have been approved in the US to date. BlackRock’s entry is seen as a positive development.
Goldman Sachs (NYSE:GS) – Managing directors at Goldman Sachs have been given the message that they must take tougher steps to cut costs. The company is accelerating its efforts to reduce $1 billion in expenses, contemplating job cuts and implementing restrictions on employee expenses and travel. The layoffs will affect around 250 people, including partners and managing directors. In other news, the Federal Reserve and the US Securities and Exchange Commission are investigating Goldman Sachs’ role in two deals with Silicon Valley Bank before its collapse. They are looking into potential miscommunications and looking for documents related to the transactions.
Morgan Stanley (NYSE:MS) – Morgan Stanley withdrew its optimism on Nigerian bonds, citing their high cost following the president-elect’s reforms. The bank has now taken a neutral stance on Nigerian debt. While the market could still see some momentum, the bank predicts a less profitable period next month. Morgan Stanley favors Angola bonds at the long end of the yield curve. “ We use Angola as a credit benchmark as it has gone through similar exercises in removing subsidies and adjusting its currency ,” said strategist Neville Mandimika.
Bank of America (NYSE:BAC) – Bank of America announced that it has committed more than $500 million in equity investments to minority-led funds and women entrepreneurs, exceeding its initial commitment of $200 million. The bank has supported more than 150 funds, which have invested in more than 1,000 companies and employ more than 21,000 people in 40 US states. This initiative aims to promote racial equality and economic opportunities, benefiting diverse entrepreneurs.
Coinbase (NASDAQ:COIN), Robinhood (NASDAQ:HOOD) – Coinbase Global is facing issues similar to Robinhood earnings. While shares of Coinbase are down 5.4% over the past month due to allegations of operating as an unregistered stock exchange, shares of Robinhood are up 14% over the same period. Coinbase seeks clear legislation for the cryptocurrency industry and plans to maintain its normal operations. However, the analysis shows that Coinbase is losing market share to Robinhood, likely due to higher fees. Those losses could continue, especially amid recent regulatory headlines.
Alibaba (NYSE:BABA) – Alibaba Group is focusing its efforts in Europe, aiming to build local businesses and online platforms outside of China. The company’s president, J. Michael Evans, announced plans to launch TMall in Europe, serving local brands and customers.
Amazon (AMZN) – The proposed acquisition of iRobot Corp. for Amazon.com Inc, valued at US$1.7 billion, received clearance from the UK antitrust agency. The decision alleviates concerns about competition in the UK market, but the deal is still subject to review in the US and by the European Commission. In other news, Amazon announced on Thursday that it has reinstated a labor rights advocate who was fired earlier this month at its warehouse in Bessemer, Alabama. Jennifer Bates, the fired employee, will be reinstated with retroactive pay following a dispute over workers’ compensation. Amazon encouraged Bates to appeal and acknowledged that it could have been clearer about the documentary requirements, leading to her reinstatement decision. The union, which is trying to organize Amazon workers,
Target (NYSE:TGT) – Target on Thursday announced an increase in its quarterly dividend. The dividend of $1.10 per share begins September 10th to shareholders of record on August 16th. This marks a 1.9% increase from the current quarterly dividend of $1.08. The news was welcomed by investors after Target faced a drop in share prices last month. Target has a solid history of paying dividends and has increased the payout for 52 consecutive years. Despite recent concerns, analysts are bullish on the stock, with an average price target 30% above current levels.
Walmart (NYSE:WMT) – Walmart is expanding its product offering beyond low-cost groceries, looking to sell more expensive items like comfy chairs and designer clothing. The company aims to shed its image as a discount retailer and become a destination for shopping for fashion and home goods. With partnerships with celebrities and a renovation of its stores, Walmart seeks to attract customers concerned with style as well as price.
Tesco (USOTC:TSCDY) – Tesco, the UK’s largest retailer, announced that food inflation is starting to ease, offering some relief to consumers. CEO Ken Murphy stated that they believe they have gone through the peak of inflation. Tesco’s quarterly sales increased by 9% in the UK, driven by demand for homegrown food and offering competitive prices.
Mondelez (NASDAQ:MDLZ) – Mondelez International, the maker of Oreo, announced that it is scaling back its operations in Russia and plans to turn it into a standalone business with an independent supply chain by the end of the year. The company halted new investments and product launches in the country due to the corporate boycott and saw a drop in volumes and market share.
Anheuser-Busch InBev (NYSE:BUD) – Following controversy surrounding its collaboration with a transgender influencer, Anheuser-Busch InBev recently pledged to shift the focus to beer in its summer advertising campaign. The company recognized the negative impact of the controversy and will reinforce the message that Bud Light is an easy beer to drink and enjoy. In addition, AB Inbev will offer financial support to independent wholesalers and has committed to protecting its employees’ jobs.
Cava (NYSE:CAVA) – Shares in Mediterranean restaurant chain Cava rose 117% on their first day of trading to close at $43.78 a share. With a market cap of US$4.88 billion, Cava’s IPO was the best performing IPO this year for companies valued above US$500 million. The company plans to expand its business and open new locations with proceeds from the IPO. Cava’s successful debut could encourage other restaurant chains to consider initial public offerings.
Netflix (NASDAQ:NFLX) – The Swiss fishing village of Iseltwald has experienced a significant increase in Asian tourism after becoming a popular backdrop for the South Korean TV show “Crash Landing on You,” released internationally on Netflix in 2019. The village launched a bus service to handle the large number of visitors and implemented a fee to help cover infrastructure costs. While tourism brings benefits, residents also face challenges due to increased noise and disturbance. However, the popularity continues to grow and the village plans to continue attracting visitors even after the TV show ends.
Disney (NYSE:DIS) – Walt Disney Co Chief Financial Officer Christine McCarthy is temporarily stepping down due to a family medical leave of absence. Kevin Lansberry will take over as interim CFO beginning in July. McCarthy will continue to serve as a strategic advisor during the transition. McCarthy, a Disney veteran, has faced personal challenges throughout her career, including two bouts with breast cancer. CEO Bob Iger praised McCarthy for his strategic role during a period of transformation.
Manchester United (NYSE:MANU) – Manchester United is in exclusive talks with a consortium led by Sheikh Jassim bin Hamad al-Thani of Qatar for a sale worth more than $6 billion. The Glazer family, who own the club, would profit from the proposed deal. Qatar’s bid is preferred over a bid by Briton Jim Ratcliffe. The exclusivity period prevents negotiations with other bidders. Shares in the club soared 15% on the news, and are up 1.5% in premarket trading on Friday. A sale of that amount would be one of the biggest in the sport’s history, while some fans expressed concern over Qatar’s human rights record.
Ticketmaster (NASDAQ:TKTM) – Ticketmaster and other companies have agreed to provide full, upfront pricing to consumers as part of President Joe Biden’s efforts to combat hidden fees. Companies like Ticketmaster, SeatGeek and Airbnb have committed to fully disclosing rates to consumers prior to purchase. Biden has asked Congress to pass legislation to ensure transparent pricing across multiple industries. Live Nation (NYSE:LYV), owner of Ticketmaster, will launch an advanced full price in September. Critics argue that more action is needed to protect consumers. SeatGeek will also implement features to facilitate purchases based on full price.
Welsbach Technology Metals Acquisition (NASDAQ:WTMA) – Welsbach Technology Metals Acquisition and WaveTech Group on Friday announced the termination of merger talks due to current unfavorable market conditions. The decision was taken due to the unsuitable environment for the planned integration. The merger, which was worth an estimated $228 million, was intended to strengthen WaveTech’s crystal control technology for lead-acid batteries and expand its application in battery chemistries.
Lenzing (USOTC:LNZNY) – Lenzing has announced its intention to raise approximately €400 million ($437.9 million) in a capital increase. The Austrian textile fiber producer plans to offer around 12.1 million new shares at a price of 33.10 euros per share, compared with the previous closing price of 60.10 euros. The B&C Group, which indirectly owns 52.25% of Lenzing’s shares, subscribed to around 6.3 million new shares, equivalent to approximately 209 million euros.
Cabot Corp (NYSE:CBT) – Cabot, a maker of specialty chemicals, reported a slowdown in sales due to slower recovery in China and weak global demand. The company withdrew its fiscal 2023 outlook, but maintained its adjusted earnings expectations for the second half of the year. Cabot is focused on reducing costs and believes its investments place it in a favorable position for long-term growth. A more complete update will be provided in August.
Squarespace (NYSE:SQSP) – Squarespace announced the acquisition of millions of accounts from Google’s domain business. Squarespace will honor renewal pricing and offer incentives to existing Google Domains customers. The deal is expected to close in the third quarter.
Mersana Therapeutics (NASDAQ:MRSN) – Mersana Therapeutics fell 59% on Thursday after the biopharmaceutical company said the Food and Drug Administration issued a partial clinical suspension, pausing enrollment of new patients in its clinical trials for ovarian cancer treatment after a safety report of bleeding events.
Virgin Galactic (NYSE:SPCE) – Virgin Galactic, Richard Branson’s space tourism company, announced on Thursday that its commercial spaceflight service will launch later this month. The first flight, called “Galactic 01”, is scheduled to take place between June 27th and 30th. The company’s shares rose more than 40% in premarket trading on Friday.
Shell (NYSE:SHEL) – Legal & General Investment Management, the UK’s largest asset manager, is demanding that Shell explain how it plans to achieve net zero emissions by 2050, even as it increases investment in fossil fuels. Investors, including the Church of England, are considering an exit due to Shell’s “catastrophic” strategy. Climate activists criticize the company’s approach, warning of future downsides.
Tesla (NASDAQ:TSLA) -Italian Prime Minister Giorgia Meloni meets Tesla CEO Elon Musk in Rome. The discussions addressed the low birth rate in Italy, deregulation in the European Union and the risks of artificial intelligence. Musk will also meet French President Emmanuel Macron. In other news, SK Signet has announced the launch of electric vehicle chargers compatible with Tesla’s technology, following the moves of other automakers that have adopted Tesla’s charging standard. The company is developing ultra-fast chargers capable of simultaneous charging using the NACS and CCS standards. SK Signet plans to expand its US shipment network and has already opened a manufacturing center in Texas.
Ford (NYSE:F), General Motors (NYSE:GM) – Executives from General Motors and Ford said demand for new vehicles in the United States is exceeding expectations. They highlighted a Commerce Department report that showed an unexpected increase in retail sales, driven by consumption of motor vehicles and other goods. Both companies remain focused on cost-cutting programs and are considering partnering with Tesla to expand the electric vehicle charging network.
Toyota (NYSE:TM) – The Japanese government will provide Toyota with up to $841 million in grants for the automaker’s investment in the production of domestic batteries for electric vehicles. The objective is to strengthen the national supply chain and compete in the electric vehicle market. The government seeks to reach a domestic production capacity of 150 GWh by 2030. Other companies, such as Honda and GS Yuasa, are also investing in battery production in Japan.
Mercedes-Benz (USOTC:MBGYY) – Mercedes-Benz announced that drivers in the US will be able to use ChatGPT in their luxury vehicles as part of a testing program starting June 16th. ChatGPT will allow for more natural interactions with the automotive system, providing information about destinations and answering questions from drivers. The test will last three months and Mercedes will evaluate how drivers use the technology. Microsoft is providing a version of the chatbot through its cloud, competing with rival Amazon, which is looking to install its Alexa voice assistant in more cars. General Motors is also exploring the use of ChatGPT in its vehicles in collaboration with Microsoft. Know more…
Stellantis (NYSE:STLA) – Stellantis will launch the Citroën e-C3, its first affordable electric car made in Europe, in October. The measure is a response to competition from low-cost Chinese electric cars. France plans to subsidize EVs produced in Europe to make them more affordable. The e-C3 will be priced below 25,000 euros and the e-C3 battery will provide a range of 300 km. However, manufacturing the battery in China may affect your eligibility for the French government subsidy.
Audi (USOTC:AUDVF) – Audi CEO Markus Duesmann said the automaker needs to accelerate the development of new models to meet the growing demand for electric vehicles, especially in China. The company is reviewing its development process and looking to shorten production cycles for areas such as connectivity and software. Audi plans to launch more than 20 new models by 2025, half of them electric, and does not intend to launch new combustion models from 2026 onwards. grant programs available.
Volkswagen (USOTC:VWAGY) – Next Wednesday, Volkswagen will face questions from investors at its capital markets day about cost cuts and an independent audit at its Xinjiang plant. The automaker will seek to redefine its relationship with investors and present an updated financial strategy. Investors demand transparency about Chinese competition and the efficiency of electric vehicle production. Volkswagen is expected to follow the lead of Stellantis and Chinese EV makers.
Nikola (NASDAQ:NKLA) – Nikola founder Trevor Milton has asked investors to vote against a share increase and a change in leadership for the electric truck maker. The company postponed the vote to July 6 and said the proposal could pass without Milton’s support. Nikola’s stock has recently surged after hitting a record low.
Nissan Motor (USOTC:NSANY) – Nissan Chief Operating Officer Ashwani Gupta will leave the automaker later this month after helping with the company’s turnaround. Nissan will announce a new executive lineup on June 27. Gupta was a driving force in alliance projects, but clashed over the terms of the alliance with Renault.
Rivian (NASDAQ:RIVN) – Electric vehicle maker Rivian expects demand for its pickup trucks and SUVs to remain stable despite higher borrowing costs and recession concerns. The company is increasing production from its in-house drive unit to reduce costs and supplier dependency. The current priority is to increase production and reduce costs to improve cash flow.
NIO (NYSE:NIO) – NIO shares continued to rise in Hong Kong and are up 3.5% premarket in New York, buoyed by enthusiasm around electric vehicles and the launch of its first electric station wagon, the ET5 Touring. With prices ranging from 228,000 to 356,000 yuan, NIO shares rose by 7% to HK$76.70. The company plans to deliver the ET5 in China from June 16th and has promising prospects for the second half, with the launch of three new models and estimates of growth in EV shipments.
Baidu (NASDAQ:BIDU) – Baidu has been granted a license to offer driverless ride-hailing services in Shenzhen. Its robotaxis fleet, called Apollo Go, will be able to operate in an area of 188 km², making it the fourth city where the company offers driverless cars. Baidu plans to add another 200 fully autonomous robotaxis in service this year.
Delta Air Lines (NYSE:DAL) – Delta Air Lines announced that it will resume quarterly dividend payments, suspended during the Covid-19 pandemic. The dividend of US$0.10 per share will be paid in August. The decision reflects the company’s financial progress and its better-than-expected earnings forecast due to strong travel demand. Government restrictions on dividend payments expired last fall.