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 4.206%.
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 tightening.
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 contraction.
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 2018.
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 supplier Spirit 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 damage.
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 reason.
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.
Goldman Sachs (NYSE:GS), JPMorgan Chase (NYSE:JPM), Morgan Stanley (NYSE:MS) 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.
Earnings
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 estimates.
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 discounts.
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.
Foot 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 consecutive days.
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.