Boeing (NYSE:BA) – The FAA announced that 94% of Boeing 737 MAX 9 planes have returned to service after a suspension caused by an air emergency. The inspections included a detailed review, and investigations are ongoing. The FAA is reassessing its oversight of Boeing, considering possible changes in inspection approaches and relations with the manufacturer. Boeing’s CEO stated that 737 MAX production will continue until the FAA and Boeing are satisfied with the manufacturing process’s quality. Additionally, Boeing executives face union resentment and a strike threat over demands for a 40% wage increase.
Alphabet (NASDAQ:GOOGL) – Alphabet plans to seek external investment for its GFiber division, which provides Wi-Fi and internet connectivity in the United States, aiming to accelerate its expansion to more cities and raise external capital to become independent. GFiber, one of Alphabet’s “Other Bets,” competes with major internet service providers. Since its launch in 2012, it has expanded to 15 states and tripled its customer base in the last six years. In other news, a US federal judge has set September 9, 2024, as the start date for a jury trial in a lawsuit filed by the US Department of Justice and states against Google for alleged abuses in digital advertising. Google denies the charges, claiming negative impacts on innovation and small businesses. A similar trial will take place in Texas in March 2025, while another will be in May in Washington, DC.
Microsoft (NASDAQ:MSFT) – Microsoft is joining forces with the Semafor media platform and other news organizations to assist journalists in the responsible use of generative artificial intelligence in content production. The partnership includes the launch of a news feed called “Signals” and collaborations with other journalistic institutions to explore the use of generative AI in newsrooms.
Amazon.com (NASDAQ:AMZN) – Amazon has launched Rufus, an artificial intelligence assistant to help shoppers with their product queries. However, the company faces criticism for a history of directing customers to products that benefit Amazon the most, raising concerns about the responsible use of AI in commerce.
Nvidia (NASDAQ:NVDA) – Nvidia’s shares hit a new peak on Monday, driven by an increase in the price target from Goldman Sachs (NYSE:GS). The company has excelled in the artificial intelligence market, with its market capitalization valued at $1.63 trillion. Goldman Sachs analysts raised the price target to $800 and predicted a continued increase in earnings, highlighting robust demand for AI servers and improvements in the supply of graphics processing units (GPUs). Nvidia’s shares are up 1.5% in Tuesday’s pre-market.
Nvidia (NASDAQ:NVDA), Cisco Systems (NASDAQ:CSCO) – Nvidia and Cisco Systems are collaborating to simplify the construction of corporate AI infrastructure, expanding access to technology beyond the major data center providers. Cisco will offer Nvidia equipment for AI development, expanding business opportunities for both companies. The partnership aims to boost the deployment of AI hardware in companies beyond the main data center players.
DocuSign (NASDAQ:DOCU) – Bain Capital and Hellman & Friedman have abandoned their plans to acquire DocuSign due to disagreements over the purchase price of the online signature service provider, which has a market value of $11 billion. Negotiations may resume in the future. DocuSign’s shares plummeted on Monday in response to the news and are up 1% in Tuesday’s pre-market. A deal would have represented one of the largest leveraged acquisitions in the past two years.
Snap (NYSE:SNAP) – Snap plans to cut about 528 employees, representing 10% of its global workforce, as the company continues to struggle to boost revenue growth and compete with larger rivals like Meta Platforms (NASDAQ:META). The decision follows a trend of layoffs in the technology sector in 2023, reflecting economic uncertainties.
Super Micro Computer (NASDAQ:SMCI) – Fred Chan, a board member of Super Micro Computer, demonstrated confidence in the company by purchasing 2,000 shares, valued at $1.14 million. The purchase follows the company’s strong performance, which saw sales double in the last quarter due to growing demand for artificial intelligence. However, another board member, Daniel Fairfax, sold 300 shares.
Warner Bros Discovery (NASDAQ:WBD) – Warner Bros Discovery won the dismissal of a class action proposal led by Ohio Attorney General Dave Yost, who claimed the concealment of negative financial information before the merger with AT&T in April 2022. The court ruled that the contested statements were true and that other information did not need to be disclosed under federal securities laws.
Vinfast (NASDAQ:VFS) – The Vietnamese electric vehicle manufacturer VinFast is recalling 6,000 VF 5 cars due to an issue with the combination key. The company discovered that the front lights go out if the key is pulled hard. VinFast delivered nearly 35,000 cars in 2023, below the target of 40,000 units, but deliveries increased by 35% in the last quarter.
Tesla (NASDAQ:TSLA) – Tesla shares were under pressure in the previous trading session due to news that SAP (NYSE:SAP) no longer planned to acquire cars from the automaker and a reduction in the stock’s price target by Piper Sandler, due to lower delivery expectations in 2024. The shares fell to their lowest level since May 2023, resulting in a loss of almost $24 billion in market capitalization. Tesla had already lost $193 billion in market value after forecasting “significantly lower” delivery growth for the year. Shares are down 2.1% in Tuesday’s pre-market.
Goodyear (NASDAQ:GT) – The United States government announced that a Goodyear factory in Mexico paid $4.2 million in back wages to more than 1,300 workers as part of a labor rights mediation plan. This followed a successful challenge under the US-Mexico-Canada Agreement to combat labor rights violations. The reclassification of professional categories resulted in immediate wage increases for most workers.
RTX Corp (NYSE:RTX) – RTX has received subpoenas from the US Securities and Exchange Commission (SEC) related to 2023 disclosures about the use of powder metal in engines manufactured by its subsidiary Pratt and Whitney. The defense company is cooperating with the SEC’s investigation. Pratt and Whitney conducted an inspection campaign to check potentially defective components in its geared turbofan jet engines related to the use of powder metal.
Virgin Galactic (NYSE:SPCE) – Virgin Galactic informed the Federal Aviation Administration (FAA) about a loose alignment pin in its VMS Eve carrier jet. The company emphasized that this did not affect flight safety and that it was a safe and successful flight. There was no damage to the spacecraft. Virgin Galactic will continue to provide updates following a full review.
Rio Tinto (NYSE:RIO) – A Canadian unit of Rio Tinto faces criminal charges following a serious accident at its Arctic diamond mine in January 2023. The Diavik mine is accused of multiple violations of the Mine Health and Safety Act. A hearing is scheduled for March. Rio Tinto emphasized its commitment to employee health and safety but made no further comments due to the criminal proceedings.
Novo Nordisk (NYSE:NVO) – Novo Nordisk will begin its 2024 share buyback program on Tuesday, with a value of up to $2.88 billion, to reduce the company’s share capital and meet obligations from stock-based incentive programs. Additionally, Novo Nordisk achieved a victory by announcing the acquisition of Catalent (NYSE:CTLT), a major subcontractor for the obesity drug Wegovy, for $16.5 billion. This will allow Novo Nordisk to expand production capacity and meet the growing demand for the drug. The transaction is expected to be completed by the end of 2024 and will help increase filling capacity starting in 2026.
Novartis (NYSE:NVS), MorphoSys (NASDAQ:MOR) – Novartis has agreed to acquire MorphoSys, a developer of cancer treatments, for $2.9 billion. The deal includes the promising drug pelabresib, used in the treatment of bone marrow cancer. The transaction is subject to regulatory conditions and shareholder approval. MorphoSys will continue to operate independently until the deal’s completion, expected in the first half of 2024.
Deutsche Bank (NYSE:DB) – Deutsche Bank has revised its forecasts and no longer expects a recession in the US this year, due to more controlled inflation and improvements in the labor market. It now projects an average quarterly growth of 1.9%, compared to the previous forecast of 0.3%. The institution still expects the Fed to begin reducing interest rates in June, but with a 100 basis point cut, instead of the previously expected 175.
UBS (NYSE:UBS) – UBS plans to retain about 400 traders from Credit Suisse after the acquisition, aiming to boost financial services and derivatives. The bank anticipates growth in investment banking and expects profitability in the first quarter. About half of the cost savings will be related to staff cuts. Additionally, UBS announced the resumption of share buybacks and suspended cost reduction targets after higher expenses in the fourth quarter. Setting new goals, including wealth management assets of $5 trillion by 2028. Shares fell 3.3% in Tuesday’s pre-market trading.
Citigroup (NYSE:C) – Excessive optimism among US technology stock investors is a concern for Citigroup. With most investors expecting further gains, there is a risk of amplifying a market reversal. Although markets have performed positively in 2024, caution is increasing due to interest rate policy prospects.
Blackstone (NYSE:BX) – Blackstone is conducting a preliminary review for a possible offer for L’Occitane International SA, considering a partnership with Chairman Reinold Geiger. L’Occitane’s shares rose by up to 15%, valuing the company at about $5.4 billion. Geiger owns more than 70% of the company, but deliberations are still at an early stage.
Kroger (NYSE:KR) – Kroger announced the departure of Gary Millerchip as chief financial officer, with Todd Foley stepping in on an interim basis. The change comes as the company plans its merger with Albertsons, which faces regulatory scrutiny due to antitrust and employment concerns.
Gap (NYSE:GPS) – Gap has appointed designer Zac Posen as the company’s and Old Navy’s creative director, as part of its efforts to boost its relevance and address challenges in the apparel market. Posen will bring his technical and cultural expertise to revitalize the brand.
Earnings
Palantir Technologies (NYSE:PLTR) – Palantir Technologies exceeded Wall Street expectations, forecasting a 2024 profit above estimates and reporting its “first profitable year.” Its shares surged over 18% in Tuesday’s pre-market. The company signed 103 deals worth over $1 million each in the fourth quarter of 2023, with U.S. commercial revenue increasing 70% to $131 million. Commercial growth boosted prospects for 2024, with the company forecasting a profit between $834 million and $850 million.
BP (NYSE:BP) – BP announced a fourth-quarter profit of $3 billion, surpassing expectations and boosting shares by 6% in Tuesday’s pre-market. The annual profit for 2023 totaled $13.8 billion, half of the previous year. The company reaffirmed its commitment to renewable and low-carbon energies and plans to buy back $3.5 billion in shares in the first half of 2024.
NXP Semiconductors (NASDAQ:NXPI) – NXP Semiconductors forecasts an adjusted earnings per share for the first quarter between $2.97 and $3.38, exceeding estimates, and reported fourth-quarter revenue of $3.42 billion, above expectations. However, the revenue forecast for the first quarter is $3.13 billion, below expectations, due to anticipated weakness in the electric vehicle segments and the Chinese electronics market.
Rambus (NASDAQ:RMBS) – The chip manufacturing company reported a decrease in revenue compared to the same period last year during the fourth quarter. Last quarter’s revenue totaled $122.2 million, representing a slight decrease from $122.4 million the previous year.
Coherent (NYSE:COHR) – In the first quarter, Coherent reported earnings per share of $0.36, surpassing analyst expectations by $0.10, who anticipated $0.26 per share. The quarter’s revenue was $1.13 billion, slightly above the consensus estimate of $1.12 billion.
Simon Property (NYSE:SPG) – Simon Property Group exceeded market expectations in the fourth quarter, with its funds from operations (FFO) increasing 8.5% from the previous year to $3.69 per share. The occupancy level and basic minimum rent also increased. The company forecasts FFO per share for 2024 in the range of $11.85 to $12.10, below analyst expectations.
Symbotic (NASDAQ:SYM) – Symbotic announced that it reduced its losses in the first quarter and recorded an increase in revenue, driven by the implementation of five systems and the completion of three robotic warehouse automation systems. The company had a loss of $1.93 million, compared to $7.19 million in the same period last year, while revenue rose to $368.5 million, from $206.3 million the previous year. Symbotic expects revenue between $400 million and $420 million for the second quarter.
Aecom (NYSE:ACM) – The infrastructure consulting firm announced a first fiscal quarter adjusted profit of $1.05 per share, surpassing consensus expectations, which were 95 cents per share, according to FactSet. However, revenue fell short of analyst projections. Aecom reported revenue of $1.71 billion, excluding extraordinary items, compared to analyst estimates of $1.74 billion.
Tyson Foods (NYSE:TSN) – In the fiscal first quarter ended December 30, Tyson Foods reported an adjusted operating profit of $411 million, with adjusted chicken segment revenue reaching about $192 million. Net sales totaled $13.32 billion. However, the company faces challenges with its beef business due to high prices and a shortage of cattle supply. The company plans to continue optimizing its operations, including possible factory closures.
Estée Lauder (NYSE:EL) – Estée Lauder plans to cut 3% to 5% of its global workforce. Estée Lauder reported a 43% drop in adjusted earnings to 88 cents per share, above FactSet estimates of 54 cents. Net sales fell 7% to $4.28 billion but were above forecasts of $4.19 billion. Organic net sales in the Asia-Pacific region fell 7%. The company expects incremental operating profit between $1.1 billion and $1.4 billion in fiscal years 2025 and 2026. Estée Lauder also reduced its adjusted earnings per share forecast for 2024 to a range between $2.08 and $2.23.
Cabot (NYSE:CBT) – Cabot posted an adjusted profit of $1.56 per share and revenue of $958 million, surpassing analyst estimates of $1.50 per share and $953 million in revenue, according to FactSet.
Caterpillar (NYSE:CAT) – Caterpillar exceeded estimates with double-digit operating profit in the fourth quarter. Sales and revenues were $17.1 billion, while profit reached $2.68 billion, or $5.28 per share, surpassing consensus estimates of $4.75 per share.
Chegg (NYSE:CHGG) – After announcing lower-than-expected revenue projections for the first quarter, the company’s shares fell 9.6% in Tuesday’s pre-market. However, in the fourth quarter, the company exceeded analyst expectations by achieving an adjusted earnings per share in line with projections and revenue above expectations, according to LSEG.
Vertex Pharmaceuticals (NASDAQ:VRTX) – Vertex reported better-than-expected financial results for the fourth quarter. The company announced an adjusted profit of $4.20 per share, beating analyst estimates, which predicted earnings of $4.10 per share, according to LSEG. Moreover, revenue reached $2.52 billion, slightly above consensus forecasts of $2.51 billion.
FMC Corp (NYSE:FMC) – FMC’s shares dropped 15.4% in pre-market trading after the fertilizer company reported an adjusted profit of $1.07 per share (a 55% decrease) and revenue of $1.15 billion (a 29% drop) in the fourth quarter. For 2024, the company forecasts earnings between $3.23 and $4.41 per share and revenues between $4.5 billion and $4.7 billion, below analyst expectations, which anticipated earnings of $4.33 per share and revenues of $4.66 billion. The company cited ongoing channel reductions and challenges in Latin America due to drought.