SunPower (NASDAQ:SPWR) – SunPower filed for Chapter 11 bankruptcy in the US and sold part of its business to Complete Solaria for $45 million. Complete Solaria will acquire Blue Raven Solar, New Homes segments, and SunPower’s non-installing dealer network. The company listed its assets and liabilities between $1 billion and $10 billion and will continue selling remaining assets, planning to liquidate operations after the sale. SunPower also announced a workforce reduction of about 1,000 employees and the closure of its residential installation sites and direct sales locations. Shares fell 25.9% pre-market.
Alphabet (NASDAQ:GOOGL) – Judge Amit Mehta ruled that Google violated antitrust laws by spending billions on exclusive deals to maintain a monopoly in the search market, dominating 90% of the sector. He stated that Google acts as a monopoly, hindering true competition and limiting innovation incentives, maintaining its market dominance. The ruling could lead to Alphabet’s breakup and marks a major victory for antitrust authorities. Alphabet plans to appeal, and the legal battle may last until 2026. Shares rose 0.9% pre-market.
Apple (NASDAQ:AAPL) – Google’s recent antitrust defeat could impact Apple, which receives about $20 billion annually from the search giant. The court deemed Google’s payment to be the default search engine illegal. This threatens Apple’s revenue stream, as it shifts from traditional searches to investing in AI, like Apple Intelligence, potentially changing user-device interaction. Apple may still maintain deals with AI providers, but significant financial results will take time. Shares rose 0.5% pre-market.
Meta Platforms (NASDAQ:META) – Meta apologized for removing posts by Malaysia’s Prime Minister Anwar Ibrahim honoring a deceased Hamas leader. The posts were restored, and a live broadcast interruption was fixed. The Malaysian government criticized the removal as discriminatory and a violation of free speech. Shares rose 1.1% pre-market.
OpenAI – Elon Musk reopened a lawsuit against OpenAI and its CEO Sam Altman, alleging the company prioritizes profits over public good. Musk, who left OpenAI in 2018, argues the partnership with Microsoft for AI technology violates OpenAI’s original agreement. The lawsuit seeks to invalidate OpenAI’s license with Microsoft and questions OpenAI’s transformation into a for-profit entity.
Tesla (NASDAQ:TSLA) – The National Highway Traffic Safety Administration is investigating a fatal crash involving a Tesla Cybertruck in Texas. Tesla began delivering the Cybertruck in November 2023 and has issued four recalls for the 2024 model. X, formerly Twitter, will close its San Francisco office and relocate employees to San Jose and Palo Alto. The decision ends the company’s presence in the city since 2006, reflecting Elon Musk’s criticism of local culture and market conditions. The move follows Musk’s plan to transfer headquarters to Texas. Additionally, Secretaries of State from five US states asked Musk to correct X’s chatbot Grok after it spread false information about the November elections. Concerns about misinformation misleading voters, especially in an election year, were raised. Tesla shares rose 3% pre-market.
Toyota Motor (NYSE:TM) – Honda and Nissan are developing vehicle software, and an academic suggests Toyota join them to better compete with global rivals. Japan aims to dominate 30% of the software-defined vehicle market by 2030. Collaboration among automakers could help achieve this goal and face competitors. Toyota shares rose 2.1% pre-market.
Xpeng (NYSE:XPEV) – Xpeng Aeroht, a division of Xpeng, raised $150 million to develop a flying car in Guangzhou. The “Land Carrier” is a six-wheel ground vehicle that carries a two-seat electric aircraft, which takes off and lands vertically. Pre-sales will begin at the end of 2024. Shares rose 0.8% pre-market.
Boeing (NYSE:BA), Spirit AeroSystems (NYSE:SPR) – Executives from Boeing and Spirit AeroSystems will testify at an NTSB hearing about the mid-air explosion of an Alaska Airlines Boeing 737 MAX 9. The hearing, analyzing the plane’s manufacturing and inspection, will start today and last two days, investigating safety failures like missing fasteners. Boeing faced fines and production restrictions related to previous incidents.
Southwest Airlines (NYSE:LUV) – Elliott Investment Management revealed a 7% stake in Southwest Airlines, composed of shares and derivatives. The fund seeks to reshape the airline’s management and board, pushing for executive replacement and proposing new directors. Southwest responded with a defense plan against acquisitions.
Nvidia (NASDAQ:NVDA) – Analysts downplay the impact of potential three-month delays in Nvidia’s Blackwell chips, which could affect clients like Meta and Google. Despite this, AI chip demand remains high, and Nvidia should offset with sales of older chips, maintaining its market dominance. CEO Jensen Huang sold $322.7 million in shares in July and nearly $500 million since the AI-driven stock peak. Although sales were under a trading plan, the timing coincided with a 14% stock drop. The crisis affected markets globally, reducing fortunes, including Huang’s, who fell to 16th on the billionaire list. Shares rose 2.6% pre-market.
Intel (NASDAQ:INTC), ASML Holding NV (NASDAQ:ASML) – Intel is receiving its second “High NA” EUV tool from ASML, valued at 350 million euros. These machines are crucial for manufacturing advanced chips. Intel plans to use the technology by 2027, while other chipmakers should start using it between 2025 and 2026. Intel and ASML shares each rose 1.6% pre-market.
Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) – Morgan Stanley considers TSMC a good choice despite Monday’s record stock drop. They highlight TSMC’s quality and defensive nature in downturn cycles. The price target is 50% higher than the recent close. The stock, valued at 16 times projected 2025 earnings, rose 7.1% in Taiwan on Tuesday. The benchmark gained up to 4.1% after the biggest fall in 57 years on Monday. New York-listed shares rose 1.1% pre-market.
Broadcom (NASDAQ:AVGO), Arm Holdings (NASDAQ:ARM), Intel (NASDAQ:INTC), Nvidia (NASDAQ:NVDA), Super Micro Computer (NASDAQ:SMCI) – Some semiconductor and AI stocks that fell during Monday’s session recovered in pre-market trading. Broadcom rose 1.9%, Arm rose 2.4%, and Super Micro Computer rose 1.3%.
CrowdStrike (NASDAQ:CRWD) – CrowdStrike is being sued by airline passengers due to a global computer outage caused by a software update failure. The class action lawsuit, filed in Austin, Texas, accuses the company of negligence and seeks compensation for those affected by flight delays and cancellations. Shares rose 3.5% pre-market.
Dell Technologies (NYSE:DELL) – Dell is cutting jobs and restructuring its sales teams, including a new group focused on artificial intelligence. The company is streamlining management and prioritizing AI and high-power server investments. Despite a 34% stock rise this year, Dell faces challenges with the PC market and a major job reduction of 13,000 in 2023. Shares rose 1.2% pre-market.
Logitech International (NASDAQ:LOGI) – Logitech co-founder Daniel Borel urged shareholders to choose a new board chairman this year, replacing Wendy Becker, who will not seek re-election in 2025. Borel suggested Guy Gecht as a replacement, criticizing Becker for not addressing urgent company challenges. The next general meeting is scheduled for September 4.
Banks – In the second quarter, demand for commercial and industrial loans in the US remained stable, marking the first time in two years it did not fall. The Federal Reserve survey revealed that while credit standards remain tight, demand for consumer loans and credit cards is improving.
Charles Schwab (NYSE:SCHW) – Charles Schwab and Fidelity Investments resolved technical issues with their apps faced by users trying to trade during Monday’s sharp market drop due to recession fears. The failures, affecting account access, caused panic and criticism, leading the SEC to monitor the situation. Shares rose 1.9% pre-market.
JPMorgan Chase (NYSE:JPM) – According to JPMorgan Chase, the carry trade reversal may continue as the yen remains undervalued. Arindam Sandilya stated the reversal is between 50% and 60% complete. The carry trade, involving cheap loans in Japan to invest in higher-yield assets, was affected by yen volatility and US recession fears. In other news, investors are uncertain about who will replace Jamie Dimon as JPMorgan Chase CEO. Meanwhile, co-CEOs Jennifer Piepszak and Troy Rohrbaugh are focused on expanding the market and developing future leaders, highlighting the intense competition in the sector and record growth in investment banking revenues.
Morgan Stanley (NYSE:MS) – Morgan Stanley revealed that the SEC is investigating account balance transfers to affiliate bank deposit programs, in compliance with the Investment Advisers Act of 1940. The company also announced a conditional settlement for a 2017 dispute over OW Bunker’s IPO.
Citigroup (NYSE:C) – Citigroup hired Yeo Wenxian as head of wealth for South Asia and CEO of Citibank Singapore Ltd. She joins the bank on November 1 from DBS, where she worked for 13 years. CEO Jane Fraser seeks to expand and improve performance in wealth management. Shares rose 0.8% pre-market.
Novartis (NYSE:NVS), Viatris (NASDAQ:VTRS) – Henrietta Lacks’ family sued Novartis and Viatris, alleging the companies profited from “HeLa” cells used to develop drugs without permission or compensation. The cells, taken without her knowledge in 1951, were crucial for medical research. The family seeks compensation and an order to stop future use of these cells. Novartis shares fell 1.1% pre-market, while Viatris shares fell 1.6%.
Eli Lilly (NYSE:LLY), Novo Nordisk (NYSE:NVO) – Eli Lilly, with its drug Zepbound, is gaining market share in the US against Novo Nordisk’s Wegovy. Although Zepbound shows a slight weight loss advantage, shortages of both drugs force doctors to prescribe what’s available. Lilly has captured about 40% of the market since December, while Novo faces similar supply challenges. Eli Lilly shares rose 0.9% pre-market, while Novo shares rose 2.1%.
Archer-Daniels-Midland (NYSE:ADM), Bunge Global SA (NYSE:BG) – With increasing liquidation crop sales, companies like Archer-Daniels-Midland and Bunge should benefit from lower soybean and corn prices. Farmers are emptying silos due to low prices, helping processors better utilize capacity and improve profit margins.
Cemex (NYSE:CX) – Cemex announced the sale of its operations in the Dominican Republic to Cementos Progreso and partners for about $950 million. The transaction includes a cement plant, as well as export businesses to Haiti, and is expected to close in Q4 2024.