Ericsson Shares Surge 7% on Strong Earnings, Nvidia Drops 2%, Google Invests in Nuclear Power for AI

Ericsson (NASDAQ:ERIC) – Ericsson reported better-than-expected profits, driven by a rebound in 5G equipment demand in North America. Net sales fell 4% to $5.92 billion but surpassed forecasts, with U.S. sales jumping over 50%. Europe and Latin America remained stable, while other markets faced challenges. Adjusted profits were 7.33 billion crowns, exceeding estimates and last year’s 3.9 billion, buoyed by an AT&T contract. The adjusted operating margin was 11.9%, above expectations. Shares rose 6.9% pre-market after closing up 0.4% on Monday.

Alphabet (NASDAQ:GOOGL) – Google has signed a deal with Kairos Power to purchase electricity from small modular reactors (SMRs) to meet growing demand for AI-related power. The first reactor is expected to be operational by 2030, with more deployments by 2035. Google will buy 500 megawatts of power from six to seven reactors. Shares remained steady in pre-market trading after closing up 1.1% on Monday.

Microsoft (NASDAQ:MSFT) – Sebastien Bubeck, Microsoft’s vice president of AI research, is leaving to join OpenAI, maker of ChatGPT. While his new role is unspecified, Microsoft expects to continue collaborating with him.

Nvidia (NASDAQ:NVDA) – The Biden administration is considering restricting the sale of advanced AI chips from Nvidia and other American firms, with restrictions based on countries. This move aims to protect national security, particularly in Gulf nations investing in AI data centers. Discussions are in early stages. Nvidia’s director, Mark Stevens, recently sold 155,000 shares for $20.5 million, bringing his total 2024 sales to over 4 million shares, totaling $425.5 million. Other executives use automated trading plans, but Stevens has not adopted such plans for his sales. Nvidia shares closed up 2.4% on Monday, driven by strong demand for AI chips, bringing the company close to surpassing Apple as the world’s most valuable. Pre-market shares fell 1.8%.

International Business Machines (NYSE:IBM) – IBM is investigating its head of China, Chen Xudong, after an anonymous letter accused him of misconduct, including accepting gifts from partners and leaking confidential information. The company confirmed the letter’s existence and is conducting an investigation.

SoFi Technologies (NASDAQ:SOFI) – SoFi Technologies’ shares surged 11.4% on Monday, boosted by a $2 billion lending platform deal with Fortress Investment Group. The deal strengthens confidence in SoFi’s lending model, alleviating market concerns about credit underwriting. Shares have risen 34% in three months. Pre-market shares fell 0.2%.

Meta Platforms (NASDAQ:META) – Meta Platforms’ Facebook and Instagram were largely restored after an outage that affected thousands of U.S. users on Monday. At its peak, there were over 12,000 reports of issues with Facebook and 5,000 with Instagram. Shares rose 0.1% pre-market after closing up 0.1% on Monday.

Adobe (NASDAQ:ADBE) – Adobe launched new AI tools for creating and editing videos, integrating them into its Premiere software. These generative AI features allow users to extend video clips and create videos from text and images. Adobe is marketing its models as “commercially safe,” using carefully selected training data. Adobe CEO Shantanu Narayen noted that the new tool would have a different price due to the higher production cost of videos. With the rise in video creation, distinct pricing models will be implemented, as Adobe currently does not charge for AI features beyond its standard subscription. Shares rose 0.2% pre-market after closing up 2.9% on Monday.

Trump Media & Technology Group (NASDAQ:DJT) – Trump Media & Technology Group’s shares closed up 18.5% on Monday, fueled by increasing chances of Donald Trump’s victory in the upcoming November presidential election. The rise followed the announcement of a Fox News interview with Kamala Harris. Trump Media shares climbed 53% last week, recovering from previous losses. Pre-market shares rose 10.6%.

Frontier Communications (NASDAQ:FYBR), Verizon (NYSE:VZ) – Some Frontier Communications shareholders, including Glendon Capital and Cerberus Capital, are unhappy with Verizon’s $38.50 per share offer to acquire the company, considering it too low. Glendon, holding nearly 10% of Frontier, plans to vote against the $9.6 billion deal set for decision on November 13. Verizon shares rose 0.4% pre-market after closing up 0.4% on Monday.

Warner Bros. Discovery (NASDAQ:WBA) – Warner will launch its Max streaming service in new Asian markets like Hong Kong and Thailand starting November 19. While Amazon and Disney are cutting back investments in the region, Warner will bring popular franchises such as Harry Potter and the DC Universe. Max will offer subscription options for mobile and TV. Shares fell 0.3% pre-market after closing up 0.3% on Monday.

Stellantis (NYSE:STLA) – Stellantis NV is requiring employees to return to the office three days a week after a profit warning triggered management changes. The company, which previously allowed 70% remote work, is redesigning spaces to accommodate employees. Stellantis CEO Carlos Tavares attributed U.S. issues to a risky marketing strategy and promised to resolve inventory issues by the end of 2024, but faces investor pressure and stiff competition. Additionally, Chairman John Elkann said Stellantis is not pursuing mergers or acquisitions, despite rumors of a possible Renault merger. Elkann emphasized that Stellantis is focused on its business, not distractions from consolidations, as it already has competitive size. Pre-market shares fell 1.5% after closing up 1.8% on Monday.

Tesla (NASDAQ:TSLA) – The German union IG Metall accused Tesla of using “aggressive tactics” against workers trying to unionize, following the dismissal of a workers’ council representative. The union said the Gruenheide plant is threatening other members with dismissal to intimidate IG Metall workers. Additionally, Tesla used human remote control for some Optimus robot functions during the “We, Robot” event to generate investor excitement. While appearing autonomous, some participants noticed this assistance. CEO Elon Musk stated that Optimus, with domestic capabilities, could become a major product. Pre-market shares fell 1.1% after closing up 0.6% on Monday.

Southwest Airlines (NYSE:LUV) – Elliott Investment Management is calling for a special Southwest Airlines shareholder meeting to vote on new directors to guide the company’s strategy. Elliott, holding 10% of shares, wants to replace eight directors, including CEO Bob Jordan, aiming to improve Southwest’s financial performance, whose stock has dropped 42% in five years. Pre-market shares rose 0.4% after closing down 0.8% on Monday.

Azul SA (NYSE:AZUL) – Azul is seeking to raise capital after an agreement with aircraft lessors reduced its debt by R$3 billion in exchange for 100 million new preferred shares. However, the company still needs new financing to strengthen its liquidity, a crucial step to avoid future financial troubles.

Boeing (NYSE:BA) – Acting U.S. Labor Secretary Julie Su traveled to Seattle to mediate Boeing machinists’ strike, now in its fifth week. The strike prompted Boeing to announce 17,000 job cuts and $5 billion in charges, worsening the company’s crisis. The engineers’ union stated Boeing would issue 60-day layoff notices in November for employees to be terminated in January. Pre-market shares remained steady after closing down 1.3% on Monday.

Phillips 66 (NYSE:PSX) – Phillips 66 will sell its 49% stake in Coop Mineraloel AG for $1.24 billion to its Swiss partner. The transaction is part of the company’s plan to divest $3 billion in non-core assets by 2024. The sale will be completed in Q1 2025.

Petrobras (NYSE:PBR), Vale (NYSE:VALE) – Petrobras is negotiating a partnership with Vale to reduce carbon emissions by supplying marine fuel and diesel with renewable content. As two major Latin American players, they aim to decarbonize operations. Petrobras already offers fuels with up to 24% renewable content and targets net-zero emissions by 2050. Petrobras also focuses on maximizing oil extraction from existing fields to prevent production decline in the 2030s. Its next strategic plan, to be released in November, will prioritize revitalizing old fields and new platforms while seeking approval for Equatorial Margin drilling. Pre-market shares of Petrobras fell 1.2%, while Vale shares dropped 2%.

Walgreens Boots Alliance (NASDAQ:WBA) – Walgreens Boots Alliance will report earnings today, but no major changes are expected for its stock, which has fallen 66% this year. The company is expected to report fiscal Q4 earnings of 36 cents per share, down from 67 cents in the same quarter last year, on sales of $35.8 billion, up from $35.4 billion. Investors await the company’s plans to reverse its fortunes. Pre-market shares fell 0.6% after closing down 2.3% on Monday.

Vanda Pharmaceuticals (NASDAQ:VNDA) – Vanda Pharmaceuticals rejected a second acquisition offer from Cycle Pharmaceuticals, which valued the company at $8 per share. The offer represented an 80% premium after Vanda shares dropped 4.5% due to an FDA drug rejection. Pre-market shares fell 1.7% after closing up 8.3% on Monday.

Coty (NYSE:COTY) – Coty, owner of CoverGirl, reduced its Q1 sales growth forecast to 4%-5%, down from 6%, due to a slowdown in the U.S., Australia, and China. The company expects some sales acceleration in H2 and is cutting costs. Pre-market shares fell 2% after closing down 0.4% on Monday.

Citigroup (NYSE:C) – According to Reuters, Citigroup faces difficulties training staff in risk and compliance roles, delaying the resolution of regulatory issues. A lack of qualified personnel and training tools worsens the situation, even after billions spent on improvements. Recent layoffs have further complicated regulatory efforts. Pre-market shares rose 0.3% after closing up 0.4% on Monday.

HSBC Holdings (NYSE:HSBC) – HSBC is reviewing expenses and operational controls at its China-based digital wealth unit, Pinnacle, due to excessive costs. The review could lead to layoffs and includes an investigation into inflated supplier expenses. The bank seeks to control costs, as unit revenue lags behind expenses, marking a potential setback. Pre-market shares fell 1.3%.

Bank of America (NYSE:BAC) – A Bank of America survey showed investor optimism reaching its highest level since June 2020, driven by Federal Reserve rate cuts and expectations of Chinese stimulus. Stock allocations increased, while cash and bonds decreased. U.S. trade policy is expected to be the primary impact of the upcoming election. Pre-market shares rose 0.6% after closing down 0.1% on Monday.

UBS Group AG (NYSE:UBS) – Swiss regulator Finma stated UBS must review its emergency plan to ensure safe resolution during crises, considering its integration of Credit Suisse. The bank’s current restructuring strategy needs adjustments, focusing on liquidity and refinancing the Swiss entity due to increased capital requirements. Pre-market shares fell 1% after closing up 0.5% on Monday.


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