S&P 500 futures are down 25 points, Nasdaq 100 futures are down 178 points, and Dow Jones Industrial Average futures are down 130 points. This decline comes ahead of the August Employment Situation report at 8:30 ET, with early drops in major tech and semiconductor stocks following Broadcom's (AVGO, Financial) disappointing guidance.
Yields are slightly lower ahead of the data release. The 10-year note yield is down two basis points to 3.70%, and the 2-year note yield is down two basis points to 3.73%.
The market's reaction to the data will influence expectations for Fed policy. The fed funds futures market currently sees a 41% chance of a 50 basis points rate cut at the September 17-18 meeting, according to CME FedWatch.
In other stock news:
Today's News
Shares of Bank of America (BAC, Financial) were in focus, inching up marginally in pre-market trading. Warren Buffett (Trades, Portfolio)'s Berkshire Hathaway (BRK.A)(BRK.B) disclosed shedding 18.7M more shares of the lender. The conglomerate has been reducing its stake in Bank of America since mid-July, cutting it by 16% to about 864M shares from 1.03B shares as of June 30. Despite the sell-off, Berkshire's overall cash pile swelled to a record $276.94B.
Broadcom (AVGO, Financial) dropped 7% during pre-market trading following its latest earnings report, but several analysts view the dip as a buying opportunity. Despite lighter-than-expected guidance, analysts highlight Broadcom's strong positioning in AI and the VMware acquisition progressing ahead of schedule. Both Jefferies and Bank of America reiterated their Buy ratings, with price targets of $205 and $215, respectively.
UiPath (PATH, Financial) saw its stock rise about 8% premarket after fiscal second-quarter results beat estimates, and the company raised its fiscal full-year 2025 revenue outlook. However, analysts remain neutral. Morgan Stanley assumed coverage with an Equal-weight rating and a $15 price target, noting improved execution balanced by declining Net New Annual Recurring Revenue (NNARR).
J.P. Morgan upgraded NIO (NIO, Financial) to an Overweight rating from Neutral, citing higher visibility on new model initiatives and a better cash position. The firm lifted its second-half 2024 and 2025 volume estimates by 11% to 13%, expecting a financial and operational turnaround for the electric vehicle maker.
The Dutch government expanded export licensing requirements for ASML's (ASML, Financial) semiconductor equipment, aligning its policies with the U.S. ASML stated that the updated license requirements, effective Sept. 7, won't impact its financial outlook for 2024 or its longer-term scenarios.
Senator Elizabeth Warren publicly backed the Justice Department's investigation into Nvidia (NVDA, Financial) over potential antitrust violations. Warren expressed concerns about Nvidia's dominance in the AI market, urging regulators to intervene to prevent dire economic risks.
Vladimir Galkin disclosed a 10% active stake in JetBlue (JBLU, Financial), making him the airline's third-largest investor. Galkin plans to continue discussions with JetBlue's management and board regarding potential board representation, inspired by his previous investments in GameStop (GME) during the meme stock craze.
Super Micro Computer (SMCI, Financial) was downgraded by JPMorgan to Neutral from Overweight due to uncertainty surrounding its 10K delay and follow-up response. Shares have fallen 33% over the past month, driven by Hindenburg Research's short position and the company's delayed annual report.
Costco (COST, Financial) reported a 7.1% increase in sales for August, outperforming broad retail. Nonfood items led the growth, with jewelry, gift cards, and sporting goods seeing significant gains. Jefferies maintains a Buy rating with a $1,050 price target, highlighting Costco's strong merchandising efforts.
Morgan Stanley sees a path for Chewy (CHWY, Financial) to reach $750M+ in EBITDA, potentially doubling its share price. The firm highlights Chewy's strong cost discipline and forward margin trajectory, making it their favorite name in SMID ecommerce.
J.P. Morgan reevaluated the North American specialty pharma space, downgrading Organon (OGN, Financial) to Underweight while upgrading Amneal Pharmaceuticals (AMRX, Financial). Despite Organon's inexpensive valuation, JPM sees better risk-reward elsewhere in the group.
Berkshire Hathaway (BRK.A)(BRK.B) has been selling off shares of Bank of America (BAC, Financial) since mid-July, reducing its stake by 16% to about 864M shares. The conglomerate's overall cash pile swelled to a record $276.94B.
GuruFocus Stock Analysis
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