The S&P 500 futures are up 10 points (0.2%), the Nasdaq 100 futures are up 25 points (0.1%), and the Dow Jones Industrial Average futures are up 71 points (0.2%).
Positive sentiment continues this morning. Gains in mega caps and chipmakers are helping. Traders are also waiting for the August Producer Price Index at 8:30 ET.
The European Central Bank is expected to cut the deposit facility rate by 25 basis points at 8:15 ET.
The 10-year yield is up two basis points to 3.67% and the 2-year yield is up one basis point to 3.66%.
Here are some updates on individual stocks:
Today's News
Moderna (MRNA, Financial) shares fell roughly 10% premarket on Thursday after the vaccine maker detailed plans to cut its annual R&D expense by $1.1 billion starting in 2027. The company is undertaking portfolio prioritization and cost efficiencies to reduce R&D expense from $4.8 billion in 2024 to $3.6-3.8 billion in 2027. Moderna will expand its commercial portfolio into oncology, rare diseases, and first-in-class non-respiratory vaccines, expecting to yield 10 product approvals over the next three years.
Dow (DOW, Financial) fell 3% in premarket trading Thursday after the chemical maker provided revenue guidance lower than expected by Wall Street analysts. The company expects third-quarter revenue of about $10.6 billion, compared with the consensus estimate of $11 billion. Dow also foresees operating earnings before interest, taxes, depreciation, and amortization of approximately $1.3 billion for the third quarter, down from $1.5 billion in the prior three-month period.
Netgear (NTGR, Financial) shares surged 27% after the company updated its business outlook for 3Q24, following a $135 million litigation settlement with TP-Link Systems and the earlier-than-expected launch of its next-generation 5G mobile hotspot. The company now anticipates Q3 revenue of $170 million to $180 million, up from prior guidance of $160 million to $175 million. The settlement is expected to provide a net benefit of $103.6 million, leading to a projected GAAP operating margin of 48.0% to 51.0%, significantly higher than the prior forecast.
IBM (IBM, Financial) said on Wednesday it expects to recognize a one-time pre-tax charge of roughly $2.7 billion in the third quarter, linked to a transaction that involved the transfer of some of its pension plan obligations to a unit of Prudential Financial (PRU). The contract purchase was funded by the IBM plan’s assets and no cash contribution was required. Prudential will be solely responsible for paying the pension benefits of each transferred participant starting January 1, 2025.
CrowdStrike (CRWD, Financial) CEO George Kurtz addressed the July 19 global IT outage during the Goldman Sachs Communacopia + Technology Conference, emphasizing transparency and accountability. Kurtz highlighted that the strategy paid off based on customer response and industry feedback, including calls from notable CEOs like Andy Jassy of Amazon and Marc Benioff of Salesforce.
Philip Morris (PM, Financial) declared a $1.35/share quarterly dividend, a 3.8% increase from the prior dividend of $1.30. The forward yield stands at 4.31%, payable on October 10 for shareholders of record on September 26. This move highlights the company's strong cash flow and commitment to returning value to shareholders.
Kroger Co. (KR, Financial) moved slightly higher in premarket trading on Thursday after releasing its FQ2 earnings report. Identical-store sales excluding fuel rose 1.2% for the quarter ending August 17, slightly ahead of analysts' expectations. Adjusted FIFO operating profit was $984 million, compared to the $977 million consensus, reflecting the company's ability to improve margins while maintaining competitive pricing.
U.S. Bancorp (USB, Financial) declared a $0.50/share quarterly dividend, a 2% increase from the prior dividend of $0.49. The forward yield is 4.47%, payable on October 15 for shareholders of record on September 30. This increase comes amid a broader strategy to return value to shareholders.
Alphabet's (GOOG, Financial) unit Google is under investigation by Ireland's Data Protection Commission for compliance with the EU's General Data Protection Regulation in developing its AI model, Pathways Language Model 2 (PaLM 2). The inquiry will review whether Google adhered to GDPR obligations before processing personal data of EU users.
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