S&P 500 futures are up 23 points (0.4%), Nasdaq 100 futures are up 120 points (0.4%), and Dow Jones Industrial Average futures are up 115 points (0.3%).
The market has a positive trend this morning. However, this could change after today's economic reports. The Retail Sales report for August will be available at 8:30 ET, followed by the Industrial Production and Capacity Utilization report at 9:15 ET.
Treasury yields remain mostly unchanged from yesterday. The 10-year yield is down one basis point to 3.61%, and the 2-year yield remains at 3.56%.
There's some caution ahead of the FOMC policy decision tomorrow.
Today's News
Intel (INTC, Financial) was in focus as Wall Street firms weighed in on several key announcements regarding its business, including an update on its foundry plans. Shares rose 6.5% in premarket trading. KeyBanc Capital Markets analyst John Vinh noted that the announcements, which included pausing construction on plants in Germany and Poland, were primarily about cost-cutting. Intel's decision to make its foundry business a separate subsidiary was viewed positively, as it should reduce conflicts of interest between foundry and design.
Online retailers in China have reduced prices for Apple's (AAPL, Financial) new iPhone 16 series ahead of its official launch. Pinduoduo (PDD, Financial) and Alibaba's (BABA, Financial) Taobao marketplace offered discounts on various iPhone 16 models, indicating soft demand for Apple's new phones in China, the world's largest smartphone market.
Following the record-breaking success of Prime Day 2024, Amazon (AMZN, Financial) is set to kick off its annual Prime Big Deal Days event on October 8-9. The event will feature savings of up to 40% on seasonal essentials, including winter fashion, electronics, and Halloween costumes. Prime members will also enjoy benefits like free access to Amazon Music Unlimited and Grubhub+.
Retail sales nudged up 0.1% in August from a month earlier, defying expectations for a 0.3% dip. Core retail sales, excluding motor vehicles and parts, also crept up 0.1% month-over-month. Nonstore retailers like Amazon (AMZN, Financial), Wayfair (W, Financial), and Etsy (ETSY, Financial) saw sales increase 7.8% year-over-year, while food services and drinking places saw a 2.7% increase from August 2023.
Apple (AAPL, Financial) shares fell amid concerns that the iPhone 16 has seen softer-than-expected pre-orders, particularly for the iPhone 16 Pro. Analysts noted that while the stock might experience near-term volatility, the long-term outlook remains strong due to the stickiness of Apple's business model.
Dell Technologies (DELL, Financial) and Super Micro Computer (SMCI, Financial) were highlighted as Mizuho Securities initiated coverage on both companies. Dell rose 2.9% in premarket trading, while Super Micro was up 1.1%. The AI server market is growing, but increased competition is impacting margins. Dell's diversified portfolio is seen as beneficial in the long term.
JD.com (JD, Financial) confirmed that it acquired Walmart's (WMT) entire stake in Dada Nexus Limited (DADA). JD.com now holds 63.2% of Dada's shares. This move is seen as a vote of confidence in Dada's long-term growth within JD.com's ecosystem. Walmart stated that the decision allows it to focus on its strong China operations and other priorities.
Microsoft (MSFT, Financial) announced an 11% hike in its quarterly dividend and a $60 billion boost to its share buyback program. Shares rose 1.9% in premarket trading. Morgan Stanley noted that these moves indicate Microsoft's "attractive" total return profile, supported by mid-teens EPS growth and a durable strong mid-teens+ total return profile.
Palantir Technologies (PLTR, Financial) was added to Bank of America's US 1 list, along with Sempra (SRE). Palantir shares rose 1.5% in premarket trading. Conversely, S&P Global (SPGI) was removed from the list after being placed on extended review. Analysts see Palantir's AI technology as a key driver for future growth.
Hewlett Packard Enterprise (HPE) saw its stock rise about 3% premarket after BofA upgraded the shares to Buy from Neutral, citing cost cuts and synergies from its acquisition of Juniper Networks (JNPR). The firm raised its estimates and price target, highlighting opportunities for significant cost cuts and AI benefits.
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