The S&P 500 futures are currently up four points with a 0.1% increase, the Nasdaq 100 futures have risen by 30 points at 0.1% gain, and the Dow Jones Industrial Average futures are up by 30 points, also reflecting a 0.1% rise.
Futures linked to the S&P 500, Nasdaq 100, and Dow industrials are mostly steady as investors look at recent earnings reports. Morgan Stanley (MS, Financial) and United Airlines (UAL, Financial) received positive reactions to their earnings results.
Semiconductor stocks continue to face challenges after a significant drop yesterday. ASML (ASML, Financial) is down another 4% before the market opens, following a disappointing Q3 earnings report and concerning net bookings figures. Intel (INTC, Financial) is also losing ground before the open due to China's plan to review its products sold in the country.
The weekly MBA Mortgage Applications Index saw a 17% drop, with purchase applications going down by 7% and refinance applications plummeting 26%.
United Airlines (UAL, Financial) has reported better-than-expected earnings, with revenues in line, and has announced a new share buyback program worth up to $1.5 billion. Omnicom (OMC, Financial) reported earnings in line with expectations and exceeded revenue expectations. J.B. Hunt Transport (JBHT, Financial) surpassed earnings and revenue estimates. Interactive Brokers (IBKR, Financial) missed earnings but beat revenue estimates. Morgan Stanley (MS, Financial) exceeded both earnings and revenue forecasts. U.S. Bancorp (USB, Financial) reported earnings above estimates, with revenues in line. Boeing (BA, Financial) is seeing a decline as a judge seeks more information before ruling on a plea deal.
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Today's News
Tesla (TSLA, Financial) has reportedly moved nearly all of its $760 million worth of Bitcoin to unidentified wallets, sparking speculation about a potential sale of the cryptocurrency. The electric car maker, which was previously the fourth-largest Bitcoin holder among U.S. public companies, now holds just $6.65 in Bitcoin. This follows a significant sale in 2022 when Tesla offloaded 75% of its Bitcoin holdings. The move comes amid a breakdown in the historical price correlation between Tesla shares and Bitcoin.
Novavax (NVAX, Financial) shares plummeted around 30% after the FDA placed a clinical hold on its COVID-19 and influenza combination vaccine due to a serious adverse event in a trial participant. The participant experienced motor neuropathy after receiving the vaccine in January 2023, although Novavax's earlier trials showed no similar issues. The company is collaborating with the FDA to resolve the hold and clarify the situation.
Morgan Stanley (MS, Financial) saw its stock rise 2.8% in premarket trading following a strong Q3 earnings report. The bank's EPS of $1.88 exceeded expectations, driven by robust investment banking revenue. Net revenue hit $15.4 billion, surpassing analyst estimates. The bank's Q3 net interest income also beat forecasts, contributing to a pretax profit margin of 27%.
ASML (ASML, Financial) shares dropped 4% in premarket trading after the company provided a disappointing sales forecast for 2025. This comes amid concerns over potential U.S. export caps, which have affected chip stocks. ASML's forecast of €30B to €35B in net sales reflects market uncertainties impacting the semiconductor industry.
Super Micro Computer (SMCI, Financial) remains the most shorted stock in the S&P 500, with 21.25% of its shares sold short. Despite challenges, including a delay in its annual report filing and a short position by Hindenburg Research, SMCI shares have gained 67% year-to-date. The company recently executed a 10-for-1 stock split.
Wolfspeed (WOLF, Financial) received a price target upgrade from Mizuho Securities after securing funding from the CHIPs Act and private equity firms. Despite the funding alleviating some financial concerns, issues such as declining silicon carbide pricing and increased competition remain. The price target was raised to $9.50, although the stock retains an Underperform rating.
Adobe (ADBE, Financial) is gaining attention for its advancements in generative AI technology, which analysts view positively. The software giant is expanding its AI capabilities, positioning itself to benefit from the growing interest in GenAI. Analysts suggest that Adobe's focus on AI could yield long-term rewards, with the stock considered fairly valued for investment.
Intel (INTC, Financial) faces scrutiny from China's Cybersecurity Association, which has called for a security review of Intel's products sold in China. The association alleges that Intel has harmed China's national security, potentially prompting a review by the Cyberspace Administration of China. Intel's stock was down 2% in premarket trading following the news.
British American Tobacco (BTI, Financial) plans to introduce synthetic nicotine pouches in the U.S., marking a shift from its traditional tobacco-derived products. Despite being labeled "tobacco-free," synthetic nicotine shares addictive properties with natural nicotine. The company remains on track to meet its 2024 guidance.
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