The S&P 500 futures are up 16 points, the Nasdaq 100 futures are up 131 points, and the Dow Jones Industrial Average futures are up 173 points, indicating a positive start to the day.
Early trading shows optimism, driven by strong earnings reports from technology companies such as Salesforce (CRM, Financial), Marvell (MRVL, Financial), and Okta (OKTA, Financial).
Despite higher Treasury yields, with the 10-year yield at 4.27% and the 2-year yield at 4.20%, interest in stocks remains high.
Key economic data releases for the day include the ADP Employment Change estimate, the final S&P Global US Services PMI for November, the ISM Non-Manufacturing Index, and the EIA Crude Oil Inventories. Additionally, the Fed's Beige Book will be released in the afternoon.
Salesforce (CRM, Financial) shares rose sharply, despite missing earnings estimates slightly, as revenue was in line with expectations.
Marvell (MRVL, Financial) reported better-than-expected earnings and revenue and provided strong guidance for the upcoming quarter.
Okta (OKTA, Financial) also exceeded earnings and revenue expectations and offered an optimistic outlook.
Pure Storage (PSTG, Financial) saw significant gains after beating earnings and revenue estimates.
Eli Lilly (LLY, Financial) reported positive trial results for its drug Zepbound, outperforming a competitor's product in terms of weight loss results.
General Motors (GM, Financial) disclosed financial impairments related to its operations in China, impacting its stock negatively.
Dollar Tree (DLTR, Financial) showed solid performance with earnings and revenue beats, alongside a management transition announcement.
Campbell Soup (CPB, Financial) beat earnings estimates, maintained its guidance, announced a new CEO, and increased its dividend, although its stock dipped slightly.
Today's News
Apple (AAPL, Financial) is leveraging Amazon's (AMZN, Financial) custom AI chips from its cloud computing unit, AWS, to enhance its machine learning capabilities. Apple's senior director of machine learning and AI highlighted the long-standing partnership and the significant efficiency gains in AI workloads. The company is also considering Amazon's new AI chip, Trainium 2, for pre-training models, indicating a deepening collaboration between these tech giants.
Salesforce (CRM, Financial) and Marvell Technology (MRVL, Financial) both reported strong earnings, with Salesforce's stock surging nearly 11% despite mixed quarterly results. Marvell's shares also jumped 11% following impressive earnings and a positive outlook, driven by substantial growth in data center revenue, particularly from artificial intelligence applications.
The U.S. private sector employment data for November showed an increase of 146,000 jobs, which fell short of expectations. The report highlighted mixed industry performance, with notable job growth in education, health services, and trade, while manufacturing showed weakness.
Intuitive Machines (LUNR, Financial) has announced an upsized public offering, expecting net proceeds of around $104.25 million. The funds will be used for general corporate purposes, and the offering includes a private placement with Boryung Corporation.
Microsoft (MSFT, Financial) declared a quarterly dividend of $0.83 per share, maintaining its previous payout. The tech giant continues to see robust demand for its AI services, positioning itself as a leader in the evolving market, despite valuation concerns.
General Motors (GM, Financial) is facing challenging conditions in China, leading to expected non-cash charges exceeding $5 billion related to its joint venture with SAIC Motors. The automaker continues to navigate a difficult operating environment in the region.
Eli Lilly (LLY, Financial) announced that its weight-loss drug Zepbound outperformed Novo Nordisk’s Wegovy in a head-to-head trial, achieving a 47% greater relative weight loss. This trial marks a significant milestone in the competitive landscape of weight-loss treatments.
Saudi Aramco (ARMCO, Financial), along with SLB (SLB, Financial) and Linde (LIN, Financial), has signed an agreement to develop a major carbon capture and storage project in Jubail, Saudi Arabia. This initiative aligns with Aramco's strategy to produce blue hydrogen and ammonia using natural gas from its Jafurah development.
GuruFocus Stock Analysis
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