S&P 500 futures are up 5 points and Nasdaq 100 futures are up 44 points. Dow Jones Industrial Average futures are down 54 points. The market shows a mixed reaction after Oracle (ORCL, Financial) released disappointing earnings and guidance.
Investors are cautious ahead of the November Consumer Price Index and Producer Price Index reports, and the ECB policy meeting.
The economic calendar today includes the NFIB Small Business Optimism survey, which rose to 101.7 in November from 93.7 in October. Revised Q3 Productivity and Unit Labor Costs data will also be available at 8:30 ET.
Today's News
C3.ai (AI, Financial) experienced a 5% dip in premarket trading despite surpassing fiscal second quarter estimates and raising its outlook. Analysts offered mixed reviews, with JMP Securities maintaining a Market Outperform rating and increasing the price target to $55. The company's guidance for the fiscal third quarter and year was mixed, with an expected non-GAAP operating loss range of -$38.6M to -$46.6M, and a full-year operating loss of -$105M to -$135M. C3.ai anticipates being free cash flow negative in the upcoming quarter.
Oracle (ORCL, Financial) reported slightly weaker-than-expected fiscal second-quarter results, yet Wall Street remains optimistic due to continued cloud growth. Despite a 6% drop in premarket trading, analysts highlighted the company's accelerating growth in current remaining performance obligations, supported by cloud and AI advancements. Piper Sandler raised its price target, citing improved margins and expense management.
Retail sales in November showed resilience, growing 0.15% month-over-month and 2.35% year-over-year, despite the impact of the Thanksgiving holiday falling partially in December. The National Retail Federation remains confident in its holiday forecast, noting that consumers continue to purchase more goods even with lower retail prices.
Micron Technology (MU, Financial) secured a $6.14B award from the U.S. Department of Commerce to support its fab construction in New York and Idaho. This funding is part of Micron's $125B investment plan over two decades, aimed at bolstering the U.S. semiconductor industry.
AppLovin (APP, Financial) saw a significant 14.7% decline after not being included in the S&P 500 index, despite a strong performance this year. The company's market cap exceeds $114.95B, and analysts have been optimistic about its growth potential. Coinbase (COIN, Financial) was another contender for index inclusion, with its shares nearly doubling in value this year.
Rezolve AI (RZLV, Financial) shares rose by 4% following Roth MKM's initiation of coverage with a Buy rating and a $4 price target. The company's AI solutions enhance e-commerce interactions, and recent collaborations with Microsoft (MSFT) and Google (GOOGL) have bolstered its credibility and growth trajectory.
McDonald's (MCD, Financial) locations in Altoona, Pennsylvania, faced negative online reviews after an arrest related to a high-profile shooting. The reviews were removed by Google following social media backlash against U.S. health insurers, sparked by the incident involving a UnitedHealth (UNH, Financial) executive.
Rocket Lab USA (RKLB, Financial) successfully conducted a hypersonic technology test for the Department of Defense, showcasing advanced capabilities under the Multi-Service Advanced Capability Hypersonics Test Bed project. This initiative aims to enhance hypersonic flight testing for the U.S. military.
Chimerix (CMRX, Financial) shares more than doubled as the company announced plans to submit a New Drug Application for dordaviprone, seeking accelerated approval for treating recurrent H3 K27M-mutant diffuse glioma in the U.S. The company aims for Priority Review for the application.
Applied Optoelectronics (AAOI, Financial) faced a downgrade from B. Riley due to concerns over its valuation and potential deceleration in 400G technology. The stock dropped 7.5% in premarket trading, while Lumentum (LITE) saw minor gains despite also being highlighted by the analyst.
JPMorgan Chase (JPM, Financial) declared a quarterly dividend of $1.25 per share, maintaining its payout from the previous quarter. The dividend is payable on January 31 to shareholders on record as of January 6.
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