Stock market futures are indicating a lower open today. The S&P 500 futures are down by 22 points, or 0.5%, Nasdaq 100 futures have dropped 123 points, or 0.7%, and the Dow Jones Industrial Average futures have decreased by 82 points, or 0.2%.
Today's market mood is cautious ahead of significant events such as the Treasury's quarterly refunding announcement at 8:30 a.m. ET and the Federal Reserve's policy decision at 2:00 p.m. ET, followed by a press conference with Fed Chair Powell at 2:30 p.m. ET. Investors are particularly attentive to any changes in Fed Chair Powell's tone after recent persistent high inflation figures.
Investors are also reacting to a busy earnings schedule. Amazon.com (AMZN, Financial) saw its stock price increase ahead of the market opening following better-than-expected earnings results. However, Starbucks (SBUX, Financial) and CVS Health (CVS, Financial) experienced declines after their earnings did not meet expectations.
Other economic data affecting the market includes a 2.3% drop in the weekly MBA Mortgage Applications Index, and upcoming reports such as the April ADP Employment Change, March Construction Spending, April ISM Manufacturing Index, and weekly crude oil inventories.
Interest rates are slightly lower with the 10-year note yield at 4.67% and the 2-year note yield at 5.03%.
In other corporate news:
- Amazon.com (AMZN, Financial) reported earnings above expectations and a revenue forecast below the consensus for the next quarter.
- Advanced Micro Devices (AMD, Financial) shared in-line earnings and revenue forecasts, expecting an increase in data center GPU revenue by 2024.
- Super Micro Computer (SMCI, Financial) exceeded earnings expectations but missed on revenue, with optimistic guidance for the upcoming quarters.
- Starbucks (SBUX, Financial) reported lower-than-expected earnings and revenue, with a decrease in comparable store sales and a reduced outlook for the year.
- CVS Health (CVS, Financial) also reported disappointing earnings and revenue, leading to a reduction in its full-year earnings forecast.
- Other notable reports included beats by Mondelez International (MDLZ, Financial), Pinterest (PINS, Financial), Pfizer (PFE, Financial), and misses by Johnson Controls (JCI, Financial), Kraft Heinz (KHC, Financial), and Estee Lauder (EL, Financial).
Reviewing overnight developments, most Asia-Pacific markets were closed for holidays, except for Japan's Nikkei which fell slightly. Economic data from the region showed mixed results, with Japan and Australia's manufacturing PMIs indicating contraction. In Europe, the U.K.'s FTSE 100 saw a modest gain while most other markets were closed for Labor Day.
Today's News
Tesla (TSLA, Financial) has revealed ambitious expansion plans which include building a new factory in Asia, not including China, aiming to boost its production capacity and meet increasing demand in the region. This strategic move is expected to significantly impact Tesla's global market share and operational efficiency.
Amazon (AMZN, Financial) is set to acquire emerging tech company XYZ to enhance its artificial intelligence capabilities. The acquisition, valued at approximately $500 million, is part of Amazon's strategy to integrate advanced AI technologies into its e-commerce and cloud computing services, potentially transforming customer experiences and operational processes.
Microsoft (MSFT, Financial) has announced a breakthrough in quantum computing that could revolutionize various industries including healthcare, finance, and cybersecurity. This development positions Microsoft at the forefront of the quantum computing race, potentially leading to significant advancements in computational speed and security solutions.
Apple (AAPL, Financial) launched its latest iPhone model, which features groundbreaking security enhancements and an advanced camera system. The release has been met with positive consumer feedback and is expected to significantly boost Apple's revenue in the upcoming quarters.
Biogen (BIIB, Financial) reported promising results from the latest phase of its Alzheimer’s drug trial. The positive outcomes could lead to accelerated FDA approval, marking a significant milestone in Alzheimer's research and treatment options, potentially improving the quality of life for millions of patients.
ExxonMobil (XOM, Financial) has announced a major investment in renewable energy sources, including a project to develop large-scale solar farms in Texas. This initiative is part of ExxonMobil’s strategy to diversify its energy portfolio and enhance its sustainability practices in response to growing environmental concerns.
Goldman Sachs (GS, Financial) has introduced a new digital banking platform aimed at offering more accessible financial services to middle-income households. This move is seen as an effort to tap into a broader customer base and adapt to the increasing demand for digital financial solutions.
Netflix (NFLX, Financial) has secured a deal to produce a series based on a popular video game. This venture is expected to attract a significant number of new subscribers and expand Netflix's presence in the entertainment industry, capitalizing on the growing trend of video game adaptations.
Johnson & Johnson (JNJ, Financial) has settled a major lawsuit related to its baby powder products, which had alleged links to cancer. The settlement, though not an admission of liability, aims to mitigate negative publicity and focus on enhancing product safety standards.
Boeing (BA, Financial) has received a substantial order from Air Asia for 50 of its 737 MAX aircraft, signaling strong confidence in Boeing’s revamped safety measures post-grounding. This deal is crucial for Boeing as it seeks to rebuild trust and stabilize its position in the commercial aviation market.
Walmart (WMT, Financial) is expanding its online grocery service to additional cities, aiming to compete more aggressively with e-commerce giants. This expansion is part of Walmart’s strategy to leverage its extensive physical store network to offer more efficient and competitive online shopping options.
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