Stock market futures are showing a slight uptick this morning, with S&P 500 futures up by two points, Nasdaq 100 futures increasing by 23 points, and Dow Jones Industrial Average futures rising by 20 points. Despite hitting record highs yesterday, the markets experienced a slight decline but remain strong for the week with gains between 0.9% and 2.2%.
Interest rates are climbing again, affecting stock purchases. The yield on the 10-year note has increased by two basis points to 4.40%, while the yield on the 2-year note is up by one basis point to 4.80%. The economic calendar today features the April Leading Indicators Index at 10:00 AM ET.
In corporate news:
- Applied Materials (AMAT) reported earnings and revenue above expectations and provided guidance for the next quarter that aligns with estimates.
- DXC Technology (DXC) surpassed earnings expectations but provided weaker guidance for future earnings and revenues.
- Take-Two (TTWO) announced quarterly results that exceeded net bookings forecasts but provided a mixed outlook for future bookings.
- Doximity (DOCS) exceeded earnings and revenue forecasts, offered positive revenue guidance, and announced a $500 million share buyback.
- Robinhood Markets (HOOD, Financial) shared its April operating data, noting a decrease in assets under custody.
- Reddit (RDDT) is collaborating with OpenAI (MSFT, Financial) to integrate its content with ChatGPT and other AI products.
- Snowflake (SNOW) is in talks to acquire Reka AI for over $1 billion.
- Microsoft (MSFT) is facing regulatory scrutiny in Europe over AI risks and has avoided a merger investigation in the UK.
- Boeing (BA) shareholders are set to vote on the CEO's board membership today.
- GameStop (GME, Financial) anticipates lower revenues for the quarter and has announced a mixed securities offering.
Reviewing overnight developments:
Today's News
GameStop Corp. (GME, Financial) revealed it has entered into an agreement with Jefferies to potentially sell up to 45 million shares, aiming to use the proceeds for corporate purposes such as acquisitions and investments. This follows a recent filing for a mixed shelf offering, allowing for diverse security sales in the future. The announcement led to a significant 23.45% drop in GameStop's premarket stock price, continuing a trend from a 30% decline noted earlier. (GME)
Faraday Future Intelligent Electric (FFIE, Financial) experienced a dramatic 67% increase in its stock price during premarket trading, following a staggering 479% surge the previous day. This marks a 4000% rise over the past week, pushing the company's market cap to $70 million. The surge appears driven by a short squeeze, catalyzed by heightened retail interest and significant online search activity, despite no recent official communications from Faraday Future. (FFIE)
Robinhood Markets (HOOD, Financial) saw its shares rise by 4.9% after receiving a double upgrade from Bank of America Securities, which now rates the stock as a Buy. The upgrade was influenced by increased retail engagement, expense reductions, and an attractive valuation, setting a new price target of $24, up from $14. (HOOD)
Northrop Grumman (NOC, Financial) and Chubb (CB, Financial) announced increases in their dividend payouts, indicating a positive outlook on their financial health. Home Depot (HD, Financial) and Alibaba (BABA, Financial) also declared dividends, with upcoming ex-dividend dates for other major companies like Johnson & Johnson (JNJ, Financial) and Yum! Brands (YUM, Financial) approaching next week. (NOC, CB, HD, BABA, JNJ, YUM)
CoreWeave, supported by Nvidia (NVDA, Financial), secured a substantial $7.5 billion in debt financing from notable investors including Blackstone (BX, Financial), Carlyle Group (CG, Financial), and BlackRock (BLK, Financial). The funding will primarily be used to purchase AI chips and related equipment, capitalizing on the ongoing AI technology boom. (NVDA, BX, CG, BLK)
Oppenheimer initiated coverage on Confluent (CFLT, Financial) with an 'outperform' rating and a $37 price target, citing the company's strong position in the real-time data market and its potential for significant growth. This follows Confluent's recent earnings beat and optimistic future earnings guidance. (CFLT)
Microsoft (MSFT, Financial) announced plans to offer cloud computing services powered by Advanced Micro Devices' (AMD, Financial) AI chips, challenging Nvidia's dominance in the sector. This strategic shift aims to provide customers with powerful alternatives for running large AI models through Microsoft's Azure cloud service. (MSFT, AMD, NVDA)
XPeng (XPEV, Financial) disclosed its affiliate AeroHT's plans to deliver a flying car by 2026, with pre-orders starting this year. The vehicle combines air and ground travel capabilities, potentially serving both public services and private consumers. (XPEV)
Tesla (TSLA, Financial) is reportedly developing a data center in China to support its autonomous vehicle initiatives, discussing potential GPU acquisitions from Nvidia for this purpose. This move is aimed at complying with local data handling regulations while advancing its self-driving technology. (TSLA, NVDA)
Marinus Pharmaceuticals (MRNS, Financial) completed enrollment for its Phase 3 TrustTSC trial, evaluating ganaxolone in treating seizures associated with tuberous sclerosis complex. Results are expected by the fourth quarter of 2024, with a planned drug application submission in 2025. (MRNS)
GuruFocus Stock Analysis
- Netflix: A Resilient Giant by Yiannis Zourmpanos
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