Stock market futures are showing a mixed start today. The S&P 500 futures are slightly up by one point, while Nasdaq 100 futures are down by eight points. The Dow Jones Industrial Average futures are looking a bit more positive, up by 36 points.
Investors are holding their breath for the April Producer Price Index data, set to release at 8:30 AM ET. Meanwhile, Treasury yields are showing minimal changes with the 10-year note yield stable at 4.48% and the 2-year note yield slightly down by two basis points to 4.84%.
GameStop (GME, Financial) and AMC Entertainment (AMC, Financial) shares are continuing their upward trend in early trading, following substantial gains from the previous day.
President Biden plans to raise tariffs on various imports including steel, aluminum, semiconductors, electric vehicles, batteries, solar cells, and some medical equipment.
Key corporate updates include:
- Home Depot (HD, Financial) reported earnings slightly above expectations and confirmed its revenue and EPS forecasts for the fiscal year 2025.
- GameStop (GME, Financial) and AMC Entertainment (AMC, Financial) are seeing pre-market trading volumes soar, with AMC completing a significant equity sale.
- Alibaba (BABA, Financial) missed earnings expectations slightly but met revenue targets.
- Sea Limited (SE, Financial) missed earnings forecasts but exceeded revenue expectations.
- Walmart (WMT, Financial) is reportedly cutting several corporate positions, as per a recent Wall Street Journal article.
Overnight, Asian markets closed mixed with Japan and India showing gains, while Hong Kong and Shanghai posted slight declines. In Europe, trading is mostly flat, with Italy's index slightly higher, driven by bank stocks.
Recent economic data highlights include Japan’s stable Producer Price Index and a significant drop in March Machine Tool Orders. South Korea reported increases in both import and export price indices. India’s Wholesale Price Inflation exceeded expectations slightly. In Europe, Germany’s Consumer Price Index and ZEW Economic Sentiments came in as expected, while the UK's labor market showed mixed signals.
Today's News
GameStop (GME, Financial) and AMC (AMC, Financial) have seen dramatic increases in their stock prices, each more than doubling in the premarket trading session. This surge is part of a broader meme stock rally, which also includes Koss (KOSS, Financial), BlackBerry (BB, Financial), Clover Health (CLOV, Financial), and Beyond Meat (BYND, Financial). The rally reignited following tweets from Keith Gill, known as Roaring Kitty, who posted several fight-themed video clips, marking his first social media activity in nearly three years.
Virgin Galactic (SPCE, Financial) experienced a significant premarket jump, increasing by over 9% following a 10.58% rise the previous day. This increase is linked to the broader meme stock movement, spurred by social media activity from influential figures like Roaring Kitty. The company also reported a substantial reduction in its quarterly loss and an increase in revenue, which contributed to the stock's positive momentum.
Beyond Meat (BYND, Financial) also participated in the meme stock rally, posting a nearly 17% increase in premarket trading. This follows a significant rise the previous day, driven by high short interest in the stock. Despite reporting a quarterly loss and a drop in sales, the stock's price surged due to the broader market dynamics affecting meme stocks.
Alibaba (BABA, Financial) saw its stock decline by about 5% in premarket trading after reporting mixed financial results for the fourth quarter. While the company beat revenue expectations, its earnings per American depositary share fell short of estimates, and it reported a substantial decrease in net income year-over-year, primarily due to losses from investments in public companies.
Plug Power (PLUG, Financial) announced a substantial boost, with its stock up over 40% in premarket trading after receiving a conditional commitment for a $1.66 billion loan guarantee from the U.S. Department of Energy. This funding will support the development and construction of up to six green hydrogen production facilities across the United States, reinforcing the company's position in the green energy sector.
Tilray Brands (TLRY, Financial) disclosed a private debt-for-equity exchange transaction involving the issuance of up to 13.1 million shares in exchange for convertible debt. This move aims to strengthen the company's balance sheet by eliminating outstanding convertible notes due in 2024, which could improve its financial flexibility moving forward.
Medical Properties Trust (MPW, Financial) was downgraded by RBC to Sector Perform, maintaining a target price of $5. The downgrade reflects concerns over the speculative nature of the investment, despite potential upsides. This assessment follows recent financial challenges faced by MPW's largest tenant, Steward Health Care System, which has filed for bankruptcy.
Petrobras (PBR, Financial) reported a significant drop in its first-quarter net profit and reduced its dividend payments, which led to a 2.3% decrease in its stock price in premarket trading. The company's financial performance was impacted by lower revenues and a decline in oil, gas, and derivatives sales, despite higher average Brent prices compared to the previous year.
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