S&P 500 futures are down 5 points, Nasdaq 100 futures have fallen 20 points, and Dow Jones Industrial Average futures dropped 33 points. This decline is due to increasing rates and losses in some large-cap stocks. The 10-year yield is now at 4.72%, which is up four basis points from yesterday and 12 basis points higher for the week.
Today's economic data includes a drop of 3.7% in the weekly MBA Mortgage Applications Index.
- 8:15 AM ET: December ADP Employment Change (expected 131,000; last 146,000)
- 8:30 AM ET: Weekly Initial Claims (expected 218,000; last 211,000) and Continuing Claims (last 1.844 million)
- 10:00 AM ET: November Wholesale Inventories (expected -0.2%; last 0.2%)
- 10:30 AM ET: Weekly crude oil inventories (last -1.18 million)
- 12:00 PM ET: Weekly natural gas inventories (last -116 billion cubic feet)
- 3:00 PM ET: November Consumer Credit (expected $9.1 billion; last $19.2 billion)
Cal-Maine Foods (CALM, Financial) shares increased by 6.1% after outperforming earnings and revenue estimates.
Kura Sushi (KRUS, Financial) went up 2.0% with better-than-expected earnings and revenue, but gave lower guidance for FY25 revenue.
Albertsons (ACI, Financial) rose 4.0% after beating earnings estimates, matching revenue expectations, and raising its quarterly dividend from $0.12 to $0.15 per share.
Meta (META, Financial) shares fell 0.6% as employees voiced concerns over the decision to stop fact-checking.
Nvidia (NVDA, Financial) saw a 0.4% increase, with CEO Jensen Huang stating that it will take 15 years before quantum computers become "useful."
Today's News
Micron Technology (MU, Financial) has announced the groundbreaking of a new High-Bandwidth Memory (HBM) advanced packaging facility in Singapore, set to begin operations in 2026. This strategic move aims to bolster Micron's capacity to meet the growing demands of AI, with a significant expansion expected by 2027. The investment, supported by the Singapore government, amounts to approximately $7 billion, positioning Micron to capitalize on AI-driven opportunities.
Nvidia's (NVDA, Financial) CEO Jensen Huang's comments on the future of quantum computing have led to a significant premarket decline in shares of quantum computing companies. Huang stated that "very useful" quantum computers are likely 20 years away, causing Rigetti Computing (RGTI, Financial), Arqit Quantum (ARQQ, Financial), D-Wave Quantum (QBTS, Financial), and IonQ (IONQ, Financial) to see substantial drops. Quantum Computing (QUBT) also experienced a steep decline after announcing a $100 million equity offering.
Vir Biotechnology (CIR, Financial) surged by 42% in premarket trading following promising Phase 1 data for its antitumor agents developed with Sanofi's (SNY) PRO-XTEN technology. The agents, VIR-5818 and VIR-5500, showed early clinical responses and a good safety profile, with no severe cytokine release syndrome, indicating potential in treating HER2-expressing cancers.
Novo Nordisk (NVO, Financial) and Valo Health have expanded their collaboration to develop treatments for cardiometabolic diseases, increasing the number of drug programs from 11 to 20. This expanded agreement allows Valo to receive up to $4.6 billion in milestone payments, along with R&D funding and royalties, as Novo aims to target obesity, type 2 diabetes, and cardiovascular diseases.
Meta Platforms (META, Financial) is undergoing significant changes with the appointment of Dana White and Joel Kaplan to its board and global policy head, respectively. CEO Mark Zuckerberg announced upcoming content moderation changes across Facebook, Instagram, and Threads, aiming to address past moderation issues and promote diverse opinions.
Cal-Maine Foods (CALM, Financial) reported a 4% rise in shares after better-than-expected quarterly results, driven by higher egg prices and reduced production costs. The company plans to invest $60 million in expanding its cage-free capacity and $15 million in enhancing its egg processing facility to meet growing demand.
Arcadium Lithium (ALTM) saw a 7.9% pre-market increase following clearance from the Committee on Foreign Investment in the United States for its acquisition by Rio Tinto (RIO). The deal, which still requires approvals in Australia, Canada, and Italy, is expected to close by mid-2025, despite previous national security concerns.
Enterprise Products Partners (EPD, Financial) announced a 1.9% increase in its quarterly dividend to $0.535 per share, offering a forward yield of 6.7%. This comes as the company continues to navigate the balance between exports and low gas prices, maintaining a strong dividend growth trajectory.
Adobe (ADBE) faced a downgrade from Deutsche Bank due to concerns over monetizing AI initiatives, leading to a 1.2% drop in premarket trading. The bank cited a lack of tangible financial impact from Adobe's AI efforts, particularly in its Firefly project, and questioned the health of its core Creative business.
AMC Entertainment (AMC) CEO Adam Aron disclosed holding 722,820 shares and plans to vest in additional shares, despite the stock's significant decline over the past year. Aron expressed understanding of shareholder frustrations, emphasizing his commitment to the company's future growth.
Absci (ABSI) shares rose following a $20 million investment from Advanced Micro Devices (AMD), marking AMD's entry into the life sciences sector. The investment will support Absci's use of AMD's AI chips, enhancing its capabilities in AI-driven drug creation.
GuruFocus Stock Analysis
- Exxon Mobil Sues Environmental Groups and California AG Over "Myth" of Plastic Recycling Technology by ShantiPutri
- Upstart Holdings: Tailwinds In 2025 Could Drive The Stock Higher by danielurbina
- AWS Plans $11 Billion Investment in Georgia for AI and Cloud Expansion by Faizan Farooque
- Palantir Stock Drops 8% After Insider Sells $36 Million in Shares by Nauman khan
- Disney's Streaming Triumph Invites Analyst Upgrade to Buy Rating by ShantiPutri
