Stock futures edged higher in the early trading hours of Wednesday as market participants eagerly awaited the Federal Reserve's interest rate decision. The anticipation of the Federal Open Market Committee's (FOMC) meeting outcome, along with Chairman Jerome Powell's press conference, has investors on the lookout for any signs of future rate cuts. Analysts predict that the FOMC will likely maintain rates but are divided on whether the dot plot will indicate two or three cuts for 2024.
Pfizer (PFE, Financial) shares tumbled in premarket trading after the company released its 2024 guidance, which fell short of analysts' expectations. The pharmaceutical giant is forecasting revenues between $58.5B to $61.5B and adjusted earnings per share of $2.05 to $2.25, which includes the impact of its acquisition of Seagen (SGEN, Financial). This guidance is notably lower than the consensus estimates of $63.18B in revenue and $3.17 earnings per share. Pfizer is set to complete the Seagen acquisition on Thursday, with regulatory approvals in place.
Alphabet (GOOG, GOOGL) saw its shares rise as J.P. Morgan named the tech behemoth as one of its top picks for 2024. The firm's analysts expect Alphabet to experience revenue growth across its various segments, including search, YouTube, and cloud services. They also anticipate improvements in margins and have raised their price target for the company's shares.
Morgan Stanley has adjusted its view on the Telecom & Networking Equipment industry to In-Line from Cautious, citing more reasonable valuations. The firm's top pick, Keysight Technologies (KEYS, Financial), maintains an Overweight rating due to its valuation opportunity and potential for double-digit earnings growth. Other Overweight-rated companies include Pure Storage (PSTG, Financial), Arista Networks (ANET, Financial), and Corning (GLW, Financial), while Coherent (COHR, Financial) was downgraded to Equal-weight.
General Electric (GE, Financial) was highlighted as a top stock pick for the manufacturing industry in 2024 by Bank of America analysts. Alongside GE, other top picks include Vertiv Holdings (VRT, Financial), Api Group (APG, Financial), ITT (ITT, Financial), Emerson (EMR, Financial), and Parker-Hannafin (PH, Financial). GE is expected to demonstrate rapid earnings growth, particularly after its planned spin-off of its power generator business.
The Producer Price Index (PPI) for November indicated no change, suggesting a halt in producer inflation. This flat reading was below the expected 0.1% increase and follows a 0.4% decline in October. Year-over-year, the PPI rose by 0.9%, which is slightly below the anticipated 1.0% increase.
Canopy Growth (CGC, Financial) saw its shares plummet after announcing a 1 for 10 share consolidation to meet Nasdaq's listing requirements. The consolidation is set to take effect on December 15, with post-consolidation trading on the TSX and Nasdaq beginning on December 20.
Shattuck Labs (STTK, Financial) experienced a significant surge in its stock price, over 100%, following the announcement of positive initial topline data from its clinical trial for a treatment in myelodysplastic syndromes and acute myeloid leukemia. Other notable gainers included Innovative International Acquisition (IOAC, Financial), Applied UV (AUVI, Financial), and QuantaSing Group (QSG, Financial).
Tesla (TSLA, Financial) announced a recall of over 2 million vehicles due to concerns that its Autopilot system may not adequately keep drivers engaged. The recall comes after an investigation by the National Highway Traffic Safety Administration into several crashes involving the use of Autopilot.
Alaska Airlines (ALK, Financial) revealed a partnership with Porter Airlines, aiming to leverage Porter's strong presence in Eastern Canada and Alaska's established routes on the U.S. West Coast. The collaboration will offer combined itineraries and benefits for loyalty program members of both airlines.
Microsoft (MSFT, Financial) shares gained as Truist Securities initiated coverage with a buy rating, setting a three-year price target of $600. The firm highlighted Microsoft's potential growth drivers, including artificial intelligence, Azure cloud services, and the Copilot productivity tool.
JPMorgan Chase & Co (JPM, Financial) disclosed a significant insider sale by Marianne Lake, who sold 32.2K shares worth $5.2M. The transaction is part of the recent insider trading activity, which includes both purchases and sales within the company.
