U.S. stock index futures indicated a positive turn for Wall Street after a significant sell-off, with Nasdaq 100 futures (NDX:IND) leading the charge. The rebound comes amidst the release of economic data, including the final estimate for Q3 GDP growth, which showed a robust annualized rate increase of 4.9%. This marks a continuation of the economy's strong performance since the pandemic, despite a slight downward revision from the previous estimate of 5.2%. The data suggests a resilient economic backdrop, even as markets navigate through periods of volatility.
PepsiCo (PEP, Financial) is entering the new year with its stock performance down 7% for 2023, following a gradual decline since May. Despite this, the company has received a Strong Buy rating from Seeking Alpha's Quant Rating system, buoyed by high factor grades for profitability and earnings revisions. With a dividend yield now over 3%, PepsiCo remains a focal point for dividend investors, especially as debates about its potential as a defensive play continue.
Cisco Systems (CSCO, Financial) announced its intention to acquire Isovalent, a provider of open-source cloud-native networking and security solutions. The acquisition is set to enhance Cisco's product offerings, with the Isovalent team joining Cisco's Security Business Group. The terms of the deal, expected to close in Q3 2024, were not disclosed, but the move is seen as a strategic enhancement to Cisco's security and networking capabilities.
United Launch Alliance, a joint venture between Boeing (BA, Financial) and Lockheed Martin (LMT, Financial), has attracted buyout interest from Blue Origin and Cerberus, with Textron (TXT, Financial) also showing intent. This development highlights the competitive dynamics in the space exploration sector, where ULA has been a prominent player in U.S. Department of Defense rocket launches.
Commodity investors are advised to be more "sector-specific" in 2024, with J.P. Morgan analysts expressing a bullish stance on gold (XAUUSD:CUR) and silver (XAGUSD:CUR). The energy sector is expected to see a reversal in natural gas losses and a potential increase in oil prices, with J.P. Morgan projecting oil to trade between $75-90 in 2024.
Initial jobless claims for the week ended Dec. 16 showed a slight increase to 205K, which was less than expected. The data reflects a stable labor market, with the four-week moving average decreasing and continuing claims remaining relatively unchanged.
Micron Technology (MU, Financial) shares surged after reporting first-quarter results that exceeded expectations. The positive outlook is attributed to the anticipated demand for high-bandwidth memory products, particularly driven by artificial intelligence applications, signaling a rebound in the memory sector.
Vodafone (VOD, Financial) experienced a share price increase following reports that Swisscom (SCMWY) and CK Hutchinson are considering bids for Vodafone's Italian operations. The potential acquisition talks underscore the ongoing consolidation and strategic maneuvers within the European telecommunications industry.
Guardant Health (GH, Financial) announced a registered direct offering of its common stock to Baillie Gifford (Trades, Portfolio), aiming to raise approximately $90.7M. The proceeds are intended for general corporate purposes, with the company's shares reacting positively in pre-market trade.
HOOKIPA Pharma (HOOK, Financial) disclosed that Gilead Sciences has increased its stake in the company through a stock purchase, with the potential for additional investment in the future. The deal, which closed on Dec. 20, 2023, has significantly boosted HOOKIPA's share price in premarket trading.
