Today, stock market futures are looking up with the S&P 500 futures increasing by 19 points (0.4%), Nasdaq 100 futures by 95 points (0.5%), and Dow Jones Industrial Average futures by 77 points (0.2%). This uptick is a recovery effort from yesterday's downturn, with significant contributions from big tech and chip manufacturers.
Lower Treasury yields are also playing a part in boosting stocks, with the 2-year note yield dropping by three basis points to 4.60% and the 10-year note yield by one basis point to 4.24%.
Key economic updates to look out for include:
- February Durable Orders, expected at 1.3%, with the previous figure at -6.1%
- Durable Orders excluding transportation, expected at 0.4%, previously at -0.3%
- January Housing Price Indices and March Consumer Credit, both closely watched by investors
In company news:
- Bank of America (BAC, Financial) announced a $160 billion mixed securities offering
- UPS (UPS, Financial) shared its three-year financial targets
- Boeing (BA, Financial) is reportedly considering an external candidate for its new CEO
- Seagate Technology (STX, Financial) received a rating upgrade from Morgan Stanley
- Micron (MU, Financial) had its Buy rating reaffirmed with an increased price target by Mizuho
- Taiwan Semiconductor Manufacturing Co (TSM, Financial) continues to hold an Overweight rating from JPMorgan
Overnight, Asian markets mostly saw gains, with notable movements in Japan, Hong Kong, and China, while European markets are also trading higher. Economic data from these regions provided mixed insights, including updates on consumer sentiment, industrial production, and GDP growth forecasts. Additionally, geopolitical developments such as cyber security concerns between China, New Zealand, the U.S., and the U.K. were highlighted, alongside economic outlook adjustments from Germany and Switzerland.
Today's News
Alibaba (BABA) has halted plans for an IPO of its logistics arm, Cainiao Smart Logistics Network, in Hong Kong, citing strategic realignment. The e-commerce behemoth intends to buy out minority shareholders in Cainiao for $0.62 per share, totaling up to $3.75 billion, aiming for closer integration with its core business segments. This move is part of Alibaba's broader restructuring efforts to enhance operational synergies across its divisions.
The chocolate industry is facing a supply squeeze as cocoa futures (CC1:COM) soar to unprecedented levels, surpassing $9,000 per ton due to severe weather and crop diseases in major producing regions. This supply shortage has propelled cocoa prices to outperform other commodities and investments, including Nvidia (NVDA, Financial) and Bitcoin (BTC-USD, Financial), with remarkable gains over recent periods. The price hike is forcing chocolate manufacturers to adapt by reducing cocoa content and adjusting pricing strategies.
Viking Therapeutics (VKTX, Financial) saw its shares surge premarket after announcing promising results from a Phase 1 trial of its obesity treatment, VK2735. The therapy demonstrated significant weight loss and a favorable safety profile, sparking investor optimism about its potential in the obesity treatment market.
Stock index futures indicated a positive opening, with investors closely watching upcoming economic reports on durable goods and consumer confidence. The financial markets are assessing the implications of these data points for future monetary policy and economic growth prospects.
Goldman Sachs projects a further 66% increase in commodity returns by year-end, supported by cyclical and structural factors. The investment bank highlights commodities as a robust hedge against geopolitical risks, with particular emphasis on copper (HG1:COM), aluminum (LMAHDS03:COM), and oil products (CL1:COM) benefitting from anticipated central bank rate cuts.
Tesla (TSLA) gains attention following reports of discussions with Italian officials about potentially manufacturing electric trucks in the country. This development underscores Tesla's ongoing exploration of European expansion opportunities, with Italy, Spain, and France being considered for a new Gigafactory.
Nvidia's (NVDA, Financial) partner, SK Hynix, plans to invest $4 billion in an advanced chip-packaging facility in Indiana, signaling confidence in the growing demand for high-performance computing and artificial intelligence technologies. This investment is expected to create significant job opportunities and bolster the U.S. semiconductor industry.
Moderna (MRNA) announced that its next-generation COVID-19 vaccine, mRNA-1283, has met primary endpoints in a Phase 3 trial, offering a more robust immune response compared to its predecessor. This development represents a significant milestone in Moderna's efforts to enhance vaccine storage and distribution logistics.
Florida enacts legislation to restrict minors' access to social media platforms, requiring parental consent for users aged 14-15 and banning those under 14. This move reflects growing concerns about the impact of social media on children's well-being and privacy.
Citigroup's (C) UK CEO signals a shift towards selective hiring in fast-growing areas, marking the end of a comprehensive global restructuring effort. This strategic pivot aims to position Citigroup for future growth by capitalizing on emerging opportunities in the financial sector.
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