Today, the stock market looks a bit down from the start. Here's a simple breakdown:
- The S&P 500 futures are slightly down by two points, showing a small dip of 0.1%.
- Nasdaq 100 futures have dropped by 22 points, also down by 0.1%.
- Dow Jones Industrial Average futures are down just two points, basically staying stable.
The market is taking it slow this morning after a bit of a pullback yesterday. With interest rates climbing, the opening is expected to be lower. Specifically, the 2-year note yield has increased a bit to 4.71%, while the 10-year note yield remains the same at 4.37%.
There are a few economic updates to look out for today, including the March ADP Employment Change, the final March S&P Global US Services PMI, and the March ISM Non-Manufacturing PMI.
Also, the weekly MBA Mortgage Applications Index has slightly decreased by 0.6%, following a 0.7% drop last week.
In company news:
- Intel (INTC, Financial) is changing its financial reporting style and expects its Foundry losses to be highest in 2024.
- Cal-Maine (CALM, Financial) reported better earnings and revenue than expected and announced a dividend of about $1.00/share.
- Disney (DIS, Financial) is likely to win its proxy fight with Trian Fund Management, as per reports.
- Dave & Buster's (PLAY, Financial) missed earnings per share expectations but met revenue forecasts and is buying back more shares.
- Paramount (PARA, Financial) reportedly talked about a sale with Skydance last month.
- Signet Jewelers (SIG, Financial) bought back half of its convertible preferred shares early and raised its future earnings guidance.
- Tesla (TSLA, Financial) received a lower price target from Guggenheim, maintaining a Sell rating.
Looking at global markets:
- Stocks in Asia-Pacific mostly went down, with Japan, Hong Kong, and South Korea seeing notable drops.
- Europe's market is fairly steady with slight variations across different countries.
Key economic updates include China's Service PMI staying stable and slight changes in Japan's Services PMI and Hong Kong's Retail Sales. Moreover, Taiwan faced disruptions in chip manufacturing due to an earthquake, and there are updates on international economic policies and forecasts.
Today's News
Taiwan Semiconductor Manufacturing (TSM, Financial) has temporarily halted some chip manufacturing operations due to a 7.4 magnitude earthquake in Taiwan, affecting production for major clients including Apple (AAPL, Financial) and Nvidia (NVDA, Financial). Micron Technology (MU, Financial) and United Microelectronics (UMC, Financial) are also assessing the impact on their operations, ensuring employee safety and evaluating supply chain disruptions.
Walt Disney (DIS, Financial) is bracing for a pivotal shareholder meeting that could reshape its board and influence the company's strategic direction. Activist investor Nelson Peltz (Trades, Portfolio) is vying for a board seat, advocating for improved media profitability and strategic clarity, amidst what's dubbed the most expensive proxy battle in history.
Tesla (TSLA, Financial) faces scrutiny after its Q1 deliveries fell short of expectations, despite recent price cuts. Analysts from HSBC and Morgan Stanley express concerns over Tesla's growth trajectory and the effectiveness of price reductions in boosting sales, adjusting their outlooks and price targets accordingly.
Archer Aviation (ACHR, Financial) announced plans to launch commuter services in Abu Dhabi and Dubai by 2025, setting the stage for competition with Joby Aviation (JOBY, Financial) and other eVTOL companies in the region. This move reflects the growing interest in urban air mobility solutions in the United Arab Emirates.
U.S. Private Sector Employment saw a notable increase in March, with 184K jobs added, surpassing expectations. The ADP report highlighted significant pay gains, especially for job changers in sectors like construction and manufacturing, indicating a robust labor market amidst cooling inflation.
Wolfspeed (WOLF, Financial) experienced a downgrade from Wells Fargo, citing concerns over its heavy reliance on the electric vehicle market, particularly Tesla. The analyst adjusted the price target and rating due to potential demand shortfalls for silicon carbide components.
Boeing (BA, Financial) CEO Dave Calhoun will not seek re-election to Caterpillar's (CAT, Financial) board, focusing on Boeing's challenges, including safety scrutiny following a recent incident with a 737 Max 9 jetliner. This move comes as Boeing aims to stabilize its operations and restore confidence in its aircraft safety.
Amazon (AMZN, Financial) decides to discontinue 'Just Walk Out' technology in its Fresh stores in the U.S., opting for Dash Carts that allow customers to see their receipts and savings in real-time, addressing shopper feedback for a more transparent shopping experience.
Paramount (PARA, Financial) sees its shares rise amid reports of potential exclusive talks with Skydance Media for a deal, highlighting the ongoing discussions about the future of Paramount's film and television studio amidst interest from other major players like Apollo Global (APO).
Canadian Solar's (CSIQ, Financial) Recurrent Energy secures a multi-currency funding facility to support its global project pipeline, emphasizing the company's transition towards becoming an independent power producer and its focus on solar PV and energy storage solutions.
Juniper Networks (JNPR, Financial) announced shareholder approval for its acquisition by HP Enterprise (HPE, Financial), moving closer to finalizing the deal that aims to enhance HP Enterprise's position in the networking and AI sectors.
Chinese drugmaker Hangzhou Jiuyuan Gene Engineering seeks regulatory approval for a biosimilar of Novo Nordisk’s (NVO, Financial) diabetes therapy Ozempic, aiming to introduce a domestically developed alternative in the competitive Chinese market.
Blue Owl Capital (OWL, Financial) announces the acquisition of Kuvare Insurance Services, expanding its asset management capabilities and launching Blue Owl Insurance Solutions, marking a significant step in the company's growth strategy.
Spot gold prices see a slight retreat after reaching a record high, with analysts debating the factors driving the recent rally amidst stable U.S. dollar strength and fluctuating investor interest in gold ETFs.
The National Highway Traffic Safety Administration initiates a probe into Fisker's (FSRN, Financial) Ocean SUVs over door opening failures, highlighting safety concerns as the company faces production and financial challenges.
Helius Medical Technologies (HSDT, Financial) partners with Lovell Government Services to offer its neuromodulation stimulator to federal healthcare systems, aiming to expand access to innovative medical technologies.
Hilton (HLT, Financial) acquires a majority stake in Sydell Group, planning to expand the NoMad Hotels brand globally and enhance its luxury hospitality offerings to meet growing consumer demand for unique experiences.
Vecima Networks (VNWTF, Financial) agrees to purchase assets of Casa Systems' (CASA, Financial) Cable Business, aiming to strengthen its position in the cable and broadband sectors amid Casa's Chapter 11 bankruptcy proceedings.
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