This morning, the stock market is showing signs of recovery from yesterday's drop. Here's a quick summary:
- The S&P 500 futures are up by 15 points, a 0.3% increase.
- Nasdaq 100 futures have climbed 75 points, marking a 0.4% rise.
- Dow Jones Industrial Average futures are higher by 90 points, up 0.2%.
These increases come after a dip yesterday afternoon, with big companies' stocks leading the way. Everyone's looking forward to the March employment report due at 8:30 AM.
Treasury yields haven't changed much, with the 10-year note up by two basis points at 4.33% and the 2-year note also up two basis points at 4.66%. The stock market has been really influenced by these Treasury movements this week.
In company news:
- Kura Sushi (KRUS) reported earnings that were a bit short but had good revenue. They expect next year's revenue to meet predictions.
- Duke Energy (DUK) is selling its share in a joint venture to John Laing.
- Apple (AAPL, Financial) cut over 600 jobs after shutting down its car project.
- Enphase Energy (ENPH) announced that their Chief Commercial Officer is stepping down next year.
- Johnson & Johnson (JNJ, Financial) is buying Shockwave Medical, with a call to discuss the deal at 8:30 AM.
- Teladoc (TDOC, Financial) sees its CEO leave immediately, with the CFO stepping in temporarily. They're sticking to their financial forecast.
- Netflix (NFLX) got a thumbs up from Pivotal Research with a higher price target.
Looking at overnight developments:
Today's News
Micron Technology (MU, Financial) witnessed a slight uptick in premarket trading as Citi highlighted the company's potential revenue surge from dynamic random access memory pricing and high-bandwidth memory sales, particularly for artificial intelligence applications. Micron's collaboration with Nvidia (NVDA, Financial) on high-bandwidth memory chips for GPUs underscores the optimism surrounding its financial outlook, with sales projections reaching up to $3B by 2025.
Johnson & Johnson (JNJ, Financial) announced its acquisition of Shockwave Medical (SWAV, Financial) for approximately $13.1B, a strategic move to bolster its MedTech division with Shockwave's innovative intravascular lithotripsy technology. This acquisition, expected to close by mid-2024, is set to enhance J&J's dominance in the MedTech sector, despite anticipated dilution in adjusted earnings per share for the next two years.
Dividend activity this week featured increases from Phillips 66 (PSX, Financial) and Bank OZK (OZK, Financial), alongside declarations from PNC Financial (PNC, Financial) and Citigroup (C, Financial). Notably, Mastercard (MA, Financial) and AT&T (T, Financial) are approaching their ex-dividend dates, signaling ongoing shareholder returns amidst the broader market's focus on dividend payouts.
Stock index futures experienced growth as the market anticipated the March nonfarm payrolls data, a critical indicator for future rate adjustments. With expectations set for a significant increase in payrolls, the data could influence the market's direction, highlighting the ongoing scrutiny of labor market dynamics and inflationary pressures.
Cytokinetics' (CYTK, Financial) open-label extension trial for its hypertrophic cardiomyopathy drug, aficamten, demonstrated sustained improvements, reinforcing the drug's potential ahead of its phase 3 evaluation. This positive development reflects the company's commitment to addressing cardiac conditions, despite speculation surrounding its future strategic directions.
Apple (AAPL, Financial) is preparing for its first significant job reduction since the pandemic, affecting over 600 employees in California. This move, following the discontinuation of its electric vehicle project, underscores the tech giant's strategic realignment as it navigates evolving project priorities and technological advancements.
Google's (GOOG, GOOGL) potential bid for HubSpot (HUBS, Financial) underscores the strategic value of the marketing software company, despite regulatory hurdles. Such a deal could significantly impact the marketing tech landscape, highlighting the competitive dynamics and strategic interests of major technology firms.
Altice USA (ATUS, Financial) faced a downgrade from Wells Fargo, reflecting concerns over the intensified competition from fiber and fixed wireless access services. This adjustment in rating and price target emphasizes the challenges cable providers face in a rapidly evolving telecommunications landscape.
Lindsay Corporation (LNN, Financial) maintained its quarterly dividend, signaling steady shareholder returns amidst its financial performance and strategic initiatives. This announcement aligns with the company's commitment to providing consistent value to its investors.
Wolfspeed (WOLF, Financial) received a neutral rating from Mizuho Securities, reflecting mixed prospects for the silicon carbide market. Despite the potential for growth, concerns over competition and market demand highlight the uncertainties facing the company's strategic positioning.
Teladoc Health (TDOC, Financial) announced a leadership transition with Mala Murthy stepping in as acting CEO. This change comes as the company reaffirms its financial guidance, indicating a focus on continuity and strategic execution during this transition period.
AstraZeneca (AZN, Financial) shared promising results from its ADRIATIC Phase 3 trial for Imfinzi, showcasing significant survival benefits in small cell lung cancer treatment. This development underscores the company's progress in expanding its oncology portfolio and enhancing patient outcomes.
Saxo Bank's projection for gold prices to potentially reach $2,500 an ounce reflects expectations for lower U.S. interest rates, underscoring the precious metal's investment appeal amidst economic uncertainties.
Inspired Entertainment (INSE, Financial) received a Buy rating from B. Riley Securities, highlighting its potential for significant growth and digital market leadership. This optimistic outlook emphasizes the company's strategic initiatives and market positioning.
Zimbabwe's anticipated launch of a new currency backed by gold reserves aims to stabilize its financial system amid ongoing currency devaluation. This strategic move reflects the country's efforts to address economic challenges and restore confidence in its monetary policy.
Disney (DIS, Financial) outlined plans to implement charges for password sharing across its streaming services, a strategy aimed at enhancing platform profitability and subscriber engagement. This initiative, part of a broader effort to optimize streaming operations, highlights the industry's evolving business models.
Retail Opportunity Investments (ROIC, Financial) experienced a downgrade due to concerns over its growth prospects and acquisition strategy. This assessment reflects the challenges facing the retail real estate sector, emphasizing the importance of strategic differentiation and external growth opportunities.
HUB Cyber Security (HUBC, Financial) saw a significant stock increase following the announcement of an $8 million financing deal, highlighting investor confidence in its growth prospects and market positioning.
Presto Automation (PRST, Financial) filed a prospectus for the resale of over 100 million shares, indicating ongoing capital market activities and shareholder interests.
Teradata (TDC, Financial) announced a leadership change with Richard Petley appointed as chief revenue officer, signaling a strategic focus on revenue generation and market expansion.
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