Today's stock market is looking pretty steady as we kick things off. Here's a quick rundown:
- The S&P 500 is not showing much change from yesterday.
- The Nasdaq 100 is slightly up, by about seven points.
- The Dow Jones Industrial Average is also up a bit, increasing by 11 points.
This calm start comes after last week's notable drops, driven by rising market rates and adjustments in expectations for rate cuts.
Investors are on their toes with a big week ahead. We're expecting an update on inflation through the March Consumer Price Index this Wednesday. Plus, earnings season begins on Friday with reports from major banks like JPMorgan Chase (JPM), Wells Fargo (WFC), and Citigroup (C).
Meanwhile, treasury yields are climbing, with the 10-year note yield now above 4.40%.
There aren't any major US economic updates today, but here are some key company highlights:
- Taiwan Semiconductor Manufacturing (TSM) is getting up to $6.6 billion for a new project in Phoenix, thanks to the chips act funding.
- Boeing (BA) and Southwest Airlines (LUV) are under the FAA's lens after an incident with Flight 3695.
- Coinbase Global (COIN) is seeing a boost with rising cryptocurrency prices, Bitcoin notably at $72,339.
- Apple (AAPL) has complied with an EU demand regarding music apps.
- Spirit Airlines (SAVE) has postponed aircraft deliveries from Airbus to between 2030 and 2031.
- Applied Materials (AMAT) received a positive rating change from Cantor Fitzgerald, with a new target price.
Looking at overnight developments:
Today's News
Blackstone (BX) has made a significant move in the real estate sector by agreeing to purchase Apartment Income REIT (AIRC) for approximately $10 billion, sending AIRC shares soaring by 24% in premarket trading. The deal, which values AIRC at $39.12 per share, represents a 25% premium over its last closing price. Blackstone's plan includes a $400 million investment to enhance the 76 properties owned by AIR Communities, marking another ambitious acquisition following its $3.5 billion deal for Tricon Residential earlier this year.
Amidst growing competition in the electric vehicle (EV) market, Tesla (TSLA) remains in the spotlight, particularly regarding its ambitious robotaxi project. Despite Elon Musk's repeated assurances since 2019, the full realization of a robotaxi fleet faces significant challenges due to the complexity of achieving near-perfect system accuracy under various conditions. Tesla's stock edged higher as Musk disputed reports of canceling plans for the mass-market Model 2, emphasizing the strategic importance of being the first to achieve full autonomy.
JPMorgan Chase (JPM) CEO Jamie Dimon has issued a cautionary note to the markets, suggesting that the likelihood of a soft landing for the U.S. economy is lower than what current equity valuations and credit spreads suggest. Dimon's annual letter to shareholders highlights concerns over high equity values and tight credit spreads, pointing to potential turbulence ahead.
Microsoft (MSFT) is set to bolster its artificial intelligence (AI) capabilities with the opening of a new AI hub in London. The initiative, led by Mustafa Suleyman, aims to leverage the UK's rich talent pool and AI ecosystem, reflecting Microsoft's commitment to advancing AI technology responsibly and driving economic growth.
Taiwan Semiconductor Manufacturing (TSM) has secured a tentative deal with the U.S. for up to $6.6 billion in grants and $5 billion in loans under the CHIPS and Science Act. This agreement supports TSMC's expansion in Arizona, where it plans to build a third fab for manufacturing advanced semiconductors, representing a total investment of over $65 billion.
Gold prices are expected to surge, with UBS raising its year-end forecast to $2,500 an ounce. The increase in gold ETF holdings, anticipated once the Federal Reserve begins rate cuts, is seen as a key driver for the metal's performance. Gold's recent rally has already set new records without the typical support from ETF buying.
Bitcoin (BTC-USD, Financial) continues its remarkable ascent, with a 157% increase over the past year and a nearly 63% rise this year. The leading cryptocurrency surpassed the $72,000 mark, with the upcoming halving event expected to maintain positive momentum across the digital token landscape, including Ether (ETH-USD) and meme coins like Dogecoin (DOGE-USD).
Iris Energy (IREN, Financial) has expanded its AI cloud services agreement with Poolside, nearly doubling the contracted cluster size to 504 NVIDIA H100 GPUs. This move underscores Iris Energy's commitment to leveraging its computational resources for AI applications, following a successful initial deployment.
Model N (MODN, Financial) has announced a significant development, with Vista Equity Partners set to acquire the company in an all-cash transaction valued at approximately $1.25 billion. This deal will see Model N transition to a privately held entity, emphasizing the strategic value Vista Equity Partners sees in Model N's offerings.
Alibaba (BABA, Financial) is aggressively reducing prices for its cloud services globally, cutting costs by up to 59% to stay competitive and attract AI software developers. This marks the third price reduction in a year, highlighting Alibaba's determination to maintain its edge over rivals in the rapidly evolving cloud and AI services market.
Sono-Tek (SOTK, Financial) has reported a 30% increase in net sales for the fourth quarter, with a strong equipment-related backlog indicating sustained demand for its ultrasonic coating technologies. The company anticipates further growth in the coming quarter, reflecting positive business indicators across its operations.
Ocugen (OCGN, Financial) has received FDA clearance to proceed with a late-stage clinical trial for its gene therapy product candidate, OCU400, aimed at treating retinitis pigmentosa. This milestone is a significant step towards addressing the unmet medical needs of patients with this rare eye disease.
EHang Holdings (EH, Financial) has achieved a major regulatory milestone by obtaining the Production Certificate for its EH216-S eVTOL aircraft from the Civil Aviation Administration of China. This certification paves the way for mass production and commercial operations, marking a historic moment in the global eVTOL industry.
