Today's stock market is showing positive signs with slight gains across major indices. Here's a brief rundown:
- The S&P 500 futures are up by 2 points.
- Nasdaq 100 futures have risen by 25 points.
- Dow Jones Industrial Average futures are up by 11 points.
These increases come after a strong performance yesterday, spurred by favorable CPI data, which pushed the indices to record highs as market rates declined. Treasury yields have seen minimal changes with the 10-year note dropping slightly by three basis points to 4.33%, while the 2-year note yield has increased by one basis point to 4.75%.
Key economic indicators scheduled for today include:
- April's Housing Starts and Building Permits.
- Weekly Initial and Continuing Claims.
- April's Industrial Production and Capacity Utilization.
- Weekly natural gas inventory figures.
In corporate news:
- Walmart (WMT, Financial) reported earnings and revenue that topped estimates and provided an optimistic outlook for the coming quarters.
- Cisco (CSCO) also surpassed earnings expectations and provided a promising revenue forecast for the next quarter.
- JD.com (JD) and Baidu (BIDU, Financial) both reported earnings that beat estimates with revenues aligning with expectations.
- Deere (DE) exceeded earnings forecasts and shared guidance for FY24.
- Amazon.com (AMZN, Financial) faces a lawsuit from Arizona's Attorney General for alleged unfair practices.
- AT&T (T) has entered into a significant agreement with AST SpaceMobile to develop a space-based broadband network.
- Chubb (CB) saw a notable investment from Berkshire Hathaway, boosting its stock significantly.
- SilverBow Resources (SBOW) confirmed an acquisition deal with Crescent Energy, offering a lucrative cash or stock option to its shareholders.
Reviewing overnight developments:
Today's News
MicroStrategy (MSTR, Financial) experienced a significant surge, climbing 16% after MSCI announced its inclusion in the MSCI World Index effective May 31, 2024. The company, known for its substantial bitcoin holdings valued at $5.07 billion as of March 31, benefited not only from this inclusion but also from a concurrent rise in bitcoin prices. This news places MSTR alongside other notable additions like Pure Storage (PSTG) and Emcor Group (EME) in the MSCI index.
Walmart (WMT, Financial) saw its shares rise after reporting first-quarter earnings that exceeded consensus estimates. The retail giant posted a 3.8% increase in U.S. comparable sales, surpassing the expected 3.4%. E-commerce sales jumped 21%, significantly contributing to the overall sales growth. Internationally, Walmart's sales rose 10.7% to $29.8 billion, with its global advertising business expanding by approximately 24%.
Under Armour (UAA, Financial) faced a downturn as shares dropped due to disappointing fourth-quarter results and bleak profit guidance for FY25. Despite achieving a slight earnings beat, the company reported a 39% decline in adjusted profit and a 5% decrease in revenue. The decline was particularly pronounced in wholesale revenue and footwear sales, underscoring strategic challenges and inventory issues.
Johnson & Johnson (JNJ, Financial) announced a strategic acquisition of Proteologix for $850 million in cash, aiming to bolster its portfolio in treating atopic dermatitis. This acquisition, expected to close in mid-2024, will add Proteologix’s promising bispecific antibodies targeting IL-13 to JNJ’s pipeline, potentially enhancing treatment options for moderate-to-severe atopic dermatitis and asthma.
Roche (RHHBY, Financial) revealed promising results from a Phase 1 trial of its obesity therapy, CT-388, which led to an average weight loss of 18.8% over 24 weeks. This significant outcome, stemming from its acquisition of Carmot Therapeutics, positions Roche strongly in the obesity treatment market, with CT-388 showing potential in reducing blood glucose levels in prediabetic participants.
Third Point, managed by Dan Loeb, adjusted its investment portfolio by increasing stakes in Amazon.com (AMZN, Financial) and Intercontinental Exchange (ICE, Financial) while initiating new positions in companies like Alphabet (GOOGL, Financial) and Marvell Technology (MRVL, Financial). This reshuffling reflects a strategic realignment in response to evolving market conditions.
Chevron (CVX, Financial) is preparing to divest its remaining oil and gas assets in the U.K. North Sea, a significant move as it exits the region after over five decades. The sale, potentially fetching up to $1 billion, includes a notable stake in the Clair oilfield. This decision aligns with Chevron’s strategy of capital discipline amidst global shifts in energy production and taxation.
Baidu (BIDU, Financial) reported robust first-quarter earnings, with a 24% increase in non-GAAP earnings per ADS and a slight revenue increase to $4.37 billion. This performance was bolstered by stable online marketing revenue and growth in AI cloud services, highlighting Baidu’s ongoing optimization and expansion of its AI technology stack.
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