S&P 500 futures are up 35 points, trading 0.7% above fair value. Nasdaq 100 futures are up 205 points, trading 1.1% above fair value. Dow Jones Industrial Average futures are up 64 points, trading 0.2% above fair value.
Nasdaq 100 futures are significantly higher due to NVIDIA's (NVDA, Financial) strong earnings. NVDA shares are up about 7.0% after reporting better-than-expected earnings and revenue, along with strong future guidance. Other large-cap stocks and AI-related names are also performing well in premarket trading.
Treasury yields are slightly down, which is supporting equities. The 10-year note yield is down one basis point to 4.42%, and the 2-year note yield is down one basis point to 4.87%.
Today's economic calendar includes:
- 8:30 ET: Weekly Initial Claims (consensus 219,000; prior 222,000) and Continuing Claims (prior 1.794 million)
- 9:45 ET: Flash May S&P Global U.S. Manufacturing PMI (prior 50.0) and Flash May S&P Global U.S. Services PMI (prior 51.3)
- 10:00 ET: April New Home Sales (consensus 680,000; prior 693,000)
- 10:30 ET: Weekly natural gas inventories (prior +70 bcf)
In corporate news:
- NVIDIA (NVDA, Financial): Shares are up 7.5% after beating earnings by $0.52, surpassing revenue expectations, and providing strong Q2 guidance. The company also announced a ten-for-one forward stock split and raised its quarterly dividend.
- V.F. Corp (VFC): Shares are down 13.6% after missing earnings by $0.34 and missing revenue estimates. The company appointed Paul Vogel as CFO, effective July 8.
- News Corp. (NWSA): Shares are up 7.1% after signing a landmark multi-year global partnership with OpenAI.
- Live Nation (LYV): Shares are down 7.0% amid news that the DOJ and several states will file a lawsuit to attempt a breakup of the company.
- Snowflake (SNOW, Financial): Shares are up 3.8% despite missing earnings by $0.04 but beating revenue estimates. The company provided Q2 and FY25 product revenue growth guidance and reported that talks to acquire Reka AI have collapsed.
- Dupont (DD, Financial): Shares are up 5.0% after announcing plans to separate into three publicly traded companies and reaffirming Q2 and FY24 guidance. Lori Koch will succeed Edward Breen as CEO, effective June 1.
- Synopsys (SNPS): Shares are down 0.3% after reporting April quarter results and providing guidance.
- e.l.f. Beauty (ELF): Shares are up 2.2% after beating earnings by $0.18 and surpassing revenue estimates. The company provided FY25 EPS and revenue guidance below consensus.
- Hasbro (HAS): Shares are up 2.8% after being upgraded to Overweight from Neutral.
- Take-Two Interactive (TTWO): Shares are up 2.2% after being upgraded to Buy from Neutral.
Overnight Developments:
Today's News
Super Micro Computer (SMCI, Financial) shares surged over 5% in premarket trading following Nvidia's (NVDA, Financial) impressive quarterly results and guidance. Bank of America reiterated its Buy rating on the AI server company, highlighting the expanding demand for AI-related accelerated computing. Analyst Ruplu Bhattacharya noted that Super Micro is well-positioned to benefit from this growing demand, especially with tier-2 cloud service providers like CoreWeave and in specific enterprise verticals such as financial services, drug discovery, and autonomous vehicles.
Initial jobless claims fell by 8K for the week ending May 18, totaling 215K, outperforming the expected 220K. This decline underscores the resilience of the U.S. economy despite high interest rates. The four-week moving average rose slightly to 219,750 from the prior week's average of 218,000. Continuing claims increased marginally to 1.794 million from 1.786 million the previous week.
Greenwave Technology Solutions (GWAV, Financial) saw its shares skyrocket by 51.14% in premarket trading after announcing the retirement of all its convertible debt and preferred shares. The company has eliminated $35.2 million in debt since the start of the year and expects to generate around $40 million in revenue in 2024, driven by increased processing volumes of steel and copper.
Alibaba (BABA, Financial) experienced a 5.24% drop in its Hong Kong-listed shares and a 2.5% decline in premarket trading on the NYSE. The decline is attributed to speculation about the potential issuance of $5 billion in convertible bonds. The proceeds are expected to finance share repurchases and support growth initiatives. Earlier this year, Alibaba expanded its share buyback program by adding $25 billion for stock repurchases.
Ford (F, Financial) shares climbed in early trading after Bernstein initiated coverage with an Outperform rating. Analyst Daniel Roeska believes Ford's investments in electric vehicles will eventually bolster its financial results, complementing its already strong pickup truck and large SUV business. The firm expects Ford to see significant operating leverage and profits from its EV unit in the medium term.
National Grid (NGG) shares dropped 8.6% pre-market following the company's announcement of a £60 billion investment in energy network infrastructure over five years, nearly double its previous investment. The funding will be partially sourced through a fully underwritten rights issue of 1.09 billion new shares. National Grid also plans to sell its Grain liquefied natural gas terminal and its U.S. onshore renewables business.
Guardant Health (GH, Financial) had its shares temporarily halted as an FDA Advisory Committee reviewed its marketing application for the Shield blood test for colorectal cancer screening. The committee's decision could potentially position Shield as a competitor to Exact Sciences' (EXAS) Cologuard test. The FDA's advisory committees usually follow the recommendations before making final authorization decisions.
Tesla (TSLA, Financial) broke ground on a $200 million factory in Shanghai to manufacture its Megapack energy storage batteries. This will be Tesla's first battery plant outside the U.S., with mass production expected to begin in early 2025. The factory aims to produce 10,000 Megapack units annually, each capable of storing over 3.9 megawatt hours of energy, enough to power around 3,600 homes for one hour.
DuPont (DD, Financial) shares gained 5% after revealing plans for expansion and positive outlooks in various sectors. Snowflake (SNOW, Financial) also saw a rise of over 4% following mixed Q1 results but an upbeat outlook for future revenue. Nvidia (NVDA, Financial) shares soared 6% after reporting better-than-expected quarterly results and announcing a 10-to-1 stock split, effective June 7, along with a 150% increase in its quarterly dividend.
Medtronic (MDT, Financial) set its full-year earnings outlook for FY25 in line with consensus, citing forex-related headwinds. The company's FY25 non-GAAP diluted earnings per share is expected to be $5.40–$5.50. Medtronic also announced a dividend hike, which, along with exceeding analysts' expectations, helped tick its shares higher premarket.
Saratoga Investment (SAR, Financial) announced a 1.4% increase in its quarterly dividend to $0.74 per share, with a forward yield of 12.75%. The dividend is payable on June 27 to shareholders of record on June 13.
GuruFocus Stock Analysis
- Starbucks: The Quality Remains by Evin Rohrbaugh
- Take Advantage of Shopify's Dip by James Foord
- Amazon Is Flying High, but Is It Now Overvalued? by Parker Schwartz, CFA
- Stanley Black & Decker: A Dividend Aristocrat With Value Potential by Hoang Quoc Anh
