The S&P 500 futures are up two points (0.1% above fair value), Nasdaq 100 futures are up 28 points (0.2% above fair value), and Dow Jones Industrial Average futures are down 16 points (0.1% below fair value).
Stock futures are mostly flat after yesterday's strong market rally. NVIDIA (NVDA, Financial) shares are up nearly 2.0% premarket after reaching a $3 trillion market value yesterday, but this hasn't boosted the broader market. Investors are cautious ahead of the European Central Bank's (ECB) expected rate cut announcement at 8:15 ET.
Treasury yields are slightly up, keeping equities in check. The 10-year note yield is up two basis points to 4.31%, and the 2-year note yield is up one basis point to 4.74%.
Today's economic data includes:
- 8:30 ET: Revised Q1 Productivity (0.3%), revised Q1 Unit Labor Costs (4.7%), weekly Initial Claims (216,000), Continuing Claims (1.791 million), and April Trade Balance (-$76.5 billion)
- 10:30 ET: Weekly natural gas inventories (+84 bcf)
In corporate news:
- Costco (COST): Reports adjusted comparable sales growth of +6.5% for May
- NVDA: Up nearly 2.0% premarket after reaching $3 trillion in market value
- Old Dominion (ODFL): Reports operating metrics for May
- Smartsheet (SMAR): Beats earnings by $0.05, beats on revenue; Q2 EPS above consensus, revenue in-line; FY25 EPS above consensus, revenue in-line
- Microsoft (MSFT, Financial): AI deal being probed by regulators
- lululemon athletica (LULU): Beats earnings by $0.14, revenue in-line, comps up +6%; Q2 EPS and revenue below consensus; FY25 EPS above consensus, reaffirms revenue guidance; increases repurchase plan
- Semtech (SMTC): Beats earnings by $0.05, beats on revenue; Q2 EPS and revenue in-line
- Sprinklr (CXM): Beats earnings by $0.02, revenue in-line; Q2 EPS and revenue below consensus; FY25 EPS above consensus, revenue below consensus; appoints Trac Pham as co-CEO
- Five Below (FIVE): Misses earnings by $0.03, misses on revenue and comps; Q2 EPS and revenue below consensus; FY25 EPS and revenue below consensus; lowers FY25 comp guidance
- Victoria's Secret (VSCO): Beats earnings by $0.03, revenue in-line; Q2 EPS in-line; reaffirms FY25 revenue guidance
- ChargePoint (CHPT): Beats earnings by $0.02, beats on revenue; Q2 revenue below consensus
Overnight developments:
Today's News
NIO (NIO, Financial) saw a drop in early trading on Thursday after reporting a 7.2% year-over-year decline in revenue to $1.37 billion for Q1, missing consensus by $70 million. Vehicle deliveries also decreased by 3.2% from Q1 2023 and by 39.9% from Q4 2023, with 30,053 units delivered. Despite an increase in vehicle margin to 9.2% from 5.1% a year ago, it was down from 11.9% in Q4. The company cited intensifying market competition as a factor.
Novavax (NVAX, Financial) surged nearly 20% in premarket trading after the FDA accepted its marketing application for its COVID-19 vaccine. The FDA set April 2025 as the target action date for the biologics license application. Novavax plans to roll out its updated COVID shot for the 2024–2025 immunization drive under its current emergency use authorization in the U.S.
Apple (AAPL, Financial) experienced low-double digit growth in App Store revenue in the early part of its fiscal third quarter, according to Bank of America. App Store revenue increased 11% year-over-year to $5.4 billion, with May showing a 12% year-over-year rise. Gaming revenue, which accounts for 52% of total App Store revenue, rose 6% year-over-year to $2.8 billion.
GSK (GSK, Financial) announced it acquired Elsie Biotechnologies for up to $50 million. Elsie Biotechnologies specializes in oligonucleotide therapeutics, which GSK has leveraged in its studies against liver diseases. The acquisition builds on a previous research partnership between the two companies.
Nvidia (NVDA, Financial), Microsoft (MSFT, Financial), and Microsoft-backed OpenAI are under a new antitrust investigation by the Department of Justice and Federal Trade Commission. The probe will examine the dominant roles these companies play in the AI industry amid Nvidia's meteoric rise, with its stock up 150% YTD and +770% since the beginning of 2023.
Vanda Pharmaceuticals (VNDA, Financial) jumped 22% in premarket trading following an unsolicited takeover offer from Cycle Pharmaceuticals. Cycle offered $8 per share in cash, valuing Vanda at $460 million, a 58% premium to its closing price on Wednesday. Vanda had previously rejected a sweetened bid from Future Pak.
Iris Energy (IREN, Financial) reported it mined 230 bitcoins in May, down from 358 in April. The decrease was due to a reduced block subsidy post-halving, partially offset by a 14% increase in average operating hashrate. The company expects to achieve 20 EH/s in Q3 and 30 EH/s hashrate in Q4 of 2024.
The European Central Bank cut its policy rates by 25 basis points, its first cut in almost five years. The new rates are 4.50% for the marginal lending rate, 4.25% for the main refinancing rate, and 3.75% for the deposit facility rate. Despite progress on inflation, domestic price pressures remain strong.
Seres Therapeutics (MCRB, Financial) announced it reached a non-binding agreement to sell its FDA-approved microbiome therapy Vowst and related intellectual property rights to Nestlé Health Science. The transaction is expected to complete within 90 days, subject to definitive agreements and shareholder approval. The proceeds will be used to reduce debt and support other developments.
Scotts Miracle-Gro (SMG, Financial) reduced its FY 2024 adjusted EBITDA guidance to $530M-$540M, down from prior guidance of $575M. The company reaffirmed its $1B free cash flow target over two years and expects to pay down an additional $350M in debt. The Hawthorne segment's adjusted EBITDA is expected to hit breakeven or better by year-end.
Core Scientific (CORZ, Financial) rejected an unsolicited offer from CoreWeave to acquire the company for $5.75 per share in cash. The company stated that the offer significantly undervalues it but remains focused on executing its series of 12-year contracts with CoreWeave, expected to generate over $3.5 billion in revenue.
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