S&P futures vs fair value: +2.00. Nasdaq futures vs fair value: +31.00.
The S&P 500 futures are up two points, trading 0.1% above fair value. The Nasdaq 100 futures are up 31 points, trading 0.2% above fair value. The Dow Jones Industrial Average futures are up 16 points, trading 0.1% above fair value.
Stock futures are slightly higher ahead of the May Employment Report at 8:30 a.m. ET. Treasury yields are also slightly up. The 10-year note yield is up two basis points to 4.30%, and the 2-year note yield is up three basis points to 4.75%.
Other data today include the April Wholesale Inventories report at 10:00 a.m. ET and the April Consumer Credit report at 3:00 p.m. ET.
Commodity futures are mixed this morning. WTI crude oil futures are 0.7% higher at $76.11/bbl, natural gas futures are 2.1% higher at $2.88/mmbtu, and copper futures are 2.0% lower at $4.58/lb.
In corporate news:
- GameStop (GME, Financial) is down 13.9% after missing earnings by $0.03 and revenue expectations. The company filed a prospectus supplement for the sale of up to 75 million shares of Class A common stock. Keith Gill, known as "Roaring Kitty," will host a GME livestream on YouTube today at noon ET.
- Vail Resorts (MTN) is down 7.4% after missing earnings by $0.46 and revenue expectations.
- DocuSign (DOCU) is down 6.4% despite beating earnings by $0.03 and reporting in-line revenues. The company guided Q2 and FY25 revenues in-line and announced a $1 billion increase to its share repurchase program.
- Microsoft (MSFT) is up 0.1% after Oppenheimer raised its price target to $500 from $450.
- SPDR S&P Regional Banking ETF (KRE) is up 0.1% as Moody's reviews several U.S. regional banks for possible downgrade.
- Apple (AAPL, Financial) is up 0.3% as it plans to launch a passwords app on June 10, coinciding with its WWDC event.
- NVIDIA (NVDA, Financial) is down 0.3% ahead of its 10-for-1 stock split, which takes place after today's close.
Reviewing overnight developments:
Today's News
GameStop (GME, Financial) experienced a sharp decline in its stock price after releasing its Q1 earnings report earlier than anticipated, missing Wall Street estimates. The company also announced plans to sell 75M shares, leading to a 5% drop in its stock price to $44.11/share. The video game retailer reported a significant year-over-year decline in hardware and accessories sales by 30.4%, and software sales fell by 29.1%. Additionally, GameStop's selling, general, and administrative expenses were $295.1M, or 33.5% of Q1 net sales, compared to $345.7M, or 27.9% of net sales in the previous year.
Taiwan Semiconductor Manufacturing (TSM) reported a 30.1% year-over-year increase in revenue for May, reaching NT$229.62B (approximately $7.1B), driven by strong demand for AI products. However, the company saw a month-over-month decline of 2.7% from April's revenue of NT$236.02B. For the first five months of 2024, TSM's revenue amounted to NT$1.058T, marking a 27.2% increase compared to the same period in 2023.
Geron (GERN) saw a significant 17% premarket increase in its stock price after the FDA approved its lead asset, imetelstat, for treating myelodysplastic syndromes (MDS). The approval allows Geron to market the drug under the name Rytelo for adults with low- to intermediate-risk MDS who require blood transfusions and have not responded to other treatments. This positions Geron to compete with Bristol Myers (BMY) and Merck (MRK), which also offer MDS therapies.
Welltower (WELL, Financial) announced a 9.8% increase in its dividend, raising the payout to $0.67 per share from the previous $0.61. Essential Properties (EPRT, Financial) also declared a dividend increase of 1.8%, bringing the new amount to $0.29 per share. Oil-Dri Corporation of America (ODC) raised its dividend by 6.9% to $0.31 per share. Additionally, Verizon (VZ) and Philip Morris (PM, Financial) declared their upcoming dividend payments, with ex-dividend dates approaching for Nvidia (NVDA, Financial) and Alphabet (GOOGL).
Johnson & Johnson (JNJ, Financial) received FDA clearance for its Velys robotic-assisted solution, expanding its use for unicompartmental knee arthroplasty (UKA). The system is designed to allow implant placement without a CT scan and will be compatible with J&J's SIGMA HP partial knee implant. This approval builds on Velys' current application in total knee arthroplasty, addressing an unmet medical need by providing cost and clinical advantages.
Virgin Galactic Holdings (SPCE, Financial) announced the launch window for its last commercial flight of the VSS Unity on the suborbital Galactic 07 Mission, set to open on June 8. The company plans to use its new Delta class vehicle in the future, which could fly once or twice a week, significantly increasing its flight cadence compared to the current once-a-month limit of the SpaceShipTwo-class VSS Unity.
Blue Owl Capital (OWL, Financial) closed the $170M acquisition of the real estate lender Prima Capital Advisers. The deal, originally announced in April, was completed with funds managed by Stone Point Capital. OWL shares saw a 1.61% increase in pre-market trading following the announcement.
Oddity Tech (ODD, Financial) revised its Q2 guidance, expecting net revenue of approximately $189M, representing a 25% year-over-year growth. The company also expects a gross margin of around 71% and adjusted EBITDA of approximately $60M. Oddity's Board of Directors approved a share buyback program to repurchase up to $150M worth of shares, with the plan set to expire on June 30, 2027.
Energy Transfer (ET, Financial) priced its concurrent offerings of senior notes and junior subordinated notes, raising approximately $3.463 billion and $396 million, respectively. The proceeds are expected to fund the acquisition of WTG Midstream Holdings LLC and refinance existing indebtedness. The sale is expected to settle on June 21, 2024.
Philip Morris (PM, Financial) declared a $1.30 per share quarterly dividend, maintaining a forward yield of 4.99%. The dividend is payable on July 8, with an ex-dividend date of June 21. This follows a seven-session gain streak for Philip Morris, bringing the stock near its 52-week high.
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