The S&P 500 futures are up 20 points, trading 0.4% above fair value. Nasdaq 100 futures are up 100 points, trading 0.5% above fair value. Dow Jones Industrial Average futures are up 30 points, trading 0.1% above fair value.
There's a positive bias in early trading due to pre-open gains in many mega cap stocks. NVIDIA (NVDA, Financial) is a standout, showing a 3% gain ahead of the open.
Treasury yields are mostly unchanged this morning. The 2-year note yield is up three basis points to 4.73%, and the 10-year note yield is up three basis points to 4.25%.
In international news, the Swiss National Bank unexpectedly lowered its policy rate by 25 basis points to 1.25%. The Bank of England kept its bank rate at 5.25%, which was expected. The People's Bank of China made no changes to its one-year and five-year loan prime rates, as expected.
The weekly MBA Mortgage Applications Index showed a 0.9% increase following last week's 15.6% rise. The June NAHB Housing Market Index fell to 43 from 45 in May.
Today's economic lineup includes:
- 8:30 ET: May Housing Starts (consensus 1.358 mln; prior 1.360 mln), Building Permits (consensus 1.455 mln; prior 1.440 mln), weekly Initial Claims (consensus 237,000; prior 242,000), Continuing Claims (prior 1.820 mln), Q1 Current Account Balance (consensus -$203.0 bln; prior -$194.8 bln), and June Philadelphia Fed survey (consensus 6.5; prior 4.5)
- 11:00 ET: Weekly crude oil inventories (prior +3.73 mln)
In corporate news:
- Apple (AAPL): Hacker claims breach of Apple source code
- Accenture (ACN, Financial): Misses by $0.03, reports revenues in-line; guides Q4 revenues in-line; lowers FY24 EPS guidance; narrows FY24 revenue guidance; announces intent to acquire Fibermind to strengthen fiber and mobile 5G Network Services
- KB Home (KBH): Beats by $0.35, beats on revenues, raises low end of FY24 housing revenue guidance; expects Q3 housing revenues of $1.65-1.75 bln, does not compare to consensus; projecting overall average selling price of approximately $482,000
- Darden Restaurants (DRI): Beats by $0.04, reports revenues in-line, consolidated same-restaurant sales of 0.0%; guides FY25 EPS in-line, revenues below consensus
- Winnebago (WGO): Misses by $0.18, misses on revenues
- NVIDIA (NVDA, Financial): Up another 3% in premarket action; Stifel raised its price target to $165 from $114
- Advanced Micro (AMD): Lower as chip maker investigates claim from cybercriminal organization that it stole information in a hack
- Boeing (BA): 737 Max crash victims want $25 bln fine
Reviewing overnight developments:
Today's News
Palantir (PLTR, Financial) has secured a pivotal role as the exclusive supplier of enterprise-wide software data management solutions for the Starlab commercial space station. This venture, a collaboration involving Voyager Space, Airbus, Mitsubishi Corporation, and MDA Space, will utilize Palantir's data modeling through digital twins and AI technologies to enhance Starlab's operations. Palantir's stock saw a 1.70% increase in premarket trading, reaching $26.26.
Nvidia (NVDA, Financial) continues to dominate the market, with shares jumping nearly 4% in premarket trading. The company's stock has soared 174% in 2024, driven by the surging demand for its AI chips. Nvidia recently surpassed Microsoft and Apple to become the world's most valuable company at $3.33 trillion. Analysts at Wedbush Securities highlight Nvidia's GPUs as the "new gold or oil" in the tech sector, emphasizing the company's central role in the AI revolution.
Accenture (ACN, Financial) saw its shares rise about 8% in premarket trading after revising its revenue outlook for fiscal 2024. The company now expects revenue growth of 1.5% to 2.5% in local currency, up from the previous range of 1% to 3%. Accenture also provided a positive revenue guidance for the fourth quarter, with expected revenue between $16.05 billion and $16.65 billion, surpassing the consensus of $16.56 billion. The company's third-quarter adjusted EPS declined 2% year-over-year to $3.13, while revenue fell about 1% year-over-year to $16.5 billion.
Dell Technologies (DELL, Financial) and Super Micro Computer (SMCI, Financial) experienced a boost in premarket trading following Elon Musk's announcement that his AI startup xAI would use their servers for its supercomputer. Musk's xAI, which raised $6 billion in funding last month, aims to "understand reality" and the "true nature of the universe." This development underscores the growing demand for advanced computing solutions in the AI sector.
Netflix (NFLX, Financial) is set to launch two experiential entertainment venues in Pennsylvania and Texas next year, building on the success of its live experiences based on popular shows like Bridgerton, Stranger Things, and Squid Game. These Netflix Houses will feature immersive experiences, exclusive merchandise, and eateries, occupying over 100,000 square feet each. This move is part of Netflix's strategy to capitalize on its hit shows through live experiences and video games.
Hertz Global Holdings (HTZ, Financial) announced plans to accelerate fleet dispositions and implement new initiatives to optimize revenue and reduce annual costs. Despite these efforts, the company expects elevated vehicle depreciation to continue throughout 2024. Hertz's ability to realize equity build-up in its fleet depends on selling vehicles at prices reflecting effective economic depreciation rates.
Upstart Holdings (UPST, Financial) has entered into an agreement with Castlelake LP to sell up to $1.2 billion of consumer installment loans. This 12-month forward flow arrangement follows a 2023 agreement and aims to ensure a resilient supply of capital to expand access to affordable credit. Upstart's stock rose 0.8% in premarket trading following the announcement.
PayPal (PYPL, Financial) named Srini Venkatesan as its new CTO, effective June 24. Venkatesan, who joins from Walmart, will lead the development and implementation of technology across PayPal's ecosystem. The stock traded marginally higher by 0.52% in premarket trading on Thursday.
HEICO (HEI, Financial) declared a $0.11/share semi-annual cash dividend, a 10% increase from the prior dividend of $0.10. The dividend is payable on July 15 to shareholders of record on July 1. This announcement comes as HEICO continues to perform well in the aerospace and defense sectors.
Initial jobless claims fell by 5,000 to 238,000, slightly above the consensus of 235,000. The 4-week moving average increased to 232,750. Continuing claims also rose to 1.828 million, indicating a slight uptick in unemployment.
Housing starts dropped 5.5% month-over-month in May, significantly below the consensus of 1.373 million. Building permits also declined by 3.8% month-over-month, missing expectations. These figures reflect ongoing challenges in the housing market.
Philadelphia Fed Manufacturing Index for June came in at -1.3, below the expected +4.8. Employment and new orders also showed declines, indicating a slowdown in manufacturing activity in the region.
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