The S&P 500 futures are up 36 points (0.7% above fair value), Nasdaq 100 futures are up 158 points (0.9% above fair value), and Dow Jones Industrial Average futures are up 214 points (0.6% above fair value).
There's a positive bias in early trading after recent sharp declines. Gains in semiconductor stocks and mega cap stocks, along with bond market movements and overseas markets, are helping. Japan's Nikkei surged 10.2% after a 12% drop on Monday.
The 10-year note yield is up six basis points to 3.85%, and the 2-year note yield is up ten basis points to 3.98%.
Today's economic focus is the June Trade Balance at 8:30 ET.
In corporate news:
- Palantir Technologies (PLTR, Financial) 26.56, +2.47, +10.3%: Beat earnings by $0.01, beat revenue estimates, and guided Q3 and FY24 revenues above consensus.
- ZoomInfo (ZI) 8.42, -1.38, -14.1%: Missed earnings by $0.07, missed revenue estimates, and guided Q3 and FY24 below consensus; announced new Board members.
- CSX (CSX) 33.54, +0.54, +1.6%: Beat earnings by $0.01, reported revenue in-line.
- Avis Budget (CAR) 82.49, -1.47, -1.8%: Missed Q2 revenue estimates.
- Caterpillar (CAT) 331.00, +14.20, +4.5%: Beat earnings by $0.43, missed revenue estimates.
- Yum China (YUMC) 32.44, +2.64, +8.9%: Beat earnings by $0.08, missed revenue estimates, reiterated FY24 targets, and announced CFO resignation.
- Lucid Group (LCID, Financial) 3.34, +0.34, +11.3%: Missed earnings by $0.02, beat revenue estimates, and announced a $1.5 billion investment fund commitment.
- Uber (UBER, Financial) 61.53, +3.05, +5.2%: Beat earnings by $0.16, beat revenue estimates, and reported a 19% increase in gross bookings; guided Q3 adjusted EBITDA of $1.58-$1.68 billion.
- NVIDIA (NVDA, Financial) 103.55, +3.10, +3.1%: Bouncing back after sharp declines.
Reviewing overnight developments:
Today's News
Celsius Holdings (CELH, Financial) reported a 23.4% year-over-year increase in Q2 revenue, reaching $402 million, primarily driven by North American business. Notably, international sales surged 30% to $19.6 million, and sales to Amazon rose 41% to about $39.9 million. Gross profit as a percentage of revenue improved to 52% from 48.8% a year ago, thanks to freight optimization and lower material costs. EPS stood at $0.28, beating the $0.23 consensus, and adjusted EBITDA rose 29% to $100.4 million.
SK hynix (HXSCL) announced a tentative agreement with the U.S. Department of Commerce to receive up to $450 million in direct funding and access to potential loans of $500 million. This funding will aid in building a semiconductor packaging production base in Indiana. The company also plans to seek tax benefits equal to up to 25% of qualified capital expenditures via the Investment Tax Credit program, continuing its plans to provide AI memory products.
Palantir Technologies (PLTR, Financial) filed a prospectus for the offer and sale of various securities, including Class A common stock and debt securities. The software firm’s shares jumped over 8% premarket following stellar Q2 results, which saw revenue surge 27% year-over-year, driven by its AI platform. U.S. commercial revenue increased 55%, while government revenue grew 24%. The company also raised its FY2024 revenue forecast to $2.75 billion, surpassing the consensus of $2.74 billion.
Lucid Group (LCID, Financial) saw its stock climb nearly 6% despite mixed Q2 results, with a 33% year-over-year revenue increase. The company produced 2,110 vehicles and delivered 2,394 in the quarter, remaining on track for an annual production target of around 9,000 vehicles. CEO Peter Rawlinson highlighted technological advancements, including achieving an efficiency milestone of 5.0 miles per kilowatt-hour.
SunPower (SPWR, Financial) filed for Chapter 11 bankruptcy and entered into a stalking horse agreement with Complete Solaria (CSLR) to sell some assets for $45 million in cash. The assets include SunPower's Blue Raven Solar business, New Homes business, and non-installing Dealer network. The company aims to complete the transaction by mid to late September and continues to seek buyers for its remaining assets.
Taiwan Semiconductor (TSM, Financial) plans to raise prices for its 5nm and 3nm manufacturing process nodes in 2025 by 3% to 8%. The company manufactures chips for major firms like Nvidia (NVDA, Financial), Apple (AAPL, Financial), and AMD (AMD). Shares of Taiwan Semiconductor rose 1.8% in premarket trading on Tuesday.
Warner Bros. Discovery (WBD, Financial) decided against splitting its legacy TV networks from its streaming and movie studio business. The company had been evaluating strategic options to boost profitability but concluded that splitting would create significant operational challenges and potential lawsuits from debt investors.
Google (GOOGL, Financial) was ruled a monopolist in the search market, but this is unlikely to impact Apple (AAPL, Financial) much in the short term. Apple receives an estimated $20 billion annually from Google, and the final resolution of the ruling is years away. Analysts suggest Apple may need to institute a choice screen for its Safari browser, which could be accretive if Apple introduces its own search engine.
GlobalFoundries (GFS, Financial) reported Q2 results that beat estimates, with non-GAAP EPS at $0.38 and net revenue at $1.63 billion, despite a year-over-year decline. The company remains focused on a disciplined capex strategy and strong cash flow, with over $500 million in cumulative non-IFRS adjusted free cash flow generation in the first half of 2024. For Q3, GlobalFoundries expects net revenue between $1.7 billion and $1.75 billion.
Uber Technologies (UBER, Financial) reported a 15.9% year-over-year revenue growth to $10.7 billion, surpassing expectations. Gross bookings rose 19% to $40 billion, led by mobility gross bookings growth of 23%. The company saw adjusted EBITDA rise 71% to $1.57 billion and free cash flow improve to $1.72 billion. Uber's shares rallied in early trading.
Chinese tech firms, including Baidu (BIDU) and Huawei, are stockpiling high bandwidth memory chips from Samsung Electronics (OTCPK:SSNLF) in anticipation of new U.S. export restrictions. This has led to China accounting for about 30% of Samsung's HBM chip revenue in the first half of 2024.
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