The S&P 500 futures are up nine points, the Nasdaq 100 futures are up 20 points, and the Dow Jones Industrial Average futures are up 65 points.
There's a positive trend in early trading. Earnings results from Target (TGT, Financial) and TJX (TJX) have contributed to this upward movement. Participants are waiting for the benchmark revisions to nonfarm payrolls (April 2023-March 2024) at 10:00 a.m. ET, the $16 billion 20-year bond auction at 1:00 p.m. ET, and the release of the Minutes for the July 30-31 FOMC meeting at 2:00 p.m. ET.
The 10-year note yield is down one basis point to 3.81%, and the 2-year note yield is down two basis points to 3.98%.
Commodity futures are mostly higher. WTI crude oil futures are up 0.1% to $73.27 per barrel, natural gas futures are up 1.1% to $2.22 per MMBtu, and copper futures are up 0.9% to $4.20 per pound.
Today's News
Ford Motor Company (F, Financial) announced on Wednesday that it is taking additional steps to enhance its electric vehicle (EV) business. The new strategy includes offering a range of electrification options to accelerate customer adoption, focusing on lower prices and longer ranges. Ford will prioritize a new digitally advanced commercial van in 2026, followed by two advanced pickup trucks in 2027. Additionally, the company is realigning its U.S. battery sourcing plan to reduce costs and support future EV production. However, Ford is delaying its new plant in Tennessee and canceling plans for a three-row electric SUV.
Target (TGT, Financial) saw a significant 14% gain in early trading on Wednesday after posting stronger-than-expected Q2 results. The company reversed a year-long trend of negative comparable sales, with a 2% increase in Q2. CEO Brian Cornell highlighted that the digital business was boosted by the Target Circle program and drive-up initiatives. The apparel category also stood out during the quarter. Analysts noted that Target's execution amid a challenging retail environment was commendable, with the company providing better-than-expected full-year guidance.
Enterprise Product Partners (EPD, Financial) announced an agreement to acquire Piñon Midstream for $950M in cash. Piñon Midstream's assets include extensive natural gas gathering and treating facilities in the Delaware Basin. The acquisition is expected to accelerate Enterprise's entry into the region by several years and complement its existing midstream energy system.
Warner Bros. Discovery (WBD, Financial) plans to invest up to $8.5B in a new studio in Las Vegas, contingent on the expansion of Nevada's film tax credit program. The company aims to produce movies and TV shows at the new facility, extending its collaboration with the University of Nevada, Las Vegas. Warner Bros. Studios Nevada is expected to operate under a new name if the tax credit program is expanded.
Arch Resources (ARCH, Financial) and Consol Energy (CEIX, Financial) announced a merger to create Core Natural Resources. The all-stock deal will see Arch stockholders receiving 1.326 shares of Consol for each share of Arch. The combined entity will own 11 mines and have a market capitalization of approximately $5.2B. The merger is expected to create one of the largest and most cost-efficient coal mining companies in North America.
Sibanye Stillwater (SBSW, Financial) finalized a 1.8B South African rand (~$101M) gold prepayment deal to raise cash for loan repayments. The company will deliver gold in monthly tranches from October 2024 to November 2026. Sibanye also refinanced and increased its revolving credit facility to 6B rand, extending its maturity to August 2027.
Tesla (TSLA, Financial) is recalling 9,136 Model X vehicles to address potential issues with roof trim adhesion. The National Highway Traffic Safety Administration (NHTSA) indicated that the roof trim pieces might separate from the vehicle, increasing the risk of a crash. Tesla will test and reattach the trim pieces as necessary, free of charge.
Macy’s (M, Financial) adjusted its sales outlook for the remainder of the year due to a cautious consumer environment and increased promotional activities. The company now expects sales between $22.1B to $22.4B, down from the earlier guidance of $22.3B to $22.9B. Despite the challenging conditions, Macy’s delivered strong earnings performance in Q2.
Walmart (WMT, Financial) has sold its nearly 10% stake in JD.com (JD, Financial), sending the Chinese e-commerce firm's shares down 6.7%. Walmart stated that the decision allows it to focus on its China operations and other priorities. JD.com conducted a $390M stock buyback, fully utilizing its $3B share repurchase program.
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