The S&P 500 futures are up 29 points (0.5%), Nasdaq 100 futures are up 153 points (0.8%), and Dow Jones Industrial Average futures are up 154 points (0.4%).
Positive early trading is driven by gains in mega cap stocks and good earnings reports. Workday (WDAY) and Ross Stores (ROST) are seeing significant gains after impressive results and guidance.
Attention may shift with Fed Chair Powell's speech at the Jackson Hole Symposium at 10:00 ET. The S&P 500's recent gains, nearing an all-time high, were based on hopes for Fed rate cuts. Investors will be listening for confirmation of this outlook.
The 10-year Treasury note yield is down one basis point at 3.85%, and the 2-year note yield is steady at 4.01%.
Today's economic data includes the July New Home Sales report at 10:00 ET.
Today's News
Nvidia (NVDA, Financial) is set to report its fiscal second-quarter results on August 28, and Wedbush Securities has highlighted this event as potentially the "most important" for the technology sector in years. Analyst Dan Ives noted that Nvidia, led by CEO Jensen Huang, is expected to deliver another stellar performance, especially in the realm of artificial intelligence and GPUs. The company is seen as a pivotal player in AI, making its upcoming earnings crucial for market sentiment.
Bain Capital is moving forward with plans to take chipmaker Kioxia public in Japan, aiming to raise approximately $500 million. Discussions with investment banks are ongoing, and the IPO could launch within weeks. Kioxia, which specializes in NAND flash memory, is expected to achieve a market capitalization exceeding 1.5 trillion yen ($10.3 billion), making it the largest IPO in Japan this year.
Qualcomm (QCOM, Financial) has announced the acquisition of Sequans Communications' (SQNS, Financial) 4G Internet of Things technologies. This acquisition aims to enhance Qualcomm's Industrial IoT portfolio by offering low-power solutions for reliable cellular connectivity. Sequans will retain a license for the 4G IoT technology and continue to serve its IoT markets while maintaining full ownership of its 5G technology.
Steward Health Care has sued its landlord, Medical Properties Trust (MPW), claiming that the REIT is obstructing the sale of Steward's hospitals. Steward alleges that MPT's valuation of its real estate assets is hindering the sales process. The case has been brought before U.S. Bankruptcy Judge Christopher Lopez, who is expected to determine the distribution of proceeds from future hospital sales.
Chewy (CHWY, Financial) saw its stock rise after Piper Sandler upgraded the online pet retailer to an Overweight rating from Neutral. Analyst Anna Andreeva cited improvements in gross margin and operational efficiency as key factors. Piper Sandler also raised its price target on Chewy to $35 from $22, indicating optimism about the company's profitability and market trends.
Baidu (BIDU, Financial) experienced a downgrade from Bernstein, which lowered its rating to Market Perform from Outperform. Analyst Boris Van expressed concerns about the company's search business, reducing his price target to $97 from $130. Despite positive developments in Baidu's AI cloud and robotaxi initiatives, the uncertainty surrounding its search business is expected to weigh on the stock.
BP (BP, Financial) has acquired a 15% stake in a Chinese sustainable jet fuel company for approximately $49.5 million. The investment marks BP's entry into China's green aviation fuel market. The Chinese company, Zhejiang Jiaao Enprotech, is constructing a plant to produce low-carbon aviation fuel from waste cooking oil and animal fat, aiming to meet both domestic and international demand.
Alibaba Group (BABA, Financial) has received shareholder approval to upgrade its Hong Kong listing to primary status by August 28, 2024. This move is expected to attract significant investments from mainland China through the 'Stock Connect programme,' linking the Shanghai and Shenzhen bourses to the Hong Kong stock exchange. The upgrade comes as Alibaba seeks to recover from regulatory challenges and weak consumer spending.
GuruFocus Stock Analysis
- Recessionary Indicators by Freedom Holding Corp.
- Recent ASML Sell-Off Is an Excellent Opportunity to Benefit From AI Tailwinds by Akim Guerreiro
- Nvidia: Long-Term Entry Point, but Potential Short-Term Downside by Oliver Rodzianko
- CME Group Benefits From Market Volatility by Daniel Urbina
- Ford: An Unjustified Falling Knife With Turnaround Potential by Akim Guerreiro
