The S&P 500 futures are down six points, the Nasdaq 100 futures are down ten points, and the Dow Jones Industrial Average futures are down 11 points.
Equity futures are mostly flat. Investors are waiting for NVIDIA's (NVDA, Financial) earnings report tomorrow afternoon and ahead of Labor Day. Today's economic updates include the August Consumer Confidence Index at 10:00 ET, along with the June FHFA Housing Price Index and June S&P Case-Shiller Home Price Index at 9:00 ET.
The 10-year note yield is up three basis points to 3.85%, and the 2-year note yield is at 2.95%, which is two basis points higher than yesterday.
The Asian markets ended mixed on Tuesday. Japan's Nikkei rose 0.5%, Hong Kong's Hang Seng gained 0.4%, while China's Shanghai Composite fell 0.2%. India's Sensex remained unchanged, South Korea's Kospi dropped 0.3%, and Australia's ASX All Ordinaries decreased by 0.2%.
Major European indices are showing modest gains. STOXX Europe 600 is unchanged, Germany's DAX is up 0.2%, U.K.'s FTSE 100 is up 0.3%, France's CAC 40 is unchanged, Italy's FTSE MIB increased by 0.5%, and Spain's IBEX 35 is up 0.3%.
Germany’s economic data shows Q2 GDP at -0.1% qtr/qtr, as expected, and 0.0% yr/yr. September GfK Consumer Climate is at -22.0. The U.K.'s August CBI Distributive Trades Survey stands at -27.
In U.K. news, Prime Minister Starmer acknowledged a GBP22 billion budget gap and said the Autumn budget would be painful.
Apple (AAPL, Financial) announced that CFO Luca Maestri will transition from his role, naming Kevan Parekh as the new CFO.
HEICO (HEI, Financial) reported better-than-expected earnings by $0.05, with revenues in line with forecasts.
CAVA Group (CAVA, Financial) saw a proposed sale of 6,000,000 shares filed by Artal International S.C.A.
Amazon (AMZN, Financial) is planning to introduce a delayed Alexa subscription for artificial intelligence in October.
JD.com (JD, Financial) announced a new $5.0 billion share repurchase program.
Today's News
Meta (META, Financial) CEO Mark Zuckerberg has admitted that the Biden administration pressured the company to censor certain COVID-19 content, including humor and satire. In a letter to Rep. Jim Jordan, Zuckerberg expressed regret for not pushing back against these demands and emphasized that Meta would no longer compromise its content standards due to government pressure. He stressed the importance of maintaining the company's content standards without yielding to any administration's influence.
Investors are eagerly awaiting Nvidia's (NVDA, Financial) earnings report, which is expected to be released after the market closes on Wednesday. Given the current artificial intelligence frenzy and Nvidia's significant influence on the S&P 500, the chipmaker's results are anticipated to be a market-moving event. The mixed performance of major market averages on Monday was driven by a reversal in tech stocks, with the Nasdaq and the Mag-7 giving up most of their Friday gains.
Cannabis-related stocks, including Canopy Growth (CGC, Financial), Tilray (TLRY, Financial), Aurora Cannabis (ACB, Financial), and SNDL Inc. (SNDL, Financial), are under scrutiny after the Drug Enforcement Administration (DEA) scheduled a public hearing to discuss the U.S. Justice Department’s proposal to reclassify marijuana as a less dangerous drug. The hearing, set for December 2, extends the administrative process, with cannabis stocks trading lower in the premarket.
Citi analysts have weighed in on the potential legal ramifications for CrowdStrike (CRWD, Financial) following a recent outage, ahead of the company's earnings on Wednesday. The analysts believe that CrowdStrike's financial obligations are likely to be contained through contract law provisions, despite Delta Air Lines (DAL, Financial) alleging that the cybersecurity company was responsible for extended flight disruptions. Delta's ability to identify contract loopholes remains a significant uncertainty.
Lowe's (LOW, Financial) has decided to scale back its diversity, equity, and inclusion programs following online criticism. The home improvement retailer will no longer participate in the Human Rights Campaign's Corporate Equality Index and will consolidate its diverse employee resource groups into one organization. Conservative activist Robby Starbuck claimed credit for the move, stating that he had planned to expose the company's policies.
Pfizer (PFE, Financial) has launched a new website, PfizerForAll, offering vaccines, medical tests, and medications delivered at home. The platform is designed for patients with migraine, COVID-19, or flu, and adults seeking vaccines for preventable diseases. PfizerForAll provides end-to-end services, including same-day appointments, booking vaccines, and at-home delivery of tests and medications. Pfizer plans to expand the platform to address a broader range of needs and conditions.
Hertz Global Holdings (HTZ, Financial) has expanded its board of directors to 11 members, adding Frank Blake and Lucy Clark Dougherty. Blake is the retired chairman and CEO of The Home Depot (HD) and has held various high-profile roles, while Clark Dougherty is the senior vice president and general counsel of Polaris Inc. (PII). The new board members join Hertz as the company continues to navigate the evolving car rental industry.
The Bank of Nova Scotia (BNS, Financial), also known as Scotiabank, reported better-than-expected fiscal Q3 earnings, driven by increased net interest income. The bank's Canadian Banking and Global Wealth Management units saw adjusted net income rise both quarter-over-quarter and year-over-year. Despite a drop in average deposits, Scotiabank's performance was supported by strong operating momentum across its diversified businesses.
Eli Lilly (LLY, Financial) has reduced the prices of the two lowest doses of its weight loss medication Zepbound on its telehealth platform, LillyDirect. The new pricing aims to meet the high demand for obesity treatments and broaden access for patients. However, the low-cost versions marketed on LLY’s self-pay channel will not be covered by insurance, providing a transparent price by removing third-party supply chain entities.
PDD Holdings (PDD, Financial) saw its stock dip below the $100 level after a significant drop on Monday. The Chinese e-commerce firm missed consensus revenue estimates with its Q2 earnings report and warned of revenue growth pressure in the upcoming quarters. The company cited challenges from changing consumer demand, intensifying competition, and global uncertainties as key factors impacting its outlook.
Apple (AAPL, Financial) is set to unveil its latest iPhone and several other products on September 9. Investment firm Wedbush Securities believes the new iPhone may usher in a "renaissance of growth" for the tech giant. Analyst Dan Ives noted that initial iPhone 16 shipments are expected to exceed 90 million, driven by strong indications from the Asia supply chain. This upgrade cycle could set the stage for a super cycle, with an estimated 300 million iPhones globally due for an upgrade.
Morgan Stanley has maintained its Overweight rating on Coca-Cola Company (KO, Financial), calling it a top pick despite the 2024 share price rally. The firm highlighted Coca-Cola's strong fundamentals and its ability to post above-consensus and above-peer long-term organic sales growth. Morgan Stanley raised its price target on KO to $78, citing strong international trends and higher exposure as key factors driving the company's performance.
Trip.com (TCOM, Financial) shares surged over 10% following the release of its Q2 results, despite a mixed performance. The company reported a 14% year-over-year increase in revenue, with non-GAAP net income and adjusted EBITDA margin showing significant improvement. Trip.com's domestic and international businesses demonstrated consistent growth, with accommodation bookings and outbound hotel and air reservations recovering to pre-COVID levels.
Bank of Montreal (BMO, Financial) saw its stock dip 2.5% in premarket trading after reporting fiscal Q3 earnings that fell short of analyst estimates. The bank's provision for credit losses increased, impacting its performance. Despite the cyclical increase in credit costs, BMO's performance was supported by operating momentum across its diversified businesses, including revenue growth in Canadian Personal and Commercial Banking.
BHP (BHP, Financial) reported a 2% increase in full-year underlying profit, driven by record iron ore production and resilient prices. However, the company's net profit fell 39% year-over-year due to exceptional losses linked to the closure of the Western Australia Nickel mine and charges related to the 2015 Mariana dam disaster. BHP's performance was supported by strong demand for copper, driven by Chinese renewable energy projects.
Sony (SONY, Financial) is reportedly increasing the price of its PlayStation 5 gaming console in Japan by approximately 20%, citing a challenging global macroeconomic backdrop. The price hike comes as the company reported a decline in PlayStation 5 sales in the first quarter, missing analyst expectations. The increased cost is expected to impact consumer demand for the gaming console.
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