S&P 500 futures are down 6 points (0.1%), Nasdaq 100 futures are down 30 points (0.2%), and Dow Jones Industrial Average futures are down 20 points (0.1%).
Stocks are trading lower, but there's not much driving the decline. Investors are waiting for NVIDIA's (NVDA, Financial) earnings report later today and activity is light ahead of Labor Day.
The weekly MBA Mortgage Application Index increased by 0.5% after last week's 10.1% drop.
The yield on the 10-year note is down two basis points to 3.81%, and the yield on the 2-year note is down five basis points to 3.85%. The results of today's $70 billion 5-year note auction will be released at 1:00 p.m. ET.
Today's News
All eyes are on Nvidia (NVDA, Financial) ahead of its FQ2 2025 earnings report after the closing bell. The stock has moved an average of about 8% after earnings over the past 12 quarters. Investors are eager to hear more about its guidance and product roadmap, especially given its significant role in the AI revolution. The company has risen 159.1% since the start of the year, driven by the AI frenzy.
Warren Buffett (Trades, Portfolio)'s Berkshire Hathaway (BRK.A)(BRK.B) has continued its sell-off of Bank of America (BAC, Financial) stock, this time in a series of sales worth $982M. Berkshire has sold $5.4B worth of BofA stock since mid-July, equating to a nearly 13% interest in the bank. Despite this, Berkshire still holds a significant stake in BofA with 903.9M shares. Earlier this month, Berkshire also disclosed a reduction in its Apple (AAPL, Financial) stake.
Early reviews are starting to pour in on McDonald's (MCD, Financial) new Big Arch hamburger, debuting in Canada and Portugal. The Big Arch is larger than the traditional Big Mac and features two beef patties, three squares of white cheddar cheese, a tangy sauce, and crispy onions on a toasted sesame and poppy seed bun. The Big Arch is being set up to be a permanent menu item, pending the outcome of the test runs in these countries.
Abercrombie & Fitch (ANF, Financial) shares slumped 9% in pre-market trading despite delivering a Q2 comparable sales growth of 18% and raising its full-year net sales growth guidance. The retailer expects its Abercrombie brands to continue to outperform Hollister brands, with Abercrombie brands achieving a growth of 26% and Hollister accelerating to a growth of 17%.
Meta Platforms (META, Financial) will close its augmented reality studio, Meta Spark, to focus investments in other areas, including its growing AI business. The AR effects built by third parties will no longer be available starting January 14, 2025. Meta is shifting resources to next-generation experiences, including new form factors like glasses.
Foot Locker (FL, Financial) swung to a loss in the second quarter and announced it was closing stores in Asia and Europe. Despite better-than-expected sales, the company issued lackluster sales guidance for FY24. The stock dropped over 8% in premarket trading as the company plans to close 30 of its 140 stores in Asia Pacific and 629 stores in Europe.
Neurocrine Biosciences (NBIX, Financial) reported that its experimental oral drug for schizophrenia met the primary goal in a mid-stage study. Despite the positive data, shares fell 17% premarket as investors were disappointed that the results did not match up to a rival candidate from Bristol Myers Squibb (BMY), which could win U.S. approval next month.
Kohl's (KSS, Financial) guided higher profit for the full year but forecast a greater sales decline and reported mixed results for the second quarter. Shares were up 4% in premarket trading. The department store chain expects 2024 earnings per share in the range of $1.75 to $2.25, above the consensus estimate of $1.49.
GuruFocus Stock Analysis
- Why Nu Holdings Still Has Room to Run by Muslim Farooque
- Will Nvidia Continue to Dominate? by Yiannis Zourmpanos
- Salesforce Is a Resilient CRM Leader With Strong Growth and an Attractive Valuation by Lucas Wong
- Apple's High Valuation: A Bull Trap in the Making? by Sheraden Frances
- Harris, Trump and the Future of Corporate Taxes by John Dorfman
