The S&P 500 futures are down 29 points, trading 0.6% lower. The Nasdaq 100 futures are down 128 points, trading 0.7% lower, and the Dow Jones Industrial Average futures are down 210 points, trading 0.6% lower.
There's a negative mood on the first trading day of the shortened week. Losses in big tech stocks are contributing to this trend. However, this could change with the release of some economic data this morning.
Key economic reports to watch are the ISM Manufacturing Index for August at 10:00 ET and Construction Spending for July. The final S&P Global U.S. Manufacturing PMI for August will be released at 9:45 ET.
The 10-year Treasury note yield remains at 3.91%, and the 2-year note yield is steady at 3.93%.
In company news:
Today's News
Apple (AAPL, Financial) is set to transition all iPhone models to organic light-emitting diode (OLED) displays by 2025, phasing out liquid crystal displays (LCDs). This move will exclude Japanese suppliers Japan Display (JDI) and Sharp from Apple's supply chain. The shift to OLED is driven by their superior color quality. Orders for OLED displays have already been placed with China's BOE Technology and South Korea's LG Display.
Novo Nordisk (NVO, Financial) experienced a 0.6% dip in pre-market trading after announcing that supply shortages for its diabetes drug Ozempic are expected to continue into the fourth quarter of 2024. The shortages are attributed to increased demand and manufacturing capacity constraints. The company has temporarily shifted production capacity from its other diabetes drug, Victoza, to meet Ozempic demand, but intermittent shortages persist.
Transocean (RIG, Financial) disclosed agreements to sell two of its drilling rigs, Development Driller III and Discoverer Inspiration, for a total of $342 million. This sale is part of Transocean's strategy to dispose of non-strategic assets. The company anticipates a non-cash charge of $630 million to $645 million in Q3 due to asset impairment.
Deutsche Bank downgraded JPMorgan Chase (JPM, Financial) to Hold from Buy, citing less upside potential after the stock's strong performance year-to-date. Conversely, Bank of America (BAC, Financial) and Wells Fargo (WFC, Financial) were upgraded to Buy from Hold, highlighting new opportunities in the banking sector. JPMorgan's stock buyback plans were also deemed unattractive at the current valuation levels.
Tesla (TSLA, Financial) announced it will unveil its new Robotaxi on October 10 at Warner Bros. Studio in Burbank, California. The event was delayed from its original date in August due to design changes. The Robotaxi is part of Tesla's push into autonomous mass-market vehicles.
Unity Software (U, Financial) saw a 4% rise in shares after Morgan Stanley upgraded the stock to Overweight from Equal-weight. The upgrade reflects increased confidence in Unity's Create game engine business, which holds a 70% market share in mobile gaming. Analyst Matthew Cost believes the company's growth expectations are achievable despite competition.
Vaxcyte (PCVX, Financial) shares surged ~32% in premarket trading after announcing positive Phase 1/2 trial results for its experimental pneumococcal conjugate vaccine, VAX-31. The vaccine showed a safety profile similar to Pfizer’s (PFE) Prevnar 20 and demonstrated strong immune responses. Vaxcyte plans to advance VAX-31 into a Phase 3 program.
DraftKings (DKNG, Financial) aims to close the market share gap with FanDuel (FLUT) as the NFL season kicks off. In July, DraftKings held a 34% share of the online sports betting market. The company is focusing on increasing its market share through strategic initiatives and app downloads.
Merck (MRK, Financial) announced that the European Commission approved its therapy Keytruda in combination with Pfizer's (PFE) Padcev for first-line treatment of a type of bladder cancer. This approval marks Keytruda's third indication for bladder cancer in the EU and its 28th overall.
Intel (INTC, Financial) is partnering with Japan's national research institute to build a research and development center for semiconductor technology. The facility will focus on extreme ultraviolet lithography and is expected to be operational in three to five years. Companies will pay fees to access the facility for prototyping and testing.
