The S&P 500 futures are up three points (0.1%), Nasdaq 100 futures are up 28 points (0.2%), and Dow Jones Industrial Average futures are up 33 points (0.1%). There is an overall positive sentiment ahead of this afternoon's FOMC policy decision at 2:00 ET, where the committee is anticipated to lower rates for the first time since March 2020. Gains in some large-cap stocks are helping the market climb.
Treasury yields are rising before the September FOMC Statement. The 10-year yield is up three basis points to 3.67%, and the 2-year yield is also up three basis points to 3.62%.
The weekly MBA Mortgage Applications Index saw a 14.2% increase, with refinance applications up 24% and purchase applications up 5%. Other data to watch today:
Today's News
Microsoft (MSFT, Financial) was in the spotlight as Mizuho Securities reiterated its Outperform rating and $480 price target on the tech giant after the company announced a 10.7% hike to its quarterly dividend and a new $60B buyback program. Shares rose 0.4% in premarket trading on Wednesday. The $60B buyback is the same amount as the company announced three years ago, and the cadence of the share repurchase program is unlikely to be changed going forward. Mizuho analyst Gregg Moskowitz emphasized Microsoft's revenue growth opportunities, particularly in generative artificial intelligence.
Arm Holdings (ARM, Financial), Broadcom (AVGO, Financial), and Nvidia (NVDA, Financial) were highlighted as research firm William Blair initiated coverage on all three with an Outperform rating. Arm is seen as a "critical vendor" of computing intellectual property with "best-in-class" financials. The company generates revenue from over 29 billion chips sold across various markets, with a robust royalty/licensing revenue model driving profitability. Broadcom and Nvidia also received positive outlooks, though shares of all three were little changed in premarket trading.
Under the new leadership of CEO Bracken Darrell, V.F. Corporation (VFC, Financial) has made significant improvements including new executive leadership, production innovation, and cost optimization. Barclays upgraded V.F. Corp to Overweight and increased its price target by 16% to $22, citing these changes as the beginning of a multi-year turnaround for the company.
Barrick Gold (GOLD, Financial) announced it has suspended operations at its Porgera gold mine in Papua New Guinea due to tribal violence that resulted in at least 20 deaths, including two employees. The government is attempting to restore order in the region. Porgera is the second-largest mine in Papua New Guinea and one of the world's top 10 producing gold mines.
Google (GOOG, GOOGL) won a court challenge against a €1.5 billion European Union antitrust fine imposed five years ago. The General Court upheld the majority of the Commission’s findings but annulled the fine, stating errors in the assessment of the duration and market coverage of the clauses in question.
MicroStrategy (MSTR, Financial) announced it has priced its offering of $875 million aggregate principal amount of 0.625% convertible senior notes due 2028. The notes will be unsecured, senior obligations of the company, and will bear interest at 0.625% per annum. The offering was upsized from the previously announced $700 million aggregate principal amount of notes.
Organon (OGN, Financial) said it will acquire Dermavant, a Roivant (ROIV, Financial) company, for $1.2 billion. The consideration includes an upfront payment of $175 million and a $75 million milestone payment upon regulatory approval, along with additional payments for commercial milestones and tiered royalties on net sales.
Applied Therapeutics (APLT, Financial) shares climbed ~43% in premarket trading after the U.S. FDA decided not to hold an advisory committee meeting regarding the company's marketing application for its lead asset, govorestat. The new drug application is currently under priority review for a rare metabolic condition called classic galactosemia, with a target action date of November 28, 2024.
Elon Musk-owned neurotechnology firm Neuralink received the U.S. FDA’s breakthrough device designation for its experimental brain implant, Blindsight, designed to restore vision. The designation aims to speed up the development and review of innovative medical devices, potentially accelerating market access for Neuralink's products.
Housing starts jumped 9.6% month-over-month in August to 1.356 million, surpassing the 1.300 million consensus. Single-family housing starts increased 15.8% to 992K, while building permits rose 4.9% month-over-month to 1.475 million. Privately owned housing completions also saw a significant increase, up 9.2% month-over-month and 30.2% year-over-year.
Iron ore futures fell by the most in nearly two years due to prospects of stronger global supply and weakening Chinese steel demand. The most-traded January iron ore contract on China's Dalian Commodity Exchange ended daytime trading down 4.1%, its biggest daily decline since October 2022.
GuruFocus Stock Analysis
- Meta Platforms: A Wonderful Company Trading at a Fair Price by Blue Chip Portfolios
- Assessing Axon's Growth Potential and Competitive Advantages by Renato Neves
- Trader in France Scores 3rd Victory in Short Selling Contest by John Dorfman
- Ferrari: A High-Performance Business With a Premium Valuation Challenge by Kenio Fontes
- PDD Is Currently a High-Growth Value Opportunity by Oliver Rodzianko
