The S&P 500 futures are down 2 points, showing a 0.1% decrease. Nasdaq 100 futures have fallen 35 points, a decline of 0.2%. On the other hand, Dow Jones Industrial Average futures have risen by 25 points, marking a 0.1% increase.
Early trading indicates a slight dip for the S&P 500 and Nasdaq 100, while Dow futures are seeing a rise. Today, NVIDIA (NVDA, Financial) and Sherwin-Williams (SHW, Financial) are joining the Dow Jones replacing Intel (INTC, Financial) and Dow Inc. (DOW, Financial).
Treasury yields are slightly down, with the 10-year yield decreasing by four points to 4.30% and the 2-year yield dropping by three points to 4.19%.
The only U.S. economic report scheduled for today is the preliminary November University of Michigan Consumer Sentiment survey at 10:00 ET.
In other news, China announced plans to allocate $1.4 trillion over the next five years to aid local government debt, though no measures to boost consumption were revealed, which disappointed market expectations.
Today's News
Lucid Group (LCID, Financial) saw its stock rise after reporting a 45% increase in Q3 revenue to $200.4 million, alongside a reduced quarterly loss. The electric vehicle maker produced 1,805 vehicles and delivered 2,781 units during the quarter. The company is transitioning its manufacturing processes to be fully on-site at its Arizona factory, which is expected to improve efficiency and reduce costs. CEO Peter Rawlinson highlighted the quarter as a significant milestone for the company.
Taiwan Semiconductor (TSM, Financial) will cease building advanced AI processors for Chinese companies starting next week, aligning with U.S. efforts to limit China's tech advancements. This decision affects process nodes of 7 nanometers or smaller and could impact companies like Baidu. The move is part of TSM's strategy to enhance internal controls and preempt future U.S. export restrictions.
Unity Software (U) experienced an 8% drop in shares despite surpassing Q3 performance expectations and raising its full-year outlook. The company reported a quarterly loss of $0.31 per share with revenue down 18% year-over-year to $446.52 million. The decline was attributed to a portfolio reset and weaker Grow Solutions revenue. Unity's strategic portfolio, however, showed promise, leading to an optimistic revised guidance for the year.
Medical Properties Trust (MPW) announced an agreement to sell the majority of Prospect’s managed care platform to Astrana Health (ASTH) for approximately $745 million. The deal, expected to close by mid-2025, will be funded through cash and a bridge commitment from Truist Bank and J.P. Morgan. Astrana plans to invest significantly in Prospect to improve healthcare access and quality.
Nvidia (NVDA, Financial) appointed Ellen Ochoa, former NASA Johnson Space Center director, to its board of directors. Ochoa, the first Latina astronaut, is expected to contribute her leadership experience to Nvidia's ongoing development in computing and AI. Nvidia shares saw a slight increase in premarket trading following the announcement.
Tesla (TSLA, Financial) introduced a leasing option for its Cybertruck, starting at $999 per month with a $7,500 down payment for a three-year term. This move comes after Tesla cleared much of its order backlog for the model, which has faced production delays since its 2019 introduction. The Cybertruck is now Tesla's third-highest selling model.
Rivian Automotive (RIVN, Financial) is under scrutiny after missing Q3 revenue estimates due to a challenging consumer environment and supply chain issues. Despite positive developments with Volkswagen and Amazon, Bank of America downgraded Rivian to Neutral from Buy, citing concerns over the company's reliance on regulatory credits for margin improvements.
Amazon (AMZN, Financial) is considering a second investment in AI startup Anthropic, potentially amounting to several billion dollars. This investment could require Anthropic to utilize Amazon's AI chips. Amazon has already invested $4 billion in Anthropic, which traditionally uses Nvidia's chips. The move aligns with Amazon's strategy to bolster its AI capabilities.
Prospect Capital (PSEC, Financial) shares fell 6.8% after the company cut its distribution by 25% as part of a strategy shift towards first lien senior secured loans. Despite topping Q1 earnings estimates, the reduction reflects a focus on rotating away from CLO equity and real estate investments.
CVR Energy (CVI, Financial) and Icahn Enterprises (IEP) saw contrasting pre-market movements after Icahn confirmed plans to increase its stake in CVR Energy by more than 20%. IEP will fund this acquisition by reducing its quarterly distribution, marking its second cut in 15 months. IEP's stake in CVR could rise to 81.3% if the tender offer is successful.
Bloom Energy (BE, Financial) reported a surprise Q3 adjusted loss with a 17% drop in revenues to $330 million. Despite this, the company maintained its full-year guidance and announced plans for the world's largest single-site fuel cell installation in South Korea. Bloom also received follow-on orders from Taiwan's Quanta Computer, signaling potential growth.
Bank of America (BAC, Financial) received an upgrade from Citi to Buy, with expectations of valuation convergence with JPMorgan Chase. Analysts anticipate BAC's net interest margin to expand, driven by swap maturities and fixed-rate assets, providing an attractive risk/reward profile.
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