The S&P 500 futures are down 40 points, the Nasdaq 100 futures have decreased by 200 points, and the Dow Jones Industrial Average futures are down 58 points, indicating a lower market opening. Technology stocks are experiencing pre-open losses, contributing to a downward trend. Rising market rates are also a concern, with the 10-year yield at 4.77% and the 2-year yield at 4.40%, showing little change from last week.
JP Morgan (JPM) CEO Jamie Dimon expressed a "cautiously pessimistic" view on the U.S. economy, adding to the negative market sentiment.
Today's economic schedule includes the release of the December Treasury Budget at 14:00 ET.
Today's News
Nvidia (NVDA, Financial) has voiced strong opposition against the Biden administration's new export restrictions on AI technology, arguing that the "AI Diffusion" rule will hinder AI progress globally and stifle innovation. The rule aims to control exports of high-end processors, potentially affecting Nvidia's market. Nvidia shares dropped about 3% in premarket trading following these developments.
MicroStrategy (MSTR, Financial) continues to make headlines as Cantor analyst Brett Knoblauch raised the stock's price target to $613, highlighting the company's strategy of accumulating Bitcoin. Despite the recent slump in Bitcoin's value, MicroStrategy's stock has room to grow, supported by its ability to raise significant capital.
Moderna (MRNA, Financial) shares plunged 20% in premarket trading after the company revised its 2025 revenue forecast downwards due to decreased demand for its Covid and RSV vaccines. Moderna now expects $1.5B to $2.5B in revenue, a significant drop from its earlier estimate. The company is also expanding cost-cutting measures to mitigate the impact.
Johnson & Johnson (JNJ, Financial) has announced its acquisition of Intra-Cellular Therapies (ITCI, Financial) for $132 per share in cash, totaling approximately $14.6B. This acquisition is set to enhance J&J’s neuroscience portfolio, adding promising therapeutics for central nervous system disorders to its offerings.
Broadcom (AVGO, Financial) is under scrutiny as new U.S. export controls on AI processors could impact its business with ByteDance, a major customer. Despite potential revenue risks, Citi maintains a Buy rating on Broadcom, citing expected growth in other AI areas.
Gorilla Technology (GRRR, Financial) has increased its stock buyback program to $10 million amid ongoing SEC investigations into alleged stock manipulation. The company remains focused on its financial health and strategic priorities, with shares rising over 8% in premarket trading.
Allegro MicroSystems (ALGM, Financial) has been named Needham's Top Pick for 2025, reflecting optimism about the semiconductor sector's performance, particularly in AI-driven markets. Allegro's strong outlook contrasts with challenges faced by other sectors like PCs and smartphones.
GuruFocus Stock Analysis
- Broadcom's AI Boom: Citi Sets $220 Target as Revenue and Dividends Soar by Khac Phu Nguyen
- Private Equity-Backed Re.green Expands with Landmark Amazon Restoration Project by Nauman khan
- Apple Falls to Second Place Globally as Samsung's S24 Dominates Smartphone Market by Muslim Farooque
- MicroStrategy's Additional $243M Bitcoin Bet: Is This the Boldest Crypto Move Yet? by Khac Phu Nguyen
- Nvidia Shares Dip on U.S. AI Export Restrictions and HSBC Price Target Cut by Nauman khan
