US index futures were mixed in Thursday’s pre-market as
investors approached the final days of trading in a challenging
month and quarter economically and financially.
At 7:05 AM, Dow Jones futures rose 35 points, or 0.10%. S&P
500 futures were up 0.06%, while Nasdaq-100 futures fell 0.10%. The
yield on 10-year Treasury bonds stood at 4.643%.
In the commodities market, West Texas Intermediate crude oil for
November dropped 0.14% to $93.55 per barrel, while Brent crude for
November fell 0.26% to nearly $96.32 per barrel. Meanwhile, iron
ore with 62% concentration on China’s Dalian Commodity Exchange
(DCE) rose 0.89% to $116.66 per ton.
On Thursday’s economic calendar, investors awaited the release
of final second-quarter GDP data and jobless claims at 8:30 AM.
Pending home sales figures will be revealed at 10:00 AM. One of the
most anticipated events of the day will be at 4:00 PM when Federal
Reserve Chairman Jerome Powell participates in an event with
educators, while Federal Reserve Bank of Richmond President Tom
Barkin and Federal Reserve Bank of Chicago President Austan
Goolsbee deliver speeches.
Moreover, Wall Street is closely monitoring developments in
Washington as lawmakers continue their discussions on U.S. spending
legislation. Failure to reach an agreement by the end of this week
could result in a government shutdown.
Asian markets closed with mixed results, with Japan leading the
declines due to rising government bond yields. Investor confidence
in the Chinese real estate sector weakened in Hong Kong after China
Evergrande’s shares were suspended. Markets in South Korea were
closed, while Australian stocks ended lower due to losses in gold
and banking stocks. China’s Shanghai Composite closed with a small
gain of 0.10%, with investors exercising caution, possibly due to
the Golden Week holiday in China and expectations of the country’s
Purchasing Managers’ Index (PMI) data release over the weekend.
At Wednesday’s close, the Dow Jones fell 68.61 points or
0.20% to a new three-month closing low of 33,550.27
points. The S&P 500 rose 0.98 points or 0.02% to
4,274.51. The Nasdaq Composite rose 29.24 points or 0.22% to
13,092.85. Global markets faced high volatility, influenced by
the possibility of a shutdown in the USA, problems with the
Evergrande Group and rising interest rates. The volatility of
securities and the increase in oil prices also had an impact,
highlighting a scenario of uncertainty and economic tensions.
Ahead of Thursday’s corporate earnings, investors will be
watching, before the market opens, reports from Accenture
(NYSE:ACN), Carmax (NYSE:KMX) and Jabil (NYSE:JBL). After the
close, quarterly results are expected from Nike (NYSE:NKE),
Blackberry (NYSE:BB) and Vail Resorts (NYSE:MTN).
Wall Street Corporate Highlights for Today
Apple (NASDAQ:AAPL) – iPhone 15 Pro and
Pro Max users are reporting overheating on Apple’s new
devices. The complaints are diverse, and the company has not
yet officially commented. Additionally, Google Pixel is
challenging iPhone’s dominance in Japan, capturing 12% of the
market as iPhones become more expensive. Japan is a vital
market for mobile software and games. The falling yen is
impacting the price of the iPhone, benefiting the Pixel, and
changes to mobile carrier subsidies are influencing consumer
choices.
Meta Platforms (NASDAQ:META) – Mark Zuckerberg,
CEO of Meta Platforms, introduced new AI products, including bots,
smart glasses and an updated virtual reality headset, aimed at
integrating AI into consumers’ everyday lives. The glasses,
released on October 17, cost $299 and can live stream to social
media. These innovations reflect Zuckerberg’s continued focus
on artificial intelligence and mixed reality to power the company’s
metaverse, despite the significant expenses involved. In other
news, Alexis Black Bjorlin, Meta’s vice president of
infrastructure, will step down at the end of the
month. Bjorlin led the team responsible for designing custom
AI chips, and Yee Jiun Song will take over the
role. Furthermore, SEC is finalizing agreements with about 24
Wall Street firms to resolve investigations into record-keeping
failures. These settlements, marking the SEC’s latest
enforcement action against the use of WhatsApp and other messaging
apps not authorized by Wall Street, would carry fines and
commitments to correct wrongdoing.
Snap Inc (NYSE:SNAP) – Snap Inc is closing
its enterprise-facing augmented reality (AR) division, resulting in
170 layoffs, as it struggles in a challenging economic climate and
reduced advertising spending. Launched in March, the service
sought to diversify the company’s revenue, which was predominantly
dependent on advertising. CEO Evan Spiegel cited the need to
focus on core advertising businesses and face competition from
generative artificial intelligence as reasons for the closure.
Micron Technology (NASDAQ:MU) – Micron
projected a larger-than-expected loss for the first quarter,
sending its shares down 5.0% in Thursday’s pre-market
trading. Despite this, it is increasing the production of new
products and aims to become a supplier
to Nvidia (NASDAQ:NVDA). Micron
anticipates a loss of US$1.07 per share, contrasting with the
expectation of 95 cents by analysts surveyed by LSEG. For the
fiscal fourth quarter, Micron reported revenue of $4.01 billion, a
40% drop from the year-ago quarter, with an adjusted loss of $1.07
per share and a loss under accounting principles generally accepted
values of $1.31 per share. Investors who hoped that advances
in AI would help Micron mitigate short-term losses had their
expectations dashed. CEO, Sanjay Mehrotra, indicates that
revenue will begin to grow in early 2024, with expectations of a
significant recovery at the end of the year.
Johnson Controls International (NYSE:JCI)
– Johnson Controls faced a cybersecurity incident, disrupting
operations and possibly affecting profits. The company is
investigating the incident and has reported disruptions to its IT
infrastructure, although many applications remain
operational. The company is still evaluating the impact on
financial results.
Disney (NYSE:DIS), Warner
Bros
Discovery (NASDAQ:WBD), Paramount
Global (NASDAQ:PARA), Netflix (NASDAQ:NFLX)
– Hollywood studios and striking actors will negotiate on October
2, after months without dialogue. The SAG-AFTRA union, with
160,000 members, demands higher wages and limits on the use of AI,
in addition to other measures aimed at equity and fair
compensation, especially on streaming platforms.
Sony (NYSE:SONY) – Sony Group announced
the retirement of gaming chief Jim Ryan in March, with Hiroki
Totoki taking over on an interim basis. Ryan, CEO of Sony
Interactive Entertainment since 2019, led the launch of the
PlayStation 5. Its successor will face challenges such as expanding
into PC and smartphone gaming and adapting to changes in the gaming
industry.
Berkshire
Hathaway (NYSE:BRK.B), HP
Inc (NYSE:HPQ) – Berkshire Hathaway reduced its stake
in HP Inc, selling 4.6 million units, approximately $118
million. The move follows continued reductions in the
company’s shareholding in September. There is speculation that
Berkshire may continue to sell its HP shares, with the sales
reflecting recent challenges faced by HP, including reductions in
earnings expectations.
Jefferies Financial (NYSE:JEF) – The bank
reported fiscal third-quarter earnings of 22 cents per share on
revenue of $1.18 billion, lower than the same quarter last
year. Jefferies reported that this quarter’s earnings were
impacted by a pre-tax loss in the company’s legacy commercial
banking portfolio. Shares are flat in premarket trading
Thursday.
HSBC (NYSE:HSBC), Citigroup (NYSE:C)
– HSBC is close to acquiring Citigroup’s wealth management division
in China, which manages US$3 billion in assets. This deal
would mean a significant expansion for HSBC in China, a key market
for the bank, and would include the transition of hundreds of Citi
employees. Financial details remain unknown.
UBS (NYSE:UBS) – UBS saw its shares fall
on Wednesday following reports of increased scrutiny by the US
Department of Justice over alleged compliance failures helping
Russian clients evade sanctions. The investigation, still in
its early stages, focuses mainly on potential violations by Credit
Suisse, which was acquired by UBS. The bank has provisions of
about $10 billion for litigation, enough to cover potential related
costs, according to JPMorgan.
JPMorgan Chase (NYSE:JPM) – JPMorgan
Hedged Equity fund (JHEQX) holds a significant position in options
that could accelerate the sale of US stocks if the S&P 500
falls below a certain point, increasing volatility in the
market. This fund, known for its impactful positions in
derivatives, is observed by experts and traders, who analyze the
potential effects of its movements in the markets, creating a
scenario of caution and strategy due to its significant influences
on stock market fluctuations.
Bank of America (NYSE:BAC) – Bank of
America CEO Brian Moynihan said the Federal Reserve is winning the
fight against inflation, but interest rates are expected to remain
high. Despite slowing consumer spending growth, Moynihan sees
the economy avoiding a recession, heading for a “soft
landing.” He also expressed concerns about proposed capital
rules, arguing they could restrict lending and reduce
competitiveness.
Kraken – Cryptocurrency exchange Kraken
plans to offer trading in US stocks and ETFs, starting services in
the US and UK through its Kraken Securities division in 2024, as
reported by Bloomberg. The company already has the necessary
licenses in the UK and has applied for a brokerage license in the
US.
Peloton
Interactive (NASDAQ:PTON), Lululemon
Athletica (NASDAQ:LULU) – Peloton and Lululemon
announced a five-year global partnership, sending Peloton shares up
12.3% in Thursday pre-market trading. Peloton will be the
exclusive provider of digital fitness content for Lululemon, while
Lululemon will be Peloton’s primary sportswear
partner. Lululemon will also discontinue sales of its Studio
Mirror due to low demand.
Nike (NYSE:NKE) – In releasing its
results, Nike will focus on the performance of the Jordan brand,
crucial to its profits. Data indicates a decrease in the
resale value of these shoes, while other brands are
growing. There are concerns that Jordan is “losing steam,”
with resale values and premiums declining significantly.
Costco Wholesale (NASDAQ:COST) –
Costco, known for its diverse product catalog, reported that its
1-ounce gold bars are selling out within hours. CFO Richard
Galanti confirmed the high demand during the quarterly earnings
release. Gold is generally considered a safe investment, and
with economic concerns, products like gold bars become
attractive.
Duckhorn Portfolio (NYSE:NAPA) – The
premium wine maker projected an annual outlook that was lower than
analysts expected. Duckhorn forecast full-year profit of
between 67 and 69 cents per share, excluding items, slightly below
the 70 cents per share consensus estimate forecast by analysts
surveyed by FactSet. The company projects annual revenue of
between US$420 million and US$430 million, lower than the US$432.8
million anticipated by analysts. However, the company managed
to exceed expectations in the fourth fiscal quarter in both
aspects.
Philip Morris International (NYSE:PM) –
Philip Morris aims for more than two-thirds of its revenue by 2030
to come from “smoke-free” products, integrating strategies to exit
the cigarette market. The target is 50% by 2025, expanding to
two-thirds by 2030, with products like IQOS. Additionally, the
company revised downward its annual profit projections, attributing
the decision to the strong dollar and exchange rate issues in
Argentina. Earnings per share expectations for 2023 are
between $5.19 and $5.28, below the $5.66 forecast by FactSet
analysts, although it still represents adjusted growth of 8% to
9.5%.
Workday (NASDAQ:WDAY) – Workday shares
declined 9.8% in premarket trading Thursday after the company
adjusted its long-term goals, now projecting annual subscription
revenue growth of 17% to 19% by fiscal year 2027, a drop from the
previous forecast of 20%. Additionally, the company revised
its operating cash flow margin target from 35% to 30%.
HB Fuller (NYSE:FUL) – The chemical
company released disappointing financial results for the third
quarter. HB Fuller reported earnings per share of $1.06, excluding
items, with a revenue of $900.6 million, while analysts surveyed by
FactSet had anticipated earnings of $1.14 per share and a revenue
of $954 million. Shares are stable in pre-market trading.
Yelp (NYSE:YELP) – Yelp has filed a
lawsuit against Texas Attorney General Ken Paxton for keeping up
notices that crisis pregnancy centers do not offer abortion
services, following allegations by Paxton of violating Texas
law. Yelp argues that the notices are protected by the First
Amendment, aiming to prevent consumers from being misled about the
services offered by such centers.
Exxon Mobil (NYSE:XOM) – A US judge has
denied Exxon Mobil’s request to use tanker trucks to transport
crude oil in California while a pipeline is repaired. Exxon
argued that the trucks are essential to resuming operations at
platforms and facilities closed since a 2015 spill, but the judge
held that they have no inherent right to use trucks, citing safety
concerns. Environmental groups applauded the decision.
Ryanair (NASDAQ:RYAAY), Boeing (NYSE:BA)
– Ryanair will reduce its winter flights due to delays in the
delivery of Boeing aircraft, receiving 14 instead of 27 aircraft
between September and December. Despite this, it maintains its
annual traffic forecast, unless delays persist. Cuts will
affect several European locations, and the company is collaborating
with Boeing to speed up future deliveries.
Jetblue (NASDAQ:JBLU) – Senator Elizabeth
Warren questioned JetBlue CEO Robin Hayes about a possible fare
hike following its $3.8 billion merger with Spirit
Airlines (NYSE:SAVE), citing documents that suggest an
increase of up to 40%. JetBlue denies the allegations, saying
the merger will increase competition and reduce fares. The
Justice Department is challenging the deal, citing reduced
competition and consumer choice.
Ford Motor (NYSE:F), General
Motors (NYSE:GM), Stellantis (NYSE:STLA)
– Negotiations between the United Auto Workers (UAW) and automakers
are intensifying ahead of Friday’s deadline. The union may
expand the strike that began on September 15 if there is not enough
progress. While Ford has made progress in negotiations,
General Motors and Stellantis face more strikes. Visits from
presidents kept attention on the strikes. The outcome of these
negotiations is crucial and investors are on hold, with shares
showing little change.
General Motors (NYSE:GM) – The Teamsters
union has asked U.S. regulators to deny a petition from General
Motors to exempt Cruise Origin, its autonomous vehicle unit, from
safety standards. The petition seeks approval to deploy up to
2,500 vehicles annually without human controls. The union
cites safety and employment concerns, while Cruise emphasizes
commitment to safety.
Ford Motor (NYSE:F) – The chairmen of
three US House committees requested documents from Ford about its
partnership with CATL, a Chinese battery company, and threatened to
summon Ford CEO Jim Farley to testify before Congress, raising
concerns about dependency and tax subsidies.
Toyota Motor (NYSE:TM) – Toyota plans to
build its third car factory in India, expanding its production
capacity in the country for the first time in more than a decade,
due to its partnership with Suzuki. This factory will boost
production capacity by 30%, with Toyota also developing a new SUV
as an anchor product for the new facility, targeting record sales
in the region in 2023.
Lucid Group (NASDAQ:LCID) – Lucid Group
opened its first international factory in Jeddah, Saudi Arabia,
advancing the country’s electrification plans. The factory,
part of a deal that includes the kingdom purchasing up to 100,000
vehicles over 10 years, reinforces the Saudi goal of diversifying
away from oil dependence. The factory will assemble the Lucid
Air, with planned expansion to 155,000 units annually.
Faraday Future Intelligent
Electric (NASDAQ:FFIE) – Financially struggling
Faraday Future aims to raise $90 million through a stock
offering. CEO Matthias Aydt has expressed intentions to
improve liquidity and resolve supply chain and governance
issues.
Meta Platforms (NASDAQ:META)
Gráfico Histórico do Ativo
De Nov 2023 até Dez 2023
Meta Platforms (NASDAQ:META)
Gráfico Histórico do Ativo
De Dez 2022 até Dez 2023
