Shares of Deere & Company (DE, Financial) declined in pre-market trading as the company provided profit guidance for the full year 2024 that fell short of analysts' expectations. Deere's CEO John May suggested that customers might reduce their equipment purchases as the agricultural sector normalizes from the high levels seen in the previous years. The company's first-quarter revenue for 2024 also dropped by 3.6% year-over-year to $12.19 billion, with net income decreasing to $1.75 billion from $1.96 billion.
Bitcoin (BTC-USD, Financial) continued to gain momentum, rising by 1.1% to $52,350. The cryptocurrency has been on an upward trajectory, with a significant increase of 22.9% in February, recovering from losses earlier in the year. Analysts are contemplating the future of Bitcoin as it approaches its all-time high, with some suggesting that the approval of Bitcoin ETFs and the unchanged fundamental factors driving Bitcoin's price appreciation will continue to attract institutional investors.
Microsoft (MSFT, Financial) announced a significant investment of 3.2 billion euros in Germany, focusing on artificial intelligence and data center infrastructure expansion. This investment is seen as a vote of confidence in Germany's economy and is part of a broader trend of tech investments in the country, with other major companies like Intel (INTC) and Taiwan Semiconductor (TSM) also making commitments to expand their operations in Germany.
Retail sales experienced a decline of 0.8% month-over-month in January, with core retail sales also falling short of expectations. This downturn affected various sectors, with notable year-over-year declines in furniture, electronics, and department stores. Companies such as Whirlpool (WHR, Financial), Best Buy (BBY, Financial), Nordstrom (JWN, Financial), and Macy's (M, Financial) may be impacted by these trends. Conversely, grocery and health/personal care stores showed resilience, while nonstore retailers, which include online giants like Amazon (AMZN, Financial) and eBay (EBAY, Financial), saw a year-over-year increase of 6.4%.
Google (GOOG, Financial) (GOOGL, Financial) shares dipped in pre-market trading amid news that OpenAI is developing a web search product that could compete with Google's search services. This new service may leverage Microsoft's (MSFT, Financial) Bing search engine, further intensifying the competition in the search market. Google's revenue, heavily reliant on its search business, could face challenges if OpenAI's product gains traction.
Alnylam Pharmaceuticals (ALNY, Financial) saw its shares decline premarket after reporting lower-than-expected revenue for Q4 2023 and delaying a key Phase 3 readout for its amyloidosis therapy vutrisiran. The delay is attributed to changes in the data analysis plan, with the company now expecting topline data in late June or early July. This news comes as Pfizer (PFE, Financial) continues to lead the market with its ATTR-CM therapy tafamidis, and BridgeBio (BBIO, Financial) awaits FDA review for its experimental therapy for the same condition.
Nvidia (NVDA, Financial) disclosed investments in several companies, including Arm Holdings (ARM, Financial), SoundHound AI (SOUN, Financial), and TuSimple (TSPH, Financial), highlighting its strategic focus on AI and self-driving technologies. The company's investment in Arm is particularly notable given its previous attempt to acquire the chip designer, which was abandoned due to regulatory pressure.
Digital World Acquisition Corp (DWAC, Financial) saw its shares jump after the SEC approved its business combination with Trump Media & Technology Group. The approval marks a significant milestone for the SPAC, which has been working on the acquisition for over two years. The company is set to announce the date for a special stockholder meeting to vote on the combination.
Teradyne (TER, Financial) received an upgrade from J.P. Morgan, moving from Underweight to Neutral, based on the potential improvement in the smartphone market in 2024 and the company's adjusted expectations for the year. The upgrade reflects a more favorable outlook for Teradyne as the market anticipates a recovery in smartphone sales.
Super Micro Computer (SMCI, Financial) gained attention as Bank of America initiated coverage on the company, citing AI as a key driver of demand growth in the server market. The firm's optimistic view on Super Micro's prospects is based on the expected increase in AI server demand, which is projected to outpace traditional server market growth significantly.
Major earnings reports expected before the bell on Friday include Arbor Realty Trust (ABR, Financial), TC Energy Corporation (TRP, Financial), PPL Corporation (PPL, Financial), Healthcare Realty Trust Incorporated (HR, Financial), and Vulcan Materials Company (VMC, Financial), among others.
