Shares of AMD (AMD, Financial) and Intel (INTC, Financial) were under scrutiny as Citi analysts commented on the weaker-than-expected recovery in the PC market, citing January notebook shipment data that fell short of expectations. This led Citi to lower its notebook forecast, suggesting a potential moderation in the PC market recovery for 2024. Despite this, AMD and Intel shares saw a slight increase in premarket trading. AMD continues to hold a Buy rating from Citi, while Intel maintains a Neutral stance.
Nvidia (NVDA, Financial) received optimistic assessments from Wall Street firms, with Loop Capital setting a new high price target for the GPU leader. Nvidia's shares experienced a 2.1% rise in premarket trading. The company, which is expected to report quarterly results soon, is predicted to have significant upside to consensus estimates for the coming years. Loop Capital initiated coverage with a Buy rating and a price target that suggests a substantial increase from current levels.
U.S. stock index futures indicated a mixed opening after the release of January's Producer Price Index (PPI) data, which showed a higher-than-expected rise. This follows a similar trend seen with the recent consumer inflation data. The PPI increased by 0.3% in January, surpassing the anticipated 0.1% rise. The data suggests a persistent inflationary environment, which could influence the Federal Reserve's monetary policy decisions.
The detailed breakdown of the PPI report revealed that while wholesale costs rose, the index for final demand goods saw a decline, primarily due to a drop in final demand energy prices. On the other hand, final demand services experienced a price increase. The core PPI, which excludes food and energy, also exceeded expectations, indicating underlying inflationary pressures.
Nike (NKE, Financial) saw its stock dip in pre-market trading following news of planned workforce reductions and a downgrade by Oppenheimer. The company aims to cut costs by around $2 billion over the next three years, affecting approximately 2% of its workforce. However, the cuts are not expected to impact store and distribution center employees or the innovation team.
Honeywell (HON, Financial) announced a quarterly dividend consistent with previous payouts, maintaining a forward yield of 2.18%. The dividend is payable in mid-March to shareholders of record at the beginning of the month. Honeywell's stock reacted negatively to a disappointing sales outlook, despite the company's CEO set to take over as board chairman in June.
Several small-cap stocks, including Pop Culture Group (CPOP) and Fusion Fuel Green (HTOO), saw significant movements. Pop Culture Group experienced a dramatic surge, while Fusion Fuel Green received approval from the European Commission for a major project. Other notable movers included Tarena International (TCTM) and Lichen China (LICN), with various reasons driving their stock prices.
On the downside, companies like Trupanion (TRUP), Bloom Energy Corp (BE), and Roku (ROKU) faced declines after their earnings releases. Other stocks, such as Dropbox (DBX) and Treehouse Foods (THS), also saw their shares drop following their respective quarterly reports.
Block (SQ, Financial) faced a decline in premarket trading amid whistleblower allegations that its Cash App may not be conducting adequate customer due diligence, potentially allowing for illegal activities. Federal regulators are investigating these claims, which could have implications for the company's compliance with financial regulations.
Arbor Realty Trust (ABR, Financial) maintained its quarterly dividend, keeping it in line with previous payouts and offering a forward yield of over 13%. The dividend is set for mid-March distribution to shareholders on record at the beginning of the month.
Dividend activity for the week included increased payouts from Sherwin Williams (SHW) and CSX (CSX), with declarations from Kraft Heinz (KHC) and AbbVie (ABBV). Looking ahead, companies like Meta Platforms (META) and Target (TGT) are approaching their ex-dividend dates for upcoming payments.
FedEx (FDX) declared a quarterly dividend consistent with prior amounts, offering a forward yield of 2.13%. The dividend is payable at the beginning of April to shareholders of record in mid-March.
Morgan Stanley expressed confidence in Eli Lilly’s (LLY, Financial) potential for further growth, raising the question of whether it could become the first biopharma stock to reach a $1 trillion market cap. The bank's optimism is fueled by strong demand for Eli Lilly's diabetes and weight loss drugs, with a significant increase in the stock's price target.
Apple (AAPL, Financial) is gearing up for its annual developer conference, which could serve as a major catalyst for the company, especially with anticipated AI-related announcements. Citi highlighted Apple's preparations to unveil a generative AI tool for iOS developers, which could enhance its competitive edge in the tech industry.
Stock futures indicated a mixed sentiment following strong tech earnings and mixed economic data. Companies like Coinbase Global (COIN) and Applied Materials (AMAT, Financial) saw their stocks surge after positive earnings reports, while The Trade Desk (TTD) also experienced a climb following its earnings release.
Arbor Realty Trust (ABR, Financial) reported Q4 earnings, with Non-GAAP EPS beating expectations and revenue also surpassing forecasts. The company's performance and dividend consistency were noted, despite the challenges ahead.
The automotive industry continues to grapple with the future of mobility, with automakers like Toyota (TM) and General Motors (GM) exploring partnerships and strategies to compete globally, particularly against rising Chinese competition.
Applied Materials (AMAT, Financial) received positive feedback from Wall Street firms after its earnings report, with expectations of continued growth driven by AI and China. The company's shares, along with other chip equipment makers, saw an uptick in premarket trading.
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