Today, the stock market is looking up, with the S&P 500, Nasdaq 100, and Dow Jones Industrial Average all trading above their fair values. Here's a quick rundown:
- The S&P 500 futures are up by 22 points, a 0.4% increase.
- The Nasdaq 100 futures have risen by 161 points, marking a 0.8% gain.
- The Dow Jones Industrial Average futures are up by 103 points, a 0.3% rise.
This positive trend follows a record closing high for these indices, fueled by ongoing momentum from the Federal Reserve's recent meeting where it maintained its rate cut outlook for the year. Micron (MU, Financial) also saw a notable pre-open jump after reporting impressive earnings and future guidance.
Adding to the optimism, the Swiss National Bank announced an unexpected rate cut, while the Bank of England is expected to maintain rates, adding to the market's positive bias.
Today's economic data includes:
- Weekly Initial and Continuing Claims, Q4 Current Account Balance
- Flash S&P Global U.S. Manufacturing and Services PMI
- February Existing Home Sales and Leading Indicators
- Weekly natural gas inventories
In corporate news:
- Micron (MU, Financial) exceeded expectations with its earnings report and future earnings guidance.
- Apple (AAPL, Financial) faces a potential antitrust lawsuit, according to Bloomberg.
- Chewy (CHWY) reported earnings above expectations and provided future revenue projections.
- KB Home (KBH) surpassed earnings expectations and raised its revenue guidance for the upcoming year.
- Five Below (FIVE) reported earnings below expectations and projected lower future earnings and revenue.
- Accenture (ACN, Financial) beat earnings expectations but projected lower revenue for the next quarter and reduced its yearly guidance.
- Darden Restaurants (DRI) missed earnings and revenue expectations and provided future earnings guidance in line with consensus but lower revenue projections.
- NVIDIA (NVDA) saw its price target increased by TD Cowen.
- Broadcom (AVGO, Financial) was upgraded to Outperform by TD Cowen.
Reviewing overnight developments:
Today's News
Apple (AAPL, Financial) is under the spotlight with a new antitrust lawsuit from the U.S. Department of Justice, potentially leading to significant fines and changes in its business model. Despite this challenge, Wedbush Securities anticipates no immediate alterations to Apple's operations but suggests a settlement is inevitable. The lawsuit marks the third DOJ action against Apple in fourteen years, highlighting ongoing regulatory scrutiny.
Micron Technology (MU, Financial) shares experienced a significant uplift, soaring 18% following its FQ2 earnings announcement. The company reported a substantial increase in DRAM and NAND revenue, with projections for FQ3 earnings and sales surpassing analyst expectations. This optimistic outlook underscores Micron's strong position in the semiconductor industry.
Broadcom (AVGO, Financial) also saw its shares increase by 3% after revealing new artificial intelligence infrastructure solutions. The announcement, made during an investor meeting, emphasizes the company's commitment to advancing AI technology and its potential for future growth.
The U.S. Air Force has successfully tested a hypersonic weapon developed by Lockheed Martin (LMT, Financial), although specific details about the test's objectives and the weapon's speed were not disclosed. This development highlights the ongoing efforts in advancing military capabilities and Lockheed Martin's role in these innovations.
The Biden administration has announced the forgiveness of nearly $6B in student loans for 78,000 public service workers, marking a significant step in its efforts to alleviate student debt burdens. This move is part of a broader initiative to support teachers, nurses, firefighters, and other public service professionals.
Accenture (ACN, Financial) has declared a quarterly dividend, maintaining its commitment to shareholder returns despite cutting its annual revenue growth forecast. The adjustment reflects challenges in demand for IT and consulting services, with the company now expecting slower growth for the fiscal year.
Papa John's International (PZZA, Financial) revealed a leadership change, with CEO Rob Lynch transitioning to the CEO role at Shake Shack (SHAK, Financial). This executive shuffle comes as both companies navigate the competitive fast-food landscape and strive for continued growth.
Lithium Americas (LAAC, Financial) reported a successful year with significant lithium carbonate production and anticipates positive cash flow from operations in 2024. This projection highlights the increasing demand for lithium, driven by the electric vehicle market and renewable energy initiatives.
Merck (MRK, Financial) disclosed that its Keytruda and Lynparza combination failed in a Phase 3 lung cancer trial. Despite this setback, the company remains committed to exploring new treatments and contributing to advancements in cancer therapy.
IBM (IBM, Financial) has secured a $576 million contract to establish a trusted supply chain for advanced semiconductor technologies. This contract underscores the importance of secure and reliable technology infrastructure for national defense and commercial applications.
TELA Bio (TELA, Financial) announced the U.S. commercial launch of its Liquifix surgical devices, marking a significant milestone in the company's growth and its commitment to innovation in medical technology.
Li Auto (LI, Financial) has adjusted its delivery outlook downward, citing operational challenges. The company aims to refocus on core strengths and enhance user value as it navigates the competitive electric vehicle market.
The Swiss central bank has unexpectedly cut interest rates, signaling a shift in monetary policy amid stable inflation rates. This move reflects a broader trend of central banks adjusting policies in response to economic indicators.
FactSet Research Systems (FDS) reported mixed fiscal Q2 results, with earnings surpassing expectations but revenue falling short. The company remains cautious in its fiscal 2024 outlook, reflecting the uncertain economic environment.
Gold prices (XAUUSD:CUR) reached a record high as the Federal Reserve maintained its rate cut outlook, highlighting gold's appeal as a safe-haven asset amid economic uncertainties.
Campbell Soup Company (CPB, Financial) faces a lawsuit from the Department of Justice over allegations of pollution in Lake Erie, underscoring the environmental challenges facing the food industry.
Nano Dimension (NNDM, Financial) reported a revenue increase in its Q4 earnings, attributing the growth to enhanced sales efforts and a significant reduction in net cash burn. The company's strategic initiatives are poised to drive further improvements in financial performance.
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