Today, stock futures are looking up, with the S&P 500 futures climbing 15 points (0.3% above fair value), Nasdaq 100 futures increasing by 72 points (0.4% above fair value), and Dow Jones Industrial Average futures rising by 90 points (0.3% above fair value). This positive movement is partly thanks to some big companies seeing their stocks go up before the market opens. Treasury yields haven't changed much from yesterday, adding to the optimistic mood. The yield on 10-year notes has gone up slightly by one basis point to 4.37%, and the 2-year note yield is also up by one basis point to 4.69%.
Later today, the weekly jobless claims report might shift how people feel about the Treasury market. Meanwhile, WTI crude oil prices are steady this morning at $85.37 a barrel, even with rising geopolitical tensions.
In company news:
- Levi Strauss (LEVI) shares are up 11.8% after they reported earnings that were better than expected and raised their profit outlook for the year.
- BlackBerry (BB) also beat expectations with their earnings and revenue, but their future earnings and revenue forecasts are a bit below what analysts thought.
- Exxon Mobil (XOM) shares dipped slightly as they shared factors that might affect their first-quarter results, including changes in gas prices.
- Block (SQ, Financial) saw a decrease after being downgraded by Morgan Stanley.
- Bank of America (BAC) got a slight boost despite a downgrade from UBS.
- Wayfair (W) shares are up after an upgrade from Evercore ISI.
- Alphabet (GOOG, Financial) is down slightly amid news they might start charging for AI-powered search services.
Reviewing overnight developments:
Today's News
Block (SQ, Financial) experienced a decline of 3.2% in its stock value during Thursday's premarket trading following a downgrade by Morgan Stanley. The downgrade was attributed to an overestimation by the market of the growth potential for its Cash App and Square services. Analyst James Faucette highlighted concerns regarding Block's ability to sustain growth amidst identified medium-term headwinds and a high market penetration among Gen Z consumers by incumbent banks.
Nikola (NKLA, Financial) announced a production milestone with 43 Class 8 hydrogen fuel cell electric vehicles produced and 40 wholesaled during Q1. CEO Steve Girsky emphasized the company's commitment to its 2024 goals, highlighting the commencement of BEV "2.0" truck returns to customers and confirming that all trucks wholesaled are destined for end customers.
Morgan Stanley maintained an optimistic stance on Tesla (TSLA, Financial), despite anticipating a bumpy road ahead. The firm pointed out Tesla's potential as an AI beneficiary but noted the necessity for stabilization in the auto business's negative earnings revisions. Analyst Adam Jonas emphasized that Tesla's valuation as an AI/robotics company hinges on the core auto business's performance.
Reddit (RDDT, Financial) garnered attention as Baird initiated coverage with a Neutral rating, citing the platform's unique value to advertisers but also noting its premium valuation compared to other internet and social media platforms. Analyst Colin Sebastian set a $50 price target on the shares, acknowledging Reddit's strong user growth trajectory.
Google (GOOG, GOOGL) is reportedly considering placing some of its generative AI search features behind a paywall, according to Bank of America. This move could potentially offset computing costs associated with the technology and allow Google to better communicate its AI narrative without compromising margins.
Treasury Secretary Janet Yellen's visit to China aims to address trade imbalances, particularly in the clean energy sector. This visit underscores the strategic importance of trade relations between the two nations, especially concerning exports of solar panels, batteries, and electric vehicles.
Boston Scientific (BSX, Financial) and Axonics (AXNX, Financial) announced a delay in their merger's expected closure to the second half of the year due to a request for additional information from the FTC. This development extends the waiting period under the HSR Act, with both companies committing to cooperate fully with the FTC.
International Paper (IP, Financial) confirmed significant progress in its merger discussions with DS Smith (DITHF, Financial), highlighting the synergies expected from combining their corrugated packaging solutions businesses. CEO Mark Sutton emphasized the merger's potential to enhance sustainable packaging offerings for customers.
Copper prices reached their highest point since January 2023, driven by optimistic economic data from China and concerns over global supply risks. The increase reflects growing demand expectations for industrial metals amidst uncertain production forecasts.
ChargePoint Holdings (CHPT, Financial) received a bullish outlook from Needham following a non-deal roadshow, with analysts highlighting the company's potential for gross margin improvement and operational efficiency gains through its partnership with Acbel.
The Simply Good Foods Company (SMPL, Financial) reported a 5% increase in FQ2 sales, driven by Quest volume. The company adjusted its full-year guidance due to lower-than-anticipated Atkins consumption, expecting net sales to increase around the mid-point of its long-term growth algorithm.
Healthcare Triangle (HCTI, Financial) announced a partnership with Cynomi aimed at enhancing cybersecurity in the healthcare provider industry. The collaboration introduces a Virtual Chief Information Security Officer service tailored for healthcare providers.
ConAgra Brands (CAG, Financial) reported Q3 non-GAAP EPS of $0.69, surpassing expectations and maintaining revenue in line with forecasts. The company has increased its fiscal 2024 adjusted operating margin guidance and updated several financial metrics for the year.
Scotts Miracle-Gro (SMG, Financial) provided a positive outlook for Q2, projecting a net leverage ratio significantly below the quarter's maximum and better than Q1. The company highlighted strong retail shipments and free cash flow performance, supporting its $1B free cash flow target for fiscal years 2023 and 2024.
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