Stock market futures are indicating a lower opening, with S&P 500 down 18 points and Nasdaq 100 down 52 points. Tech stocks are experiencing pre-open losses, adding to negative sentiment driven by growth concerns after a weak ISM manufacturing report. Treasury yields and oil prices are lower this morning due to continued concerns about the economic slowdown.
Several companies are making headlines in corporate news, such as Instagram testing forced ads and TSM increasing production rates for NVIDIA. HealthEquity and GitLab beat earnings expectations while fibrogen announces FDA clearance for a new drug application. Lockheed Martin, Bath & Body Works, Johnson & Johnson, GameStop, and AMC Entertainment are also in focus for various updates.
In overnight news, JP Morgan highlighted Broadcom and Marvell Technology as leaders in the high-end custom chip market expected to grow due to generative artificial intelligence advances. The Biden administration is preparing an executive order to address illegal immigration at the US-Mexico border and Viking Therapeutics saw a stock rise after positive trial data for a weight-loss drug targeting NASH.
Intel unveiled new AI processors at a technology conference in Taiwan, aiming to regain market share from competitors. NVIDIA received a price target increase and India’s benchmark indices saw significant declines amid national election vote counting. Upstart Holdings was upgraded by Redburn Atlantic and Taiwan Semiconductor acknowledged discussions about relocating chip facilities. Realty Income raised its earnings guidance and investment volume for 2024.
Norwegian gas exports are set to resume after an outage caused natural gas prices to rise. GameStop continued its bullish trend, HealthEquity gained nearly 6%, and Axos Financial fell 12%. Omega Healthcare Investors remained a top pick despite a tenant’s bankruptcy filing. Microsoft and Hitachi entered a strategic collaboration to accelerate generative AI services. TeraWulf reported mining 186 bitcoins in May after the halving event, achieving an energy cost per bitcoin of $31,239.
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