Market Update: U.S. Stock Futures Dip Ahead of Amazon Earnings and Fed Decision
In anticipation of Amazon’s earnings and a pivotal Federal Reserve monetary policy decision, U.S. stock futures edged slightly lower on Tuesday. The previous day witnessed a surge in Wall Street indices, driven by notable gains in Tesla shares and a report of Apple’s discussions with OpenAI regarding AI technology integration.
Investor attention is now focused on the upcoming Fed policy meeting, widely anticipated to maintain interest rates at their current levels. Market participants eagerly await insights from Fed Chair Jerome Powell on the future trajectory of rates, with many speculating that any rate cuts may be deferred until September.
Amazon’s Quarterly Earnings in the Spotlight
Amazon is poised to release its latest quarterly earnings, headlining Tuesday’s corporate calendar. Investors are eager to assess the performance of Amazon Web Services (AWS), particularly its efforts to integrate AI features to boost demand. Similar to tech giants Meta Platforms, Alphabet, and Microsoft, Amazon faces scrutiny on how it plans to leverage its AI investments for sustained profitability.
Analysts anticipate stable returns for Amazon, supported by consistent online customer spending and advertising initiatives within its Prime Video streaming service. Ongoing cost-cutting measures and logistical network optimizations may further bolster profit margins.
Leadership Changes at Paramount Global
Amid ongoing merger discussions with Skydance Media, Paramount Global announced the resignation of CEO Bob Bakish. George Cheeks, Chris McCarthy, and Brian Robbins have been appointed to lead the company moving forward. However, some analysts express concerns over the need for stable leadership amidst negotiations with Skydance and the competitive landscape of Paramount+’s streaming service.
Reports indicate that Skydance has enhanced its bid to acquire Paramount, injecting $3 billion into the combined entity, which briefly lifted Paramount’s Class B shares in afterhours trading.
HSBC CEO Noel Quinn to Retire
HSBC announced the retirement of CEO Noel Quinn after nearly five years, during which he oversaw a significant transformation within the bank. Quinn’s tenure witnessed strategic streamlining, including the divestment of Canadian and Argentine operations, and a refocus on core consumer banking segments in Europe and Asia. These initiatives contributed to HSBC’s improved financial position and earnings performance over the past two years.
Oil Prices Remain Steady Amid Ceasefire Talks
Oil prices exhibited stability in European trading, with a focus on ceasefire negotiations between Israel and Hamas. Expectations of prolonged higher U.S. interest rates ahead of the Federal Reserve meeting this week tempered market sentiment. Brent oil futures for June rose marginally to $88.45 per barrel, while West Texas Intermediate crude futures edged up to $82.72 per barrel by 03:29 ET.
$BA- Argus analyst John Eade downgraded Boeing to Hold from Buy without a price target. The shares have fallen 35% this year due to new problems with the Max airplane that have ultimately led to the replacement of the board chairman and early retirement of the CEO, the analyst tells investors in a research note. The firm says the “business is suffering.” Boeing faces numerous near-term challenges, both external from inflation and the supply chain, and internal from aircraft issues, including a recent incident in which a door plug flew off a Boeing jet in midair, notes Argus. It believes the shake-up in the executive suite will push Boeing’s potential turnaround “multiple quarters into the future.”
$MSFT-Â Microsoft announced it will invest $1.7B over the next four years in new cloud and AI infrastructure in Indonesia, as well as AI skilling opportunities for 840,000 people, and support for the nation’s growing developer community. It represents the single largest investment in Microsoft’s 29-year history in the country. Together, these initiatives will help achieve the Indonesian government’s Golden Indonesia 2045 Vision, which aims to transform the nation into a global economic powerhouse. “This new generation of AI is reshaping how people live and work everywhere, including in Indonesia,” said Satya Nadella, Chairman and CEO, Microsoft. “The investments we are announcing today – spanning digital infrastructure, skilling, and support for developers – will help Indonesia thrive in this new era.”
$AAPL- Apple (AAPL) has poached at least 36 AI experts from Google (GOOGL) and has created a laboratory in Zurich in an effort to develop new AI models and products, Michael Acton of The Financial Times reports. According to an analysis performed by the Times of LinkedIn profiles, public job postings, and research papers, the company has undertaken a hiring spree over the past few years to expand its AI and machine learning team.
$TSLA- The California New Car Dealers Association released its California Auto Outlook covering Q1 of 2024 .”Californians’ love affair with electric vehicle giant Tesla may have peaked. Tesla registrations are down again in The Golden State YTD, reporting a 7.8 percent dip (last quarter posted a 9.8 percent decline) amongst all brand registrations. Toyota showed significant gains among the top three California shareholder brands, increasing to 16.6 percent, as did Honda, capturing 10.5 percent of the market, while Tesla’s numbers faltered (11.6 percent),” the report reads. The California New Car Dealers Association says traditional manufacturers are “stepping up to the plate,” offering new plug-in hybrid hybrid, and battery electric vehicle models. This shift is evident in the sales of BEVs by traditional franchised dealerships, which have increased 14% compared to last year’s figure, it notes.
Hey OP. I entered some Bitcoin today at $61k. Tight stop on that…. Waiting for my next alert play as I eye DIS for Call scalp. See you all in chat
If you want to get the plays of the day then signup for Gold, and get a FREE TRIALIf you want to get the plays of the day then signup for Gold, and get a FREE TRIAL
Responses