OP Wire 5/14 (OP – Lite)

By Steve

U.S. Stock Futures Flat as Investors Eye Key Inflation Data

U.S. stock futures remained largely unchanged on Tuesday morning as investors awaited the release of crucial inflation data later this week, which could significantly influence the Federal Reserve’s future interest rate decisions. As of 03:29 ET (07:29 GMT), the Dow futures contract, S&P 500 futures, and Nasdaq 100 futures were all hovering around the flatline.

On Monday, Wall Street’s main averages showed mixed results, with the benchmark S&P 500 edging marginally lower by 0.02%. This cautious trading behavior comes ahead of April’s consumer price index (CPI) figures, set to be released on Wednesday. The CPI is a key indicator of inflation in the U.S. economy and is projected to have risen by 0.4% on a monthly basis in April, consistent with March’s pace. Year-over-year, the CPI is expected to decelerate slightly to 3.4% from 3.5%. Excluding volatile items such as food and fuel, consumer price growth is forecasted to slow to 0.3% month-on-month and an annualized 3.6%.

Markets are closely monitoring this data, as it could heavily impact the Fed’s timeline for potential interest rate cuts later in the year. The central bank has been focused on controlling inflation through a series of rate hikes that have pushed borrowing costs to their highest levels in over two decades.

“Roaring Kitty” Resurfaces, Sending GameStop Shares Soaring

Shares of videogame retailer GameStop surged over 20% in after-hours trading, continuing gains after the stock saw its biggest jump since January 2021 on Monday. The rally was sparked by the first post in three years on X.com from “Roaring Kitty,” an account linked to financial markets commentator and social media influencer Keith Gill. Known as “Deep F***ing Value” on Reddit, Gill became a prominent figure during the 2021 trading frenzy in “meme stocks” like GameStop and AMC Entertainment.

Following Gill’s post, which included a series of well-known internet memes, shares of AMC and Koss Corp also rose sharply. Although none of the memes directly mentioned GameStop or other stocks, the post was enough to reignite interest among traders.

OpenAI Unveils Advances to ChatGPT

OpenAI has introduced significant updates to its popular artificial intelligence model, GPT-4o, as it faces increasing competition from major tech firms. The new model boasts enhanced capabilities in analyzing images, video, and text, and includes a voice assistant feature for easier use, according to OpenAI Chief Technology Officer Mira Murati.

During a presentation on Monday, Murati highlighted that GPT-4o provides “much faster” intelligence than its predecessor, demonstrating its voice translation abilities. Shares in language learning app Duolingo dipped following the announcement. The update comes as Google prepares to unveil new AI features at its annual developer conference this week, although Murati noted that the timing of OpenAI’s event was coincidental.

Apple Supplier Foxconn Q1 Profit Rebounds, But Misses Estimates

Taiwanese electronics giant Foxconn, officially known as Hon Hai Precision Industry, reported a sharp increase in first-quarter profit, benefiting from increased demand for server technology. Net profit jumped 72% to T$22.01 billion ($680 million), although it fell short of Bloomberg’s estimate of T$29.1 billion.

The profit surge was partly due to a lower comparison base from last year when the company faced a significant decline in electronics demand. While the growing artificial intelligence industry has helped offset some recent dips, broader consumer electronics demand, which makes up a significant portion of Foxconn’s earnings, remained weak. This was particularly evident in Apple’s first-quarter results, where the tech giant, Foxconn’s largest customer, reported better-than-expected earnings but saw a notable drop in iPhone sales in China.

Oil Prices Muted Amid Canadian Wildfires

Crude oil prices were steady on Tuesday, giving back some gains from the previous session as wildfires in Canada threatened to disrupt the country’s oil supply. Markets remain cautious as the situation develops, with potential supply constraints adding to the uncertainty in the energy sector.

Hey OP…. Nice gains yesterday on the BABA play as BABA reported and the data was better than the street is believing during premarket. I’ll be buying the dip this morning for long hold. See you in chat!

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