U.S. Stock Futures Search for Direction After Previous Session’s Dip
U.S. stock futures sought direction on Friday following a decline on Wall Street in the previous session, as the momentum from earlier in the week’s mild inflation data waned. On Thursday, the major averages fell, with the Dow Jones Industrial Average retreating from its intraday high of 40,000. The S&P 500 and Nasdaq Composite also ended the day in the red.
This downturn came after a record-setting Wednesday, where all three indexes reached new all-time highs. This surge was driven by data showing a smaller-than-expected rise in consumer prices for April, fueling hopes for up to two interest rate cuts by the Federal Reserve later this year.
Reddit Shares Spike on OpenAI Deal
Reddit shares soared by 11.5% in aftermarket trading on Thursday after announcing a partnership with OpenAI. This deal will allow OpenAI to utilize content from Reddit for its ChatGPT AI chatbot. In return, Reddit will integrate new AI features for its users and moderators and collaborate with OpenAI on advertising initiatives.
This announcement is part of OpenAI’s broader strategy to secure partnerships with media groups, aiming to train its AI models with reliable data sources. Despite facing legal challenges from publishers over alleged copyright infringements, OpenAI continues to expand its data sources, with backing from tech giant Microsoft.
Boeing Shareholders to Vote on Outgoing CEO’s Board Status
Boeing shareholders are poised to vote on whether outgoing CEO David Calhoun should retain his board seat. The company is already searching for Calhoun’s successor, with Calhoun planning to retire at the end of the year. Investors are advocating for an external candidate, citing a need for credible leadership.
Boeing’s safety reputation took a hit earlier this year following a mid-air breach on a 737 Max jet. Consequently, the company’s shares have dropped by over 25% in 2024. Proxy advisor Glass Lewis has recommended that shareholders vote against Calhoun’s return to the board, highlighting Boeing’s safety issues during his tenure.
Chinese Industrial Production Surges in April
China’s industrial production exceeded expectations in April, suggesting a robust recovery in the manufacturing sector. The National Bureau of Statistics reported a 6.7% year-on-year increase, outpacing the expected 5.5% and accelerating from March’s 4.5% growth.
Despite this industrial uptick, China’s retail sales growth lagged behind expectations, reflecting ongoing weak consumption. The manufacturing sector has been buoyed by Beijing’s continued monetary stimulus efforts aimed at rejuvenating the world’s second-largest economy.
Oil Prices on Track for Weekly Gains
Oil prices rose on Friday, setting the stage for weekly gains driven by signs of increasing demand and easing inflation in the U.S., the largest crude consumer globally. By early morning, U.S. crude futures were up 0.3% at $79.50 per barrel, and Brent crude climbed 0.5% to $83.66 per barrel, both poised for over 1% weekly gains.
The oil market has been uplifted by lower-than-expected inflation data, boosting prospects for lower interest rates and future economic activity, which would, in turn, increase oil demand. Additionally, a significant drawdown in U.S. oil inventories has further supported hopes of rising demand, especially with the summer travel season approaching.
$WMT- Stifel analyst Mark Astrachan raised the firm’s price target on Walmart to $69 from $65 and keeps a Hold rating on the shares. Stifel continues to view the long-term outlook for EBIT growth to exceed sales as unchanged reflecting benefits from technology investments in supply chain/automation that should drive considerable cost efficiencies, and mix-accretive initiatives, including Walmart Connect and fulfillment services, the analyst tells investors in a research note. Citi raised the firm’s price target on Walmart to $75 from $63.33 and keeps a Buy rating on the shares. The analyst says Q1 was an important quarter for Walmart as nearly all segments of its business “were operating in sync.” Against a backdrop of market concerns about a broad sales and consumer slowdown, Walmart calmed those fears by beating on nearly every line item with traffic and units up across all concepts, the analyst tells investors in a research note. The firm says the Q1 report “showed that everything is working together.”
OP had you all entering at $58
$AMAT- TD Cowen raised the firm’s price target on Applied Materials to $250 from $245 and keeps a Buy rating on the shares. The firm said Chnia DRAM spending seems to be normalizing but managment sees that “dropping significantly” in the July quarter. Importantly, technology inflection like Gate All Around and Advanced Packaging driven revenues continue to inflect upwards.
$DE- Stifel analyst Stanley Elliott raised the firm’s price target on Deere to $450 from $425 and keeps a Buy rating on the shares. Deere reported results ahead of expectations but lowered full-year guidance, now embedding meaningful inventory reductions in Q4 as inventories across all equipment classes appear too high, the analyst tells investors in a research note. While 2025 remains cloudy, the firm thinks it is closer to the end of the earnings revision period than the beginning
$NFLX- Benchmark analyst Matthew Harrigan raised the firm’s price target on Netflix to $450 from $440 and keeps a Sell rating on the shares. Netflix management is continuing to execute well on advertising and injecting compelling new content including NFL Christmas Day games and WWE Raw next year, the analyst tells investors in a research note. The firm does not feel the current valuation can be justified even valuing Netflix as a Nasdaq 100 high growth technology name and disregarding its media stock character.
$NVDA- Oppenheimer analyst Rick Schafer reiterated an Outperform rating and $1,100 price target on Nvidia ahead of the company’s upcoming Q1 earnings results. The firm said it sees a beat/raise quarter led by “insatiable CSP AI accelerator appetite.” Oppenheimer added that it sees flagship H100 GPU supply constraints continuing to ease, and the firm believes that significantly lower lead times now are allowing management to “better capture demand.”
Northrop Grumman (NOC) announced an agreement for access and use of NVIDIA (NVDA) AI software to accelerate development of some of the most advanced systems. This agreement, facilitated by Future Tech Enterprise, gives Northrop Grumman access to NVIDIA’s extensive portfolio of AI and generative AI software, its platforms and frameworks, including NVIDIA Omniverse. “NVIDIA’s AI platforms will help us deliver Northrop Grumman’s advanced capabilities to our customers faster and with greater effect,” said Vern Boyle, Vice President, Northrop Grumman Microelectronics Center.
Hey OP…. Another perfect week in the books as the two alerts paid and our systems all gained per usual. Today I’ll be out of pocket much of the day for my son’s graduation so lean on the chat and stack well or stay patient. Enjoy the weekend and we will get back to more stacks next week. OP Lotto tickets will be posted in chat later this session and more great contests coming next week. See you later
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
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