S&P futures: +25.00. Nasdaq futures: +100.00.
The S&P 500 futures are up by 25 points or 0.4%, the Nasdaq 100 futures are up by 100 points or 0.5%, and the Dow Jones Industrial Average futures have increased by 71 points or 0.2%.
There's a positive trend in early trading, with gains in chipmakers and some large-cap stocks. Treasury yields are dropping, which helps the equity futures. The 2-yr yield has decreased to 3.97%.
Stock futures are influenced by news from China's National Development and Reform Commission, which held a press conference about stimulus implementation but did not announce new measures.
The NFIB Small Business Optimism survey rose to 91.5 in September from 91.2 in August.
Oil prices are down after a recent rise, amid concerns about Hurricane Milton, now a category 4, expected to impact Florida's west coast on Thursday morning. WTI crude oil futures have dropped by 2.2% to $75.45 per barrel.
In economic data, equity indices in the Asia-Pacific region mostly ended lower: Japan's Nikkei fell by 1.0%, Hong Kong's Hang Seng dropped 9.4%, China's Shanghai Composite gained 4.6%, India's Sensex went up by 0.7%, South Korea's Kospi fell by 0.6%, and Australia's ASX All Ordinaries decreased by 0.4%.
Major European indices are trading down: STOXX Europe 600 is down 0.5%, Germany's DAX is down 0.1%, U.K.'s FTSE 100 has fallen by 1.2%, France's CAC 40 is down 0.6%, Italy's FTSE MIB is down 0.2%, and Spain's IBEX 35 is down 0.3%.
A look at economic data shows Germany's August Industrial Production rose by 2.9% month-on-month and decreased by 2.5% year-on-year. France's August trade deficit was EUR 7.4 billion, compared to an expected deficit of EUR 5.5 billion and the previous deficit of EUR 6.0 billion.
Today's News
Nvidia (NVDA, Financial) continues to be a focal point for investors, with Citi maintaining a Buy rating and a $150 price target on the stock. Analysts expect the company's stock to remain range-bound until CES in January, but anticipate significant growth driven by AI adoption and Blackwell platform sales in the April quarter. The focus is on Nvidia's gross margins, projected to stabilize in the mid-70% range in the long term.
PepsiCo (PEP, Financial) experienced a decline in its stock after reporting Q3 earnings that missed expectations for organic revenue growth. The company noted a 1.3% increase in organic revenue, falling short of the anticipated 3% growth. Despite this, PepsiCo remains committed to achieving at least 8% core constant currency EPS growth by focusing on cost management amid a challenging growth environment.
Vodafone (VOD, Financial) expanded its partnership with Google (GOOG, GOOGL) through a billion-dollar deal aiming to enhance AI and cloud services across Europe and Africa. This collaboration will utilize Google's AI platforms to improve productivity and security, while also exploring integration with YouTube on Vodafone TV devices.
Super Micro Computer (SMCI, Financial) saw a rise in its shares following the successful deployment of over 100,000 GPUs with a liquid cooling solution. This innovation reduces power consumption by up to 40%, making it a preferred choice for data centers seeking efficient solutions.
Microsoft (MSFT, Financial) faced a downgrade by Oppenheimer due to concerns over high revenue and earnings estimates. The downgrade was influenced by potential losses from OpenAI, which could reach $3 billion in FY25, impacting Microsoft's earnings growth.
Qualcomm (QCOM, Financial) and Synaptics (SYNA, Financial) were downgraded by KeyBanc Capital Markets due to increased competition and limited catalysts in their respective markets. Qualcomm faces challenges from Apple in the smartphone sector, while Synaptics struggles in the enterprise and automotive markets.
Foxconn (OTCPK:FXCOF) is building the largest production facility for Nvidia's (NVDA, Financial) GB200 superchips, driven by high demand for AI server technology. This move highlights Foxconn's strategic shift towards AI manufacturing, leveraging its supply chain capabilities.
Honeywell (HON, Financial) announced plans to spin off its Advanced Materials business into a separate publicly traded company. This strategic move aims to enhance Honeywell's organic sales growth and free cash flow, while reducing sales cyclicality.
McDonald's (MCD, Financial) filed a lawsuit against major meat processors, alleging collusion to inflate beef prices by limiting supply. The fast-food giant claims these companies conspired to manipulate the market, seeking triple damages for the alleged overpricing.
GuruFocus Stock Analysis
- Aviat Networks' Q4 Earnings Took Off, Launching Shares to New Heights! by Nauman khan
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- PayPal Gives An Example of Using Digital Currencies in Business Setting by Shanti Putri
