The S&P 500 futures are down 13 points, the Nasdaq 100 futures are down 77 points, and the Dow Jones Industrial Average futures are flat.
Contracts tied to the S&P 500, Nasdaq 100, and Dow industrials are lower after yesterday's rate cut-induced rally. Volume is expected to be high on this "quadruple witching" expiration day, including the expiration of index options, index futures, stock options, and single-stock futures.
Early losses in some large-cap names have contributed to the downside, along with negative responses to earnings from FedEx (FDX, Financial) and Lennar (LEN).
The 10-year yield is down one basis point to 3.73%, and the 2-year yield is up one basis point to 3.61%.
In corporate news:
Today's News
This week's dividend activity saw notable increases from major players like Microsoft (MSFT, Financial) and JPMorgan (JPM, Financial), along with declarations from Dell Technologies (DELL) and CVS Health (CVS). Microsoft (MSFT) announced a dividend hike of 10.7%, raising its payout to $0.83 from $0.75. JPMorgan Chase (JPM) also increased its dividend by 8.7%, setting the new amount at $1.25, up from $1.15. Argan (AGX) declared a 25% increase, raising its dividend to $0.375 from $0.30.
FedEx (FDX, Financial) saw a sharp decline in early trading after issuing downside guidance that alarmed investors. The company reported that FQ1 results were negatively impacted by weak revenue trends, including a global decline in priority volume and growth in deferred volume. Morgan Stanley downgraded FedEx (FDX) to Underweight, citing structural challenges and greater EPS risk over the long term.
Constellation Energy (CEG, Financial) surged 7.9% pre-market after announcing a 20-year power purchase agreement with Microsoft (MSFT, Financial). This deal will help restore and extend the life of a reactor at the Three Mile Island nuclear power plant until at least 2054. The agreement is Constellation's (CEG) largest-ever power purchase deal, with plans to fund the project independently.
Nvidia (NVDA, Financial) has joined forces with UAE-based AI company G42 to advance climate technology, focusing on improving global weather forecasting accuracy. The collaboration will establish a new operational base and Climate Tech Lab in Abu Dhabi, utilizing Nvidia's Earth-2 platform to enhance climate and weather predictions through AI-augmented simulations.
The Biden administration announced over $3 billion in funding for 25 battery manufacturing projects across 14 states. American Battery Technology (ABAT, Financial) will receive $150 million to build a lithium-ion battery recycling facility, while Albemarle (ALB, Financial) will get $67 million to retrofit a plant for manufacturing anode material. Honeywell (HON, Financial) and Dow Inc. (DOW, Financial) are also among the recipients, receiving $126 million and $100 million, respectively, for lithium battery-related projects.
PepsiCo (PEP, Financial) experienced a dip in early trading after Morgan Stanley downgraded the stock to Equal Weight. The downgrade came as PepsiCo (PEP) lost market share to competitors like Coca-Cola (KO) and Keurig Dr Pepper (KDP). Analyst Dara Mohsenian highlighted that none of PepsiCo's major product categories are gaining or holding share year-over-year.
Warren Buffett (Trades, Portfolio)'s Berkshire Hathaway (BRK.B) has sold approximately $900 million worth of Bank of America (BAC, Financial) shares, reducing its stake to 10.8%. The sales bring Berkshire's (BRK.B) total divestment of BofA (BAC) shares to around $8 billion since mid-July. The proceeds and dividends earned since 2011 exceed the $14.6 billion initially spent to build the stake.
General Motors (GM) is recalling nearly 450,000 vehicles due to an issue with the brake fluid indicator system. The National Highway Traffic Safety Administration found that a brake fluid leak could degrade the brake pedal performance before the indicator light illuminates. GM will provide a software update to resolve the issue.
Palantir Technologies (PLTR) has secured a $99.8 million contract to extend Maven Smart System access to various branches of the U.S. military. The contract will support AI infrastructure capabilities for the Army, Air Force, Space Force, Navy, and Marine Corps, enhancing battlespace awareness and logistics.
NovaBay Pharmaceuticals (NBY) announced the sale of its Avenova brand assets for $9.5 million in cash to PRN Physician Recommended Nutriceuticals. The deal is expected to close in the fourth quarter of the year.
ASML (ASML) shares fell approximately 2% pre-market after Morgan Stanley downgraded the stock to Equal-weight and reduced its price target to €800 from €925. The downgrade was attributed to risks including weak Intel capacity additions and a slowing DRAM cycle.
W. P. Carey (WPC, Financial) declared a quarterly dividend of $0.875 per share, a 0.6% increase from the previous $0.87. The forward yield is now 5.54%, with the dividend payable on October 15 to shareholders of record as of September 30.
Third Coast Bancshares (TCBX) declared a $17.25 per share quarterly dividend on its 6.75% Series A Convertible Non-Cumulative Preferred Stock, payable on October 15 for shareholders of record on September 30.
FedEx (FDX, Financial) shares plummeted over 12% following its weaker-than-expected FQ1 profit and sales report, leading to a downward revision of its FY2025 outlook. The company cited soft revenue trends and a decline in priority volume as key factors.
Nike (NKE) shares surged over 8% after announcing Elliott Hill's return as president and CEO. Hill, a seasoned Nike veteran, will resume his duties on October 14, 2024, succeeding current CEO John Donahoe, who will retire on October 13.
Arq (ARQ) stock dropped 11% pre-market after pricing its underwritten public offering of 4.77 million shares at $5.25 each, a 14.9% discount to the last close.
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