S&P 500 futures are down 10 points, Nasdaq 100 futures are down 55 points, and Dow Jones Industrial Average futures are down 80 points. This drop comes after consolidation activity on Tuesday, with declines in some large-cap stocks influencing the market.
The MBA Mortgage Applications Index rose by 0.5%, with refinance applications falling by 2% and purchase applications increasing by 2%. Investors are watching the October Consumer Price Index (CPI) report, expected at 8:30 ET, for its impact on the Treasury market and potential implications for the Federal Reserve's interest rate decisions.
Treasury yields remain stable ahead of the CPI report. The 10-year yield is down one basis point to 4.42%, while the 2-year yield is up one basis point to 4.35%.
Today's News
Amgen (AMGN, Financial) experienced a notable recovery in its stock price after addressing concerns over its obesity candidate, MariTide. The company clarified that there is no association between MariTide and bone mineral density changes, countering previous reports of a 4% loss in bone density linked to the drug. This reassurance came ahead of the anticipated Phase 2 trial results, causing Amgen shares to rebound significantly in premarket trading.
Flutter Entertainment (FLUT, Financial) announced a substantial share buyback program on the NYSE, with an initial tranche worth up to $350 million. This move is part of a broader $5 billion buyback strategy approved by the board. The buyback is set to commence on November 14 and will conclude by March 31, 2025, signaling confidence in the company's financial health and future prospects.
Cybersecurity stocks rallied as CyberArk (CYBR, Financial) reported impressive third-quarter results, surpassing expectations with an adjusted earnings per share of $0.94 and a 25.6% revenue increase. The positive performance lifted CyberArk shares by 7% and had a ripple effect on other cybersecurity firms, including Fortinet (FTNT, Financial), Palo Alto Networks (PANW, Financial), and Check Point Software (CHKP, Financial), which also saw gains.
Super Micro Computer (SMCI, Financial) disclosed delays in filing its quarterly report due to ongoing investigations and the need for a new accounting firm. The company is working to complete its 2024 Form 10-K and Q1 2025 Form 10-Q, aiming to resolve the issues raised by its former auditor, Ernst & Young, and stabilize its reporting processes.
Spirit Airlines (SAVE, Financial) faces potential bankruptcy as Frontier Group (ULCC) reportedly withdrew its acquisition bid. This development comes amidst rising airfares, which increased by 4.1% year-over-year in October, although some relief is expected during the holiday season with lower travel costs compared to last year.
Google (GOOG) and Amazon-backed Anthropic are encountering challenges with their large language models, facing plateauing performance and data limitations. These issues highlight the complexities of advancing AI technology, as companies like OpenAI also grapple with similar hurdles in model development.
Fortinet (FTNT, Financial) received a price target increase from Citi, reflecting confidence in its upcoming product refresh and operational efficiencies. The cybersecurity firm is expected to benefit from a strategic end-of-service catalyst, positioning it for continued growth in the competitive tech landscape.
Tesla (TSLA, Financial) announced a recall of 2,431 Cybertruck vehicles due to a drive inverter fault that could lead to a loss of drive power. The recall affects certain 2024 models, and the company plans to replace the faulty component at no cost to customers, addressing potential safety concerns.
SoftBank's telecom unit will utilize Nvidia's (NVDA, Financial) Blackwell chips to build Japan's most powerful supercomputer, signifying a major advancement in AI and computing capabilities. This collaboration underscores SoftBank's commitment to leading AI development and leveraging cutting-edge technology for diverse applications.
GuruFocus Stock Analysis
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