The S&P 500 futures are up 15 points, Nasdaq 100 futures are up 50 points, and Dow Jones Industrial Average futures are up 140 points, indicating a higher open for the major indices. Gains in some large companies, including NVIDIA (NVDA, Financial), are contributing to the positive outlook ahead of NVIDIA's earnings report this afternoon.
Treasuries are weaker today after closing higher yesterday due to geopolitical developments. The 10-year yield is up six basis points to 4.42%, and the 2-year yield is up three basis points to 4.30%.
The People's Bank of China has kept its one-year and five-year loan prime rates unchanged, as expected.
In the U.S., the weekly MBA Mortgage Applications Index rose by 1.7%, with purchase applications up 2% and refinance applications also up 2%.
Today's News
Nvidia (NVDA, Financial) is set to report its Q3 earnings, with investors eagerly awaiting results amid high expectations due to the AI boom. The company's performance has been pivotal in market movements, and its stock surged nearly 5% in anticipation. Nvidia's report is expected to highlight continued demand for its AI chips, which have significantly driven its growth in 2023.
Target Corporation (TGT, Financial) faced investor backlash after reporting a disappointing Q3 profit and issuing a cautious outlook for the holiday season. The retail giant saw its comparable sales increase by just 0.3%, missing analyst expectations. Target's operating margin and gross margin rates also declined, reflecting higher costs in digital fulfillment and supply chain management.
MicroStrategy (MSTR, Financial) announced an upsized private offering of $2.6 billion in convertible senior notes due 2029, allowing for potential conversion into cash or shares. The notes, initially set at $1.75 billion, were increased due to demand, with an option for an additional $400 million. This move is part of MicroStrategy's broader strategy involving its class A common stock.
NIO (NIO, Financial) reported a record number of EV deliveries in Q3, up 11.6% year-over-year, but its Q4 outlook fell short of expectations, causing shares to dip. Despite increased revenue and improved vehicle margins, the company's adjusted net loss widened, impacting investor sentiment.
ZIM Integrated (ZIM, Financial) declared a total dividend of $3.65 per share, including a special dividend, following a robust earnings beat. The shipping company reported a significant increase in GAAP EPS and revenue, leading to a positive market reaction and a 7% rise in its stock.
Williams-Sonoma (WSM, Financial) outperformed with its Q3 earnings, beating revenue, comparable sales, and EPS estimates. The retailer's guidance for the holiday quarter was also strong, and it announced a new $1 billion stock buyback, underscoring its operational improvements and margin strength.
Uber Technologies (UBER, Financial) introduced new features for the holiday season, including Uber XXL for larger groups and extra trunk space, and UberX Share for a more affordable travel option. These services aim to enhance customer experience during peak travel times.
Apple (AAPL, Financial) is seeking to dismiss a DOJ case alleging it dominates the smartphone market unlawfully. The tech giant argues that its restrictions are reasonable and necessary for innovation, as it faces antitrust scrutiny alongside other major tech firms.
Qualcomm (QCOM, Financial) revealed plans to diversify away from the smartphone market, aiming for 50% non-smartphone revenue by 2030. This strategy, discussed at its investor event, seeks to leverage growth in IoT and automotive sectors, despite recent stock fluctuations.
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