5 things to know before the stock market opens Thursday
Traders in New York City work on the New York Stock Exchange floor on May 18, 20,22.
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The morning following the publication of the key earnings report by semiconductor giant, U.S. stock options rose Thursday Nvidia. The three largest stock indexes have all been trying to end a string of weekly declines. They are currently on track to achieve this before Thursday’s session. It is the Dow Jones Industrial AverageThe indices are up 2.8% week-over-week and in the middle of their first eight-week losing streak. These are the S&P 500Tech-heavy Nasdaq CompositeThey have each posted seven consecutive losses weeks. Both indexes are currently up by 1.98% and 0.7% respectively. Due to the Nasdaq’s 1.5% increase, stocks rose Wednesday
On the bond market the yield on the benchmark 10-year Treasury noteThe yield hovered just above 2.756% Thursday morning. It ticked slightly higher of 1 basis point. Prices and yields are opposite. A basis point equals 0.01%. After Wednesday’s publication of minutes from the Federal Reserve’s May meeting, the Treasury yields saw a muted movement.
Jensen Huang (President and CEO, Nvidia) speaks at an event held by the company on January 6, 2019, in Las Vegas.
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Nvidia shares fell by more than 4 percent in premarket trades, and the following day the California-based semiconductor company issued lighter-than-expected guidance for its current quarter. Colette Kress, Nvidia’s CFO, also stated that Nvidia will slow down its pace of hiring in order to control costs and reduce expenses given the difficult macroenvironment. Nvidia’s fiscal first quarter results showed per-share earnings at $1.36, and revenues of $8.29billion. This was higher than Wall Street expected for either of these metrics. As investors look for signs of strength in the technology industry, they were looking to Nvidia’s quarterly results. Investors are anticipating Nvidia’s results amid concerns about a wider economic slowdown. However semiconductors have been known as a highly cyclical business. Nvidia’s shares have fallen by 42% over the past year and are more than half off their November peak.
Frank Slootman is the CEO of Snowflake Inc., September 16th 2020.
SnowflakeThe morning trading session after the market closed saw shares drop by 14% the maker of data analytics software released earnings and guidance. Wall Street didn’t expect Snowflake would say that it anticipated a -2% adjusted operational margin for the current quarter. This may have contributed to the stock’s decline. StreetAccount analysts polled expected an adjusted margin in the range of 0.3% to 0.4%. Snowflake shares fell more than 65 percent from November peak, a clear sign that the Fed is tightening its policy.
On Tuesday, November 17, 2020, a pedestrian carried a Macy’s Inc.-branded shopping bag in front of the flagship store, located in New York’s Herald Square.
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Macy’sAfter reporting results for the fiscal first quarter and exceeding Wall Street’s expectations, Thursday saw the company raise its full year profit guidance. The premarket saw a 15% jump in shares of Macy’s department stores chain. Macy’s reported an adjusted $1.08 per Share on $5.35 Billion in revenue during fiscal Q1. Analysts surveyed by Refinitiv expected earnings per share of 82c on $5.33 Billion sales. Macy’s has just reported this earnings season. This is a mixed bag in the industry. Companies such as TargetAnd Abercrombie & FitchInvestors have been disappointed, NordstromAnd Williams-SonomaExceeded all expectations.
AppleThere are plans to raise the salaries of corporate and retail employees later in this year. the iPhone maker said late Wednesday. As companies fight to keep talent, other technology titans like Google parent Alphabet and Microsoft have recently adjusted their compensation structures. Inflation in America is at its highest since the late 1980s. Workers are also facing the most severe economic challenges. Apple’s Wednesday announcement stated that the U.S. Retail Workers will now earn $22 an Hour, up from $20. Some stores will also receive higher wages. Apple employees have started unionization efforts at several Apple stores throughout the country, which has led to a rise in retail wages.
The photo shows the logo of VMware displayed on a screen for a smartphone.
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BroadcomIntents to Buy VMwareThe companies made the announcement Thursday morning in what was one of the most significant technology acquisitions ever. According to Broadcom’s Wednesday closing session at $531.63 the cash-and-stock deal is estimated at approximately $61billion. Broadcom will diversify its business away from designing and selling semiconductors to enter the high-margin enterprise software market. Broadcom has made multiple billion-dollar acquisitions over the past two years and expects that the VMWare deal will close during its fiscal 2023. The company is currently at its third quarter 2022.
Editor’s Note. CNBC’s Five Things to Know will launch Friday.