U.S. stock index futures declined on Thursday as growth stocks took a hit from a jump in Treasury yields after the Federal Reserve held interest rates steady while hinting at another hike this year.
Market Snapshot
At 7:50 a.m. ET, Dow e-minis were down 179 points, or 0.52%, S&P 500 e-minis were down 33.25 points, or 0.75%, and Nasdaq 100 e-minis were down 156.5 points, or 1.03%.
Pre-Market Movers
Broadcom (AVGO) - Broadcom was falling 6.4% in premarket trading after the Information reported Alphabet ‘s Google has discussed dropping Broadcom as a supplier of artificial intelligence as early as 2027.
FedEx (FDX) - FedEx shares rose 5% in premarket trading after the shipping company reported fiscal first-quarter earnings that beat analysts’ estimates and an increase in operating margins amid cost-cutting measures. FedEx also boosted its fiscal-year guidance, saying it expects adjusted profit of $17 to $18.50 a share, up from its previous forecast of $16.50 to $18.50. Rival United Parcel Service ( UPS ) was up 0.9%.
Cisco (CSCO), Splunk (SPLK) - Cisco Systems Inc. agreed to buy cybersecurity company Splunk Inc. in a deal valued at about $28 billion, creating one of the world’s largest software companies. Cisco shares dropped about 5% while Splunk jumped 20% in premarket trading.
Klaviyo (KVYO) - Klaviyo was down 2.9% to $31.82 in premarket trading after the Boston-based marketing software company opened for trading Wednesday at $36.75, up 23% from the initial offering price of $30, and closed at $32.76, up 9.2%.
CrowdStrike Holdings (CRWD) - CrowdStrike Holdings was rising 2.5% in premarket trading after the cybersecurity company announced at a briefing at Fal.Con that it was raising its new target model of subscription gross margin to 82%-85% of revenue, up 400 basis points from its previous target, and boosting its operating margin target to 28% to 32%, up 900 basis points. The company said the timeframe for meeting those targets was three to five years.
Grab Holdings (GRAB) - DBS Bank upgraded Grab Holdings to Buy from Fully Valued with a $4.29 price target, according to The Fly. While Grab stock dropped 1.2% in premarket trading.
Safe & Green Holdings (SGBXV) - Safe & Green Holdings stock soared 255% in premarket trading Thursday after Jumping 20% Wednesday. Safe & Green Holdings, a leading developer, designer, and fabricator of modular structures for residential, commercial, and point-of-care medicine, provided a further update on the planned spin-off of Safe & Green Development Corp, the Company’s real estate development subsidiary, and the planned distribution of approximately 30% of the outstanding shares of SG DevCo common stock to SG Holdings’ stockholders on a pro rata basis (the "Distribution").
Travere Therapeutics Inc. (TVTX) - Travere Therapeutics shares dropped 34% premarket on Thursday after the company released data from a late-stage study of Filspari in IgA nephropathy, a rare kidney disease.
KB Home (KBH) - KB Home posted better-than-expected fiscal third-quarter earnings and raised its fiscal-year revenue forecast. Chairman and Chief Executive Jeffrey Mezger said in a statement that demand was “steady” throughout the third quarter “even though mortgage interest rates rose as the quarter progressed.” The stock fell 3.4% in after-hours trading Wednesday.
D.R. Horton (DHI) - D.R. Horton named Paul J. Romanowski as president and chief executive, effective Oct. 1. He was named co-chief operating officer of the home builder in October 2021. As CEO, Romanowski will be replacing David V. Auld, who will transition to executive vice chairman of the board. Auld has served as president and CEO since October 2014. The stock declined 0.8%.
Market News
Fed Leaves Rates Unchanged, Signals Another Hike This Year
The Federal Reserve left its benchmark interest rate unchanged while signaling borrowing costs will likely stay higher for longer after one more hike this year.
The US central bank’s policy-setting Federal Open Market Committee, in a post-meeting statement published Wednesday in Washington, repeated language saying officials will determine the “extent of additional policy firming that may be appropriate.”
Fed Chair Jerome Powell said officials are “prepared to raise rates further if appropriate, and we intend to hold policy at a restrictive level until we’re confident that inflation is moving down sustainably toward our objective.”
Unprofitable China EV Maker Nio Unveils Phone Pitched at Drivers
While Chinese tech companies have long harbored ambitions to move into the electric car industry, EV upstart Nio Inc. has gone the other way — on Thursday releasing its first mobile phone.
The unprofitable automaker is targeting its loyal customer base with the phone, which will sync with Nio cars to act as a key fob, view information such as battery charge, and control functions like self-parking and the in-cabin infotainment system. The Android-based handset will be priced from 6,499 yuan ($890) — the same as Huawei Technologies Co.’s latest flagship Mate 60 Pro — Nio said as it unveiled the phone at its ‘Innovation Tech Day’ in Shanghai.
“We want our phone to connect seamlessly with the car, and bring a better user experience to our car owners,” founder and Chief Executive Officer William Li said at the event. The phone will be sold via Nio’s online store, though initial deliveries may be limited due to supply constraints.
OpenAI Says Next Iteration of Dall-E Coming in October
OpenAI will release a new version of it popular image creation tool, Dall-E, the startup said in a blog post on Wednesday.
The new tool “represents a leap forward in our ability to generate images” the company wrote. OpenAI also said that the latest version of the tool, which will be called Dall-E 3, will have more safeguards in place to prevent the creation of harmful content, and that the company was experimenting with ways to identify content that was created with artificial intelligence.
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