Nasdaq and S&P 500 futures jumped on Thursday as Nvidia extended its rally, while investors returning from the Juneteenth holiday awaited economic data and commentary from Federal Reserve officials to firm up bets on interest rate cuts this year.
Market Snapshot
At 8:20 a.m. ET, Dow e-minis were up 16 points, or 0.04%, S&P 500 e-minis were up 19 points, or 0.34%, and Nasdaq 100 e-minis were up 99.5 points, or 0.49%.
Pre-Market Movers
Nvidia was rising 3.5% in premarket trading after the leading maker of chips for artificial intelligence applications on Tuesday became the most valuable listed company. Nvidia’s valuation of $3.34 trillion just topped Microsoft’s $3.33 trillion and Apple’s value of $3.28 trillion. Nvidia shares closed Tuesday up 3.5% at a record high of $135.58.
Dell Technologies rose over 3% while Super Micro Computer rallied 5% in premarket trading on Thursday after Elon Musk said the duo would provide servers for the supercomputer that his artificial intelligence startup xAI is building.
Trump Media & Technology Group declined 11% in premarket trading, extending sharp losses from Tuesday, after the company, the parent of former President Donald Trump’s Truth Social platform, said the Securities and Exchange Commission had signed off on its registration statement and on the resale of shares and warrants. The selling shareholders can publicly resell the securities and the warrants are eligible to be exercised for cash, putting further pressure on the stock, however. The stock has fallen nearly 36% in June.
Meta Platforms was in focus on Thursday as KeyBanc Capital Markets reiterated its Overweight rating on the tech giant and boosted its price target, citing a "meaningful uptick" in ad prices. Shares rose 1% in premarket trading.
Bilibili's U.S.-listed shares gained over 8% in premarket trading as investors anticipate a potential new earnings driver following better-than-expected reception to its latest mobile game. The Shanghai-based videogame and social-media company launched simulation game "San Guo: Mou Ding Tian Xia," whose app ranked third in Apple's iOS game downloads on the first day of the launch, according to data provider Sensortower.
KB Home’s second-quarter earnings beat analysts’ estimates and home orders in the period rose 2% to 3,997. The home builder estimates fiscal-year housing revenue of $6.7 billion to $6.9 billion, with an average selling price of $485,000 to $495,000. Its prior outlook called for housing revenue in the range of $6.5 billion to $6.9 billion. The stock was rising 1.9%.
A merger inquiry into Hewlett Packard Enterprise’s acquisition of Juniper Networks has been opened by Britain’s competition regulator. The United Kingdom’s Competition and Markets Authority said Wednesday it opened an inquiry to review whether the merger would hurt competition, and it will solicit comments from the public until July 3. The CMA’s initial decision will come by Aug. 14. Under the deal, announced in January, HPE would acquire Juniper for about $14 billion. HPE shares were up 2.6%.
Accenture reported fiscal third-quarter earnings of $3.13 a share, 3 cents below analysts’ estimates. The professional services company said that so far this year generative AI new bookings have totaled $2 billion. Shares were up 6.2%.
Darden Restaurants earned $2.65 a share from continuing operations in its fiscal fourth quarter, higher than analysts’ forecasts of $2.61. The owner of Olive Garden and Ruth’s Chris Steakhouse restaurants said it expects fiscal 2025 total sales of $11.8 billion to $11.9 billion compared with expectations of $11.94 billion. The stock was up 1.3%.
Market News
Eli Lilly Broadens Crackdown on Fake and Compounded Zepbound
Eli Lilly & Co. broadened its effort to crack down on fake and off-brand versions of hit obesity drug Zepbound, saying it has filed more lawsuits against companies selling compounded versions of the treatment.
The drugmaker filed a handful of new lawsuits on Thursday against medical spas, wellness centers and other businesses, claiming they had referred to their products using Lilly’s brand names of Mounjaro and Zepbound. Lilly doesn’t provide its drug ingredients to compounders, the company said in a letter to patients.
McDonald's $5 Value Meal Intensifies a Fast Food Price War
McDonald’s Corp.’s US chief says the company is ready for a fight.
And in order to win, the burger chain is pulling out one of the most potent weapons in its arsenal: The value meal. It’s all part of a bid to lure back penny-pinching customers who have cut back on fast food after flocking to the Golden Arches in recent years.
Bank of England Keeps Rates at 5.25% Ahead of UK Election
The Bank of England kept its main interest rate unchanged at a 16-year high of 5.25% on Thursday ahead of a July 4 election, but some policymakers said their decision not to cut rates was now "finely balanced".
The BoE's Monetary Policy Committee voted 7-2 to keep rates on hold, in line with economists' expectations in a Reuters poll. Deputy Governor Dave Ramsden and external MPC member Swati Dhingra remained the only policymakers to support a cut to 5%.
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