Pre-Bell|Stock Futures Edge Higher; Tesla Stock Jumps 5%

Tiger Newspress2022-12-29

U.S. stock index futures gained on Thursday ahead of labor market data that will give clues on future interest rate hikes, while Tesla extended gains after top boss Elon Musk told staff to ignore the "stock market craziness".

Market Snapshot

At 7:50 a.m. ET, Dow e-minis were up 80 points, or 0.24%, S&P 500 e-minis were up 16.25 points, or 0.43%, and Nasdaq 100 e-minis were up 62.75 points, or 0.58%.

Pre-Market Movers

Tesla – Tesla nearly 5% in the premarket after posting its first rise in eight sessions Wednesday, softening the blow to its stock in what will still be the worst year ever for Tesla shares.

Cal-Maine Foods – Cal-Maine slid 4.9% in premarket trading after its quarterly earnings came in below Wall Street forecasts. Cal-Maine reported record sales for the quarter as an avian flu outbreak continued to limit the supply of eggs, driving prices sharply higher. The company also said there were no positive tests for avian flu at any of its production facilities, as of Wednesday.

Southwest Airlines – Southwest remains on watch as the airlinestruggles to recoverfrom issues that caused thousands of flight cancellations over the past week. The stock is fractionally higher this morning after falling 11% over the past two days.

Lockheed Martin – Lockheed Martin’s Sikorsky unit is challenging the awarding of a U.S. Army helicopter contract toTextron(TXT). Sikorsky President Paul Lemmo said the various proposals for the $1.3 billion contract were not evaluated properly.

ImmunoGen – Immunogen fell 2.7% in the premarket after the biotech company announced that Chief Financial Officer Susan Altschuller would not return from her Family and Medical Leave Act hiatus. Vice President and Chief Accounting Officer Renee Lentini was named interim CFO.

General Electric – GE spin-off GE HealthCare Technologies will join the S&P 500 when it begins trading as a separate public company on Jan. 4. GE HealthCare will replaceVornado Realty Trust(VNO), which will move to the S&P MidCap 400. Vornado will replace logistics companyRXO(RXO), which will move to the S&P SmallCap 600. GE HealthCare — trading on a when-issued basis — rose 1% in the premarket, while Vornado was marginally lower and RXO jumped 3.3%.

Apple – Apple is up 1% in premarket trading after closing Wednesday at a 1-1/2 year low. Apple is down 29% for 2022.

Market News

TSMC Starts Volume Production of Most Advanced Chips

The primary chipmaker for Apple Inc. began bulk production of advanced 3-nanometer chips at its Tainan campus in southern Taiwan.

On Thursday, TSMC Chairman Mark Liu expressed confidence in the longer-term outlook for chip demand and promised to build future generations of 2nm chips in the Taiwanese cities of Hsinchu and Taichung.

Goldman Sachs CEO Expects Layoffs in First Half of January

The CEO of Goldman Sachs Group Inc. expects to cut jobs in early January, according to a report late Wednesday.

In his annual year-end letter to staff, Goldman Chief Executive David Solomon said “We are conducting a careful review and while discussions are still ongoing, we anticipate our headcount reduction will take place in the first half of January,” according to Bloomberg News.

Facebook Parent Meta Buys Belgian-Dutch Company Luxexcel

Meta, the parent company of American tech giant Facebook, has acquired the Belgian-Dutch company Luxexcel, according to information from Belgian newspaper De Tijd and later confirmed by Meta on Wednesday.

Luxexcel specialises in 3D printing technology which is used for complex glasses lenses. “We are delighted that the Luxexcel team has joined Meta. This extends the partnership between the two companies,” Meta stated.

Kala Pharmaceuticals Stock Jumps as FDA Accepts Drug Application For Eye Condition

Shares of Kala Pharmaceuticals Inc. shot up 20% in premarket trading, after the biopharmaceutical company said the Food and Drug Administration accepted its investigational new drug (IND) application for KPI-012, its treatment of persistent corneal epithelial defect (PCED).

NIO ET5 wait time reduced to 9-11 weeks

The wait time for the ET5, the least expensive model in NIO's product array, has been further reduced, information from the company's mobile app shows.

Consumers who lock in their ET5 orders now are expected to get deliveries in 9-11 weeks, down from 10-12 weeks previously.

Alibaba Names New CTO, While CEO Steps in As Interim Cloud Head

Alibaba Group has made several changes to its top management team, swopping out its CTO and giving its chairman and CEO Daniel Zhang an additional role as acting president of its cloud business. The shuffles amongst the top seats are an annual routine, says the Chinese tech giant.

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