Stock futures hovered near the flatline on Tuesday, after the S&P 500 and Nasdaq Composite pulled back from record highs.
Market Snapshot
At 8:00 a.m. ET, Futures tied to the broad market index were little changed, while Nasdaq-100 futures inched up 0.2%. Dow Jones Industrial Average futures lost 53 points.
Pre-Market Movers
China ADRs & ETFs fell in premarket trading. YINN fell 11%; CHAU fell 9%; Bilibili dropped 9%; XPeng fell 6%; Nio, JD.com fell 4%; PDD Holdings, Li Auto fell 3%.
NVIDIA Corp was down 0.1% in premarket trading after closing Monday down 2.6% as a Chinese regulator said it was investigating the company, the leading maker of artificial-intelligence chips, because of a suspected violation of anti-monopoly laws. Nvidia's revenue in China totaled $13.5 billion in the past four quarters, accounting for 12% of its global total, according to The Wall Street Journal.
Shares of Oracle were falling 6% after the enterprise software company reported fiscal second-quarter adjusted earnings that missed Wall Street forecasts. Revenue rose 8.6% to $14.06 billion but was below analysts' projections of $14.12 billion. The company said revenue at its cloud infrastructure unit rose 52% in the period on "record-level AI demand." CEO Chief Executive Safra Catz said she expects Oracle's cloud infrastructure unit to surpass $25 billion in revenue in fiscal 2025.
Tesla Motors was rising 1% to $392.45 in premarket trading. Morgan Stanley analyst Adam Jonas raised his price target on shares of the electric-vehicle maker to $400 from $310 and maintained an Overweight rating on the stock.
MongoDB Inc., the cloud-based database software company, fell 10% even after third-quarter adjusted earnings handily beat Wall Street forecasts as revenue rose 22% to $529.4 million and topped consensus of $497.7 million. The company anticipates sales in fiscal 2025 of $1.973 billion to $1.977 billion, up from a previous outlook of $1.92 billion to $1.93 billion. MongoB said it continues to invest in its "legacy app modernization and AI offerings." The company also announced Michael Gordon, its chief operating officer and chief financial officer, would be stepping down on Jan. 31.
C3.ai, Inc. posted a fiscal second-quarter loss of 6 cents a share, narrower than analysts' expectations that called for a loss of 16 cents. Revenue of $94.3 million topped estimates of $91 million. The company said it expects third-quarter revenue of between $95.5 million and $100.5 million, compared with consensus of $97.6 million. C3.ai also announced a new global alliance with Microsoft. Shares of the enterprise AI software company down 8%.
Home builder Toll Brothers reported fiscal fourth-quarter adjusted earnings that beat analysts' forecasts while revenue rose to $3.33 billion from $3.02 billion a year earlier and topped estimates of $3.17 billion. The company guided for first-quarter deliveries of 1,900 to 2,100 units, and fiscal 2025 deliveries of 11,200 to 11,600 units. In the year-earlier first quarter, Toll delivered 1,927 homes; it delivered 9,597 homes in fiscal 2024. The stock declined 3.2%.
Planet Labs Pbc was down 6% after the satellite imagery provider issued a fourth-quarter outlook that missed analysts' estimates. Planet Labs said it expects revenue in the period of $61 million to $63 million compared with estimates of $66.6 million. Third-quarter revenue rose 11% to $61.3 million but was below estimates of $63.1 million.
Norwegian Cruise Line was up 2.5% after the cruise operator was upgraded to Buy from Neutral at Goldman Sachs and the price target was boosted to $35 from $29, the Fly reported.
Shares of eBay fell 3%. Analysts at Jefferies reduced their recommendation on the online marketplace to Underperform from Hold and cut their price target to $52 from $60.
Market News
Google Unveils New Quantum Computer With Mind-Boggling Speed
Alphabet’s quantum computer needs just five minutes to solve a problem that would take supercomputers around 10 septillion years. Google’s next task: coming up with an actual use for all that theoretical power. Shares of the company rose 4%.
Google said its computer using the new Willow quantum chip beat the Frontier supercomputer in running a benchmark algorithm, doing in minutes what would take Frontier 10,000,000,000,000,000,000,000,000 years — far longer than the age of the universe. That’s exponentially faster than Google’s stated performance five years ago, when it said it could solve a 10,000-year task in minutes.
US Finalizes More Than $6.1 Bln Chips Subsidy for Micron Technology
The U.S. Department of Commerce has finalized a subsidy of more than $6.1 billion for memory chip maker Micron Technology to support the construction of several domestic semiconductor facilities, according to a White House statement on Tuesday.
The investment, unchanged from the amount originally announced in April, marks one of the largest government awards to chip companies under the U.S. CHIPS and Science Act.
It will fund factory projects in New York and Idaho and is expected to create at least 20,000 jobs by the end of the decade.
Global Airlines Forecast 2025 Growth Despite 'Unacceptable' Supply Chain Issues
Global airline body IATA forecast industry-wide 2025 revenue of more than a trillion dollars and record passenger numbers on Tuesday, despite what its chief Willie Walsh said were "unacceptable" difficulties in securing new planes.
Airlines around the world have seen their growth hampered by problems at Boeing and Airbus SE which have delayed jet deliveries. Without newer, more efficient planes, airlines say they cannot cut back fuel costs while flying more people.
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