Stock index futures traded in the red on Thursday after Adobe issued weaker than expected outlook.
Market Snapshot
At 8:05 a.m. ET, Futures tied to the Nasdaq 100 slipped 0.5%. S&P 500 futures were down about 0.3%. Dow Jones Industrial Average futures fell 44 points, or about 0.2%.
Pre-Market Movers
Tesla Motors shares were up 0.2% in premarket trading, after rising Wednesday by 5.9% to $424.77, an all-time closing high. During the session, the stock traded as high as $424.88, an intraday record high. Shares of the electric-vehicle maker have risen for six consecutive consecutive sessions, gaining 21% over the period. They have gotten a boost -- jumping 69% -- since Donald Trump was elected U.S. president on Nov. 5 -- investors believe CEO Elon Musk's relationship with Trump will benefit the EV company.
Alphabet also set a record closing high, ending Wednesday at $195.40, up 5.5%. The parent company of Google announced Gemini 2.0, an update to the company's flagship artificial-intelligence model. Alphabet said developers will be the first to have access to Gemini 2.0, with general availability in January. In premarket trading, Alphabet fell 0.3%.
China ETFs and ADRs pared gains in premarket trading. Fangdd fell 5%; NIO, XPeng fell 1%; YINN, PDD fell 0.5%.
Destiny Tech100 Inc rallied 7% in premarket trading on Thursday after soaring 8% on Wednesday.
Adobe tumbled 11% after the software company and creator of apps such as Photoshop and Illustrator posted fiscal fourth-quarter adjusted earnings and revenue that beat analysts' estimates but issued first-quarter and fiscal-year revenue guidance below expectations. Adobe anticipates revenue in the first quarter of between $5.63 billion to $5.68 billion, below consensus of $5.72 billion. The company expects fiscal 2025 revenue of between $23.3 billion and $23.6 billion, which is below estimates of $23.8 billion.
Uber rose 4% in premarket trading after shares of the ride-hailing company declined 5.8% on Wednesday following an announcement from General Motors that it would be scrapping its Cruise robotaxi program. Uber had announced in August that would it be partnering with GM to bring Cruise autonomous vehicles to the Uber platform. The partnership was expected to launch in 2025.
Nordson, the maker of adhesives and other industrial products, said it expects fiscal first-quarter adjusted earnings of $1.95 to $2.15 a share, below consensus of $2.26, on revenue of $615 million to $655 million, below forecasts of $681.9 million. Shares declined 6%.
Earnings reports are expected after the closing bell Thursday from Broadcom, Costco, and Restoration Hardware.
Broadcom was down 1% ahead of fiscal fourth-quarter earnings from the semiconductor company. Broadcom stock has risen 64% this year, getting a lift from spending on artificial-intelligence data centers. Shares rose 6.6% on Wednesday on a report that Broadcom will make custom AI accelerator chips for Apple.
Market News
China Ends Planning Meeting with Vows to Stabilize Its Economy, but Gives No Details on Stimulus
Chinese leaders wrapped up a two-day planning meeting in Beijing on Thursday with pledges to take a more proactive approach in pepping up the world's second-largest economy, but gave no details on new stimulus measures.
A state-run CCTV report on the annual meeting mainly reiterated a strategy outlined earlier in the week after a session of the ruling Communist Party’s powerful Politburo at which leaders pledged to loosen monetary policy and adopt a more proactive fiscal approach.
The CCTV report said China would raise its fiscal deficit and continue to issue “super-long” government bonds to help finance additional spending. It gave no details on the amount of money to be spent or size of the deficit.
Nvidia Denies Rumours It Will Cut Supplies to China
NVIDIA Corp said recent social media posts alleging the company would cut supplies to China were false, according to a company post on Chinese social media.
Nvidia said that China was an important market and it would continue to provide high-quality products and services to Chinese customers.
Nio, Behind on Growth Targets, Aims to Tighten Cost Control
Chinese electric vehicle (EV) maker NIO Inc. will seek to improve efficiency and cost control as it seeks to spur sales growth that is two years behind schedule, its CEO said on Thursday.
William Li told reporters at an event in Shanghai that it will also start production at its third factory in the second half of next year, and that it aimed to achieve monthly deliveries of 20,000 cars from its second, Onvo brand, by March 2025.
The company has had 30-40% growth in the last three years but that was not satisfactory, he said. Li said last month the company aims to double sales in 2025 from this year.
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