U.S. stock index futures rose on Wednesday as investors awaited quarterly results from Nvidia, which are expected to be pivotal in sustaining the AI behemoth's record rally this year.
Market Snapshot
At 7:45 a.m. ET, Dow E-minis rose 122 points, or 0.28%, S&P 500 E-minis were up 10.5 points, or 0.18%, and Nasdaq 100 E-minis were up 45.5 points, or 0.022%.
Pre-Market Movers
Nvidia - Nvidia was up 0.6% ahead of third-quarter earnings from the leading maker of chips for AI applications. Wall Street expects earnings in the period of 75 cents a share, up from 40 cents a year earlier, and revenue to rise to $33.15 billion from $18.12 billion. A particular focus for investors will be on how quickly the company can ramp up sales of its Blackwell AI chips. Coming into Wednesday, Nvidia shares have risen 197% this year, including gains of 4.9% on Tuesday. “While expectations for Nvidia are high heading into its latest earnings report, we expect the company to report another strong quarter and live up to these high expectations, as the demand for the company’s chips remains incredibly strong during a time when companies of all sizes are spending money on AI,” said Clark Bellin, president and chief investment officer of Nebraska-based Bellwether Wealth.
Super Micro Computer - Super Micro Computer was down 2.7% in premarket trading following the stock’s surge of 31% on Tuesday after the server makersubmitted a plan to remain listed on the Nasdaq exchange.
NIO - U.S.-listed shares of NIO fell 2.6% after the Chinese electric-vehicle maker reported a third-quarter loss that was wider than a year earlier as revenue fell 2.1% to 18.67 billion yuan, lower than analysts’ expectations.
Target - Target sank 18% in premarket trading after the retailer reported third-quarter earnings of $1.85 a share, coming in well below analysts’ expectations for $2.30. Fourth-quarter earnings will range between $1.85 and $2.45 a share, compared with analysts’ forecasts for $2.65, the retailer said.
Destiny Tech100 - SpaceX achieved new feats during the sixth major test launch of its Starship system but nixed an eagerly anticipated midair “catch” of the rocket’s booster as President-elect Donald Trump looked on in South Texas. Destiny Tech100 is a fund that offers retail investors access to high-profile private startups, and SpaceX is Destiny Tech100's largest holding, making up about 37.6% of the portfolio. Destiny Tech100 plunged 17% in premarket trading.
Comcast - Comcast is expected to announce Wednesday aplan to spin off its NBCUniversal cable TV networks, The Wall Street Journal reported, citing people familiar with the situation. The company, the Journal reported, will spin off MSNBC, CNBC, USA, Oxygen, E!, Syfy and Golf Channel, assets that generated about $7 billion in revenue in the 12-months ended Sept. 30. Comcast shares were up 2.7%.
Keysight - Keysight Technologies jumped 9.8% after fiscal fourth-quarter earnings at the test-equipment maker topped analysts’ expectations. On an adjusted basis, Keysight earned $1.65 a share in the period, better than estimates of $1.57. Revenue declined 1.8% to $1.29 billion but beat estimates of $1.26 billion. For its fiscal first quarter, the company said it anticipates adjusted earnings of $1.65 to $1.71 a share on revenue of $1.27 billion to $1.29 billion. Wall Street has been forecasting adjusted earnings of $1.57 a share on revenue of $1.24 billion.
Netflix - Netflix rose 0.8% in premarket trading. The stock closed up 2.9% to a record high of $871.32 on Tuesday after the streaming giant announced the boxing event betweenYouTube personality Jake Paul and former heavyweight champion Mike Tysondrew 108 million global viewers. Netflix said the boxing match was the most-streamed global sporting event ever.
Delta Air Lines - Delta Air Lines fell 0.6% after the carrier reiterated its fourth-quarter outlook during its investor day. Delta anticipates earnings in the period of $1.60 and $1.85 a share. For fiscal 2025, Delta said it expects capacity growth of 3% to 4%.
Powell - Powell Industries fell 13.6%. The company, which provides complex packaged engineering solutions for large-scale industrial, energy, municipal and transportation clients, reported fiscal fourth-quarter earnings that jumped 74% from a year earlier and revenue that surged 32% to $275 million but new orders in fiscal 2024 fell to $1.1 billion from $1.4 billion in fiscal 2023.
Dolby Laboratories - Fiscal fourth-quarter earnings of 61 cents a share at Dolby Laboratories, the audio and imaging technology developer, beat Wall Street estimates of 45 cents. Revenue in the period rose to $305 million from $291 million a year earlier. Shares jumped 11.4%.
ZIM Integrated Shipping Services - ZIM Integrated Shipping Services Ltd. saw its shares surge 9% after the container shipping company reported third quarter earnings that beat analyst expectations and raised its full-year guidance.
La-Z-Boy - Fiscal second-quarter profit and revenue at La-Z-Boy beat analysts’ estimates and shares of the furniture maker rose 4.9%. The company acknowledged, however, that “furniture and home furnishings related spending continues to be soft” but said it was “outperforming the industry in a sustainable manner.”
Market News
NIO Reports Q3 Revenue Misses Estimates and a Bigger-Than-Expected Loss
Chinese premium electric-car maker Nio Inc. reported revenue that missed estimates and a bigger-than-expected loss as it continues to weather a bruising price war.
Revenue rose to 18.7 billion yuan ($2.6 billion) in the three months ended Sept. 30 after the company delivered a record 61,855 cars in the quarter, still short of analyst estimates of 19.2 billion yuan. It reported a 4.4 billion yuan adjusted net loss for the quarter, according to a statement Wednesday, more than the 4.3 billion yuan projected by analysts.
Revenue from vehicle sales saw a slight decrease over the third quarter of 2023, mainly due to changes in the product mix lowering the average selling price, which was partially offset by the increase in delivery volume. Nio’s gross margin grew to 10.7% from 8% a year earlier, roughly in line with estimates.
Bitcoin Breaches $94,000 for the First Time
Bitcoin rose to a record high above $94,000 as a report that Donald Trump's social media company was in talks to buy crypto trading firm Bakkt added to hopes of a cryptocurrency-friendly regime under the incoming Trump administration.
Bitcoin, the world's biggest and best-known cryptocurrency, has more than doubled this year. It was last at $92,104 in Asian hours on Wednesday, having touched a record high $94,078 just toward the end of the previous session.
Cryptocurrencies have soared since the Nov. 5 U.S. election as traders bet President-elect Trump's promised support for digital assets would lead to a less restrictive regulatory regime and inject some life back into bitcoin after a listless few months.
SpaceX Launches Starship Rocket as Trump and Musk Look On
SpaceX achieved new feats during the sixth major test launch of its Starship system but nixed an eagerly anticipated midair “catch” of the rocket’s booster as President-elect Donald Trump looked on in South Texas.
SpaceX’s launch system, comprised of the booster and Starship upper spacecraft, cleared the tower shortly after 4 p.m. local time on Tuesday. But minutes into the flight, SpaceX scrapped plans to attempt to catch the booster with giant mechanical arms — referred to as “chopsticks” — which the company completed during its previous flight. The booster, dubbed Super Heavy, was still able to perform a controlled landing in the ocean.
“It was pretty epic on attempt one, but the safety of the teams and the public and the pad itself are paramount,” SpaceX engineer Kate Tice said on a live broadcast. “So we are accepting compromises.”
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