Futures for the Nasdaq advanced on Wednesday as Nvidia and other chip stocks continued to regain momentum, while those tracking the Dow edged lower ahead of a key inflation reading this week.
Market Snapshot
At 7:50 a.m. ET, Dow e-minis were down 98 points, or 0.25%, S&P 500 e-minis were down 2.5 points, or 0.05%, and Nasdaq 100 e-minis were up 20.25 points, or 0.10%.
Pre-Market Movers
Nvidia - Nvidia was up 2.4% in premarket trading after jumping 6.8% on Tuesday and gaining $196 billion in market value, lifting Nvidia’s market cap back above $3 trillion. Shares of the chip maker had declined 13% over the preceding three trading sessions, sending the stock into correction territory.
Nvidia will convene its annual shareholder meeting on Wednesday, with investors set to vote on executive compensation, board re-election, and ratifying an accounting firm.
Rivian - Rivian Automotive surged 40% after it was announced that Volkswagen would be investing an initial $1 billion in the electric-vehicle company and an additional $4 billion under terms of the agreement. The two companies said they will form a joint venture “to create next-generation electrical architecture and best-in-class software technology.” Rivian CEO RJ Scaringe said the partnership would help “secure our capital needs for substantial growth.”
Lucid, Aptiv - Rivian’s smaller rival Lucid Group rose 4.8% in premarket trading. Auto-parts supplier Aptiv, meanwhile, was falling 6.6% after being downgraded to Underweight from Neutral by analysts at Piper Sandler following news of the Rivian and Volkswagen partnership.
Micron Technology - Micron Technology was rising 3% ahead of its fiscal third-quarter earnings report, scheduled for after the closing bell Wednesday. Wall Street expects Micron to post adjusted profit of 48 cents a share on revenue of $6.67 billion. The results should reflect improving demand for PCs and smartphones, as well as surging demand tied to artificial intelligence.
Apple - Rosenblatt upgraded Apple to Buy from Neutral with a price target of $260, up from $196. The shares gained 0.9% in premarket trading.
FedEx - FedEx was rising 13.7% in premarket trading after the shipping and logistics company reported fiscal fourth-quarter earnings that topped analysts’ expectations and said it anticipates revenue growth in fiscal 2025 in the low-to-mid single digit percentage range. The company sees fiscal-year adjusted earnings of between $20 and $22 a share. Analysts were projecting $20.92. The company also said it was reviewing the operations of its freight business.
Whirlpool - German engineering group Robert Bosch GmbH is weighing a bid for U.S. appliances manufacturer Whirlpool, according to three people familiar with the matter, a move that would boost its position in the white goods market. Whirlpool shares jumped 20% in premarket trading.
Faraday Future - Faraday Future shares rallied 10% in premarket trading Wednesday. The shares tumbled 18.7% on Tuesday after the electric vehicle (EV) company announced plans to regain compliance with Nasdaq listing rules.
Southwest Airlines - Southwest Airlines fell 3.2% after the carrier said it expects operating revenue per available seat mile in the current second quarter to fall between 4% and 4.5%, wider than previous guidance that called for a decline of 1.5% to 3.5%. “The reduction in the company’s RASM expectations was driven primarily by complexities in adapting its revenue management to current booking patterns in this dynamic environment,” Southwest said in a filing. Despite the lowered expectations, Southwest said it continues to “expect an all-time quarterly record for operating revenue” in the period.
Chipotle Mexican Grill - Chipotle Mexican Grill was down 0.2% to $65.50 in premarket trading. The company’s 50-to-1 stock split went into effect after the close of trading Tuesday. It’s the first stock split since the shares debuted on the New York Stock Exchange nearly two decades ago.
General Mills - General Mills fell 4% after reporting fiscal fourth-quarter adjusted earnings that topped analysts’ estimates but revenue that missed expectations.
NetEase - NetEase rallied 3.2% in premarket trading after China approved more online games in June when it gave the nod to 104 new video games from mainland developers, after fewer than 100 titles each were okayed in previous two months.
Philips - Italy’s billionaire Agnelli family raised its holding in Royal Philips NV, giving it a stake worth $4.19 billion, in a signal of increased confidence in the Dutch medical device manufacturer. US-listed shares of Philips rose 2% in premarket trading.
Worthington - Worthington Enterprises was falling 7.3% after the industrial products company reported a fiscal fourth-quarter revenue decline of 14%. Sales in the company’s consumer-product business fell 16%.
Savara - Savara shares rose after the company said it saw positive results from a phase 3 trial of its molgramostim nebulizer solution in a rare autoimmune lung disorder. Shares were up 30.5% in premarket trading.
Market News
Rivian Gets $5 Billion Lifeline in Joint Venture With Volkswagen
Rivian Automotive Inc. will get a much-needed cash infusion through a new partnership with Volkswagen AG as automakers large and small rethink their strategies in a slowing electric-vehicle market.
The companies announced plans for a joint venture supported by an initial $1 billion investment from VW in Rivian and up to $4 billion more over time. In exchange, VW will get access to the startup’s technology for use in its own EVs and a partner to develop “next-generation” battery-powered vehicles and software.
Rivian’s shares soared more than 40% in premarket trading Wednesday after Tuesday’s announcement, recapturing about half of the stock’s year-to-date losses.
OpenAI Delays Rolling Out Its "Voice Mode" to July
ChatGPT maker OpenAI said on Tuesday that it was delaying the release of its "Voice Mode" feature by a month to July because of technical issues.
The company had originally planned to roll out the realistic voice conversation experience to a small group of ChatGPT Plus users in late June, but said it was delaying it because it needed time to reach its launch standard.
"For example, we're improving the model's ability to detect and refuse certain content. We're also working on improving the user experience and preparing our infrastructure to scale to millions while maintaining real-time responses," OpenAI said in a post on social media platform X.
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