Stock futures were little changed Tuesday after the Dow Jones Industrial Average closed at a record, while traders sifted through the latest earnings reports.
Market Snapshot
At 8:30 a.m. ET, Dow futures lost 13 points, or less than 0.1%. S&P 500 futures and Nasdaq-100 futures were little changed.
Pre-Market Movers
Bank of America -- Shares moved 2% higher after third-quarter earnings and revenue topped Wall Street analysts’ estimates. Earnings came in at 81 cents, beating the 77 cents expected from analysts polled by LSEG. Revenue was $25.5 billion, versus the $25.3 billion consensus estimate.
Johnson & Johnson - The healthcare conglomerate saw shares rising slightly premarket after quarterly results exceeded expectations on the back of strong sales of oncology drugs. J & J also raised forward financial guidance for full-year 2024 profit and sales.
UnitedHealth — The healthcare stock declined 4% despite posting a top and bottom-line beat in the third quarter. The company lowered its earnings guidance due to ongoing headwinds from a cyberattack earlier in the year. UnitedHealth cut the top end of its full-year earnings forecast, now $27.50 to $27.75 per share versus $27.50 to $28 previously.
Walgreens Boots Alliance — The retail drugstore chain jumped 5% after fiscal fourth-quarter sales and profit exceeded analysts’ expectations. Walgreens also said it plans to close roughly 1,200 stores over the next three years, which it said should increase adjusted earnings and free cash flow and help cut costs.
Citigroup — Shares of the Jane Fraser-led bank added 2% after third-quarter earnings and revenue were better than consensus estimates. Citigroup posted earnings per share of $1.51 on $20.32 billion in revenue, while analysts surveyed by LSEG had expected earnings per share of $1.31 on revenue of $19.48 billion.
Etsy — Shares tumbled more than 4% after Goldman Sachs downgraded the online marketplace to sell from neutral. The investment bank highlighted the risk of compressed profit margins and continued market share losses.
Coty – Shares fell 6% after the beauty company warned of a slower U.S. market in preliminary fiscal first-quarter results. Coty now expects comparable revenue to rise between 4% and 5%, down from prior guidance of 6% growth.
Charles Schwab — The brokerage company surged 9% after third quarter results beat analysts’ estimates. Charles Schwab reported 77 cents in earnings per share excluding one-time items, on $4.85 billion in revenue. Analysts had estimated 75 cents earnings per share and revenue of $4.78 billion, per LSEG. Revenue grew 5% from the prior quarter on sustained investor engagement. The company’s wealth advisory division reported record year-to-date inflows.
Market News
Goldman Sachs Profit Jumps 45% on Investment Banking Strength
Goldman Sachs third-quarter profit jumped 45%, fueled by a rebound in bond sales, stock offerings and mergers, sending its shares up more than 3% in premarket trading.
It joined JPMorgan Chase, which also gained from an investment banking revival, as corporate clients became more confident in the economic outlook, spurring debt and equity offerings.
Wolfspeed Wins $1.5 Billion Financing From Chips Act, Apollo
Wolfspeed Inc., a manufacturer of chips used primarily in electric vehicles, is in line to win $750 million in US government grants as well as $750 million in financing led by Apollo Global Management Inc. to support its factory expansion plans.
Wolfspeed’s shares rose 28% in premarket trading on Tuesday before New York exchanges opened.
US Weighs Capping Exports of AI Chips From Nvidia and AMD to Some Countries
Biden administration officials have discussed capping sales of advanced AI chips from NVIDIA Corp and other American companies on a country-specific basis, people familiar with the matter said, a move that would limit some nations’ artificial intelligence capabilities.
The new approach would set a ceiling on export licenses for certain countries in the interest of national security, according to the people, who described the private discussions on condition of anonymity. Officials are focused on Persian Gulf countries that have a growing appetite for AI data centers and the deep pockets to fund them, the people said.
Deliberations are in early stages and remain fluid, the people said, noting that the idea has gained traction in recent weeks. The policy would build on a new framework to ease the licensing process for AI chip shipments to data centers in places like the United Arab Emirates and Saudi Arabia. Commerce Department officials unveiled those regulations last month and said there are more rules coming.
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