Wall Street futures were higher on Friday. Key Fed measure shows inflation rose 2.6% in May from a year ago, as expected
Market Snapshot
At 8:35 a.m. ET, Dow e-minis were up 24 points, or 0.06%, S&P 500 e-minis were up 19.75 points, or 0.36%, and Nasdaq 100 e-minis were up 96 points, or 0.48%.
Pre-Market Movers
Apple- Apple’s iPhone shipments in China rose 40% in May, off the previous month’s pace of growth despite heavy discounting by major retailers in the weeks leading up to the country’s June shopping festival. Apple shares gained 0.9% in premarket trading.
Nike - Nike reported fiscal fourth-quarter earnings that topped analysts’ estimates but revenue and first-quarter guidance missed forecasts, sending shares of the athletic apparel maker down 15% in premarket trading. Nike’s footwear revenue in North America—the company’s largest market—fell 6% year over year in the fourth quarter. It also saw soft consumer demand in China. The company said it expects first-quarter revenue to fall about 10% from a year earlier, while analysts had projected a decline of roughly 3%. Nike also said it sees fiscal-year revenue down mid-single digits.
Shares of fellow footwear retailer Foot Locker fell 5%.
Trump Media & Technology - Trump Media & Technology Group jumped 11.5% following the first presidential debate Thursday evening. President Joe Biden had a rough night in the debate, according to prediction markets. Both Biden and former President Donald Trump were light on specifics when it came to the economy and controlling inflation.
Walgreens Boots Alliance, Super Micro Computer - Walgreens Boots Alliance was falling 1.2% in premarket trading, a day after the drugstore chain tumbled 22% when it unveiledplans that could lead to the closure of thousands of underperforming storesand reduced its fiscal-year earnings guidance. It was the stock’s largest percentage decrease on record, according to Dow Jones Market Data.
Walgreens also is in danger of getting dropped from the Nasdaq 100 index—the stock was booted out of the Dow Jones Industrial Average in February—with the most likely replacement being Super Micro Computer, which was rising 1.3% to $901.86 in premarket trading, and has gained 213% this year. Andrew Bary of Barron’s noted that Super Micro, which has a market value of $52 billion, is the most discussed potential addition to the Nasdaq 100, which is made up of the largest nonfinancial companies listed on the Nasdaq exchange.
Moderna - Moderna’s stock rose 1.4% early Friday, after the biotech said an advisory panel to the European Union’s medical regulator had adopted a positive opinion on its respiratory syncytial virus (RSV) vaccine for adults aged 60 and older.
Infinera - Infinera jumped 19.6% to $6.29 after Finland’s Nokia reached an agreement to buy the maker of optical telecom equipment for $2.3 billion. The deal values Infinera at $6.65 a share, a 28% premium to the stock’s closing price Wednesday of $5.26.
Plug Power - Plug Power shares gained 3.2% in pre-market Friday after saying it plans to recognize the benefits of the Inflation Reduction Act's Section 45V federal tax credit for the production of clean hydrogen at its new electrolytic hydrogen facility in Woodbine, Georgia, in its forthcoming quarterly financial reports.
Accolade - Accolade slumped 28.8% after the company’s guidance for its fiscal second quarter and year missed analysts’ expectations. Accolade, the health technology company, said it expects revenue in the second quarter of between $104 million and $106 million, and an adjusted Ebitda loss of $8 million to $10 million, wider than forecasts that called for a loss of $5.9 million.
Travelers - Travelers fell 1.7% to $203.50 after analysts at Citi downgraded the stock to Sell from Neutral and reduced the price target on shares of the insurance company to $200 from $226. “Ultimately, we believe TRV’s diversification limits upside and contributes to a higher likelihood of downside amid today’s uncertainty,” Citi wrote in a research note.
Carisma Therapeutics - Shares of Carisma Therapeutics soared 34.4% after the biopharmaceutical company disclosed the nomination of a first-development candidate under its collaboration with Moderna, triggering a $2 million payment to Carisma.
Market News
Biden's Disastrous Debate Accelerates Doubts Over Candidacy
Biden misspoke numeous times, citing incorrect facts and figures from his first answer out of the gate. His remarks were soft-spoken, punctuated by sickly bouts of coughing, and meandering, prone to repetition. He stared into the distance as Trump delivered broadside after broadside, routinely botched scripted attacks on the former president, and froze at the end of one rambling answer.
Democrats publicly and privately expressed alarm in the aftermath, with anger bubbling toward a candidate and campaign who have long dismissed concerns over the president’s age and acuity as overblown. It invited questions as to whether the president should remain in the race, though he told reporters later that night he intended to stay on the ticket.
Trump was not without his own foibles, characteristically delivering responses riddled with falsehoods and exaggerations, and refused to commit to accepting the results of November’s election. But Biden repeatedly failed to take advantage, or parry attacks.
Japan Names New FX Diplomat as Yen Hits 38-Year Low
Japan appointed a new top foreign exchange diplomat on Friday as the yen plumbed a 38-year low against the dollar, heightening expectations of imminent market intervention by Tokyo to shore up the battered currency.
Atsushi Mimura, a financial regulation veteran, replaces Masato Kanda, who launched the biggest yen-buying intervention on record this year and aggressively jawboned speculators against pushing down the Japanese currency too much.
While the change is part of a regular personnel reshuffle conducted every year, it comes as markets test Japan's resolve to arrest a renewed fall in the yen that adds pain to households and companies by pushing up import costs.
Apple’s China iPhone Shipments Jump 40% After Steep Discounts
Apple Inc.’s iPhone shipments in China rose 40% in May, off the previous month’s pace of growth despite heavy discounting by major retailers in the weeks leading up to the country’s June shopping festival.
Smartphone shipments climbed more than 13% but foreign brands — of which Apple comprises the vast majority — grew almost four times faster, according to Bloomberg News calculations off official data. Foreign smartphones accounted for just over 5 million units of the total, the latest figures from the China Academy of Information and Communications Technology showed.
IPhone shipments began bouncing back around March, and leapt more than 50% in April. That’s partly because Apple and its Chinese resellers have been cutting prices since the start of 2024, in deals extending into the pivotal June 18 shopping festival. Before that, Apple had endured double-digit declines in sales after losing market share to Huawei Technologies Co.
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