To The Moon

Futures tracking Wall Street's main indexes were rose on Wednesday. Private payroll growth tailed off sharply in September, according to an ADP report Wednesday that provides a counterweight to other signs that the labor market is still running strong.

The payroll processing firm said job growth totaled just 89,000 for the month, down from an upwardly revised 180,000 in August and below the 160,000 estimate from economists polled by Dow Jones.

Market Snapshot

At 8:20 a.m. ET, Dow e-minis were up 56 points, or 0.17%, S&P 500 e-minis were up 8.75 points, or 0.21%, and Nasdaq 100 e-minis were up 35.5 points, or 0.24%.

Pre-Market Movers

$Apple(AAPL)$ was downgraded to Sector Weight from Overweight at KeyBanc with the analysts saying the stock has been trading at near all-time-high multiples and a historically large premium to the Nasdaq, and that they see soft growth from the iPhone maker’s Americas region. KeyBanc has no price target on Apple shares. The stock was down 0.9% to $170.86 in premarket trading.

$Intel(INTC)$ was up 1.9% after the chip maker said it plans to spin off its programmable solutions group in a public offering over the next two to three years. As a transition to the spinoff, Intel said PSG would operate as a stand-alone business on Jan. 1, 2024, and its financials would be reported as a separate business unit when Intel posts earnings for the first quarter of 2024.

$Moderna(MRNA)$ rose 0.9% after the biotech company said its first combination vaccine, which protects against the flu and Covid-19, had succeeded in an early-stage trial and could be ready to launch as soon as 2025.

$Cal-Maine Foods(CALM)$ reported fiscal first-quarter earnings that missed analysts’ expectations and said sales slumped about 30% as average egg prices tumbled to $1.59 per dozen from $2.28 a year earlier. Shares of the egg producer fell 12%.

$A10 Networks(ATEN)$ was falling 18% after the cloud security software company said it expected third-quarter revenue of $56.5 million to $58.5 million, down from $72.1 million a year earlier and below analysts’ estimates of $74.6 million. The company said it experienced “delays related to North American service provider customers pushing out capital expenditures.”

U.S.-listed shares of $Novartis(NVS)$ declined 3.8% following the spinoff of the generic drug maker Sandoz. 

$Sunrun(RUN)$ fell 3.4% to $10.30 and $Sunnova Energy(NOVA)$ dropped 3.3% to $9.10 after shares of both solar companies were downgraded to Hold from Buy at Truist. The firm cut its price target on Sunrun to $12 from $30 and reduced the target on Sunnova to $11 from $35.

$Fluor(FLR)$ rose 2% to $35.32 after shares of the engineering and construction company were upgraded to Buy fro Neutral at UBS and the price target was raised to $47 from $35.

Industrial technology company $Acuity Brands(AYI)$ reported fiscal fourth-quarter adjusted earnings of $3.97 a share, higher than Wall Street estimates of $3.73. Sales fell to $1.01 billion from $1.11 billion a year earlier and missed forecasts of $1.02 billion.

Market News

Apple Gets Downgraded by KeyBanc, Believing Valuation Near All-Time High

$Apple Inc.(AAPL)$ was downgraded at KeyBanc Capital Markets Inc., which said shares of the iPhone maker are trading near all-time high valuation levels though its sales growth is likely to slow.

“US sales are likely to struggle” on a challenging upgrade cycle for the iPhone amid slower consumer spending, analyst

Shares of Apple are still up 33% this year, though they have retreated more than 12% from their July record high amid the tech selloff sparked by concerns over high interest rates. Last month’s unsurprising launch of new iPhone models has done little to help reignite the rally.

Amazon Used Secret "Project Nessie" Algorithm to Raise Prices

$Amazon.com(AMZN)$ used an algorithm code-named "Project Nessie" to test how much it could raise prices in a way that competitors would follow, according to redacted portions of the Federal Trade Commission's monopoly lawsuit against the company.

The algorithm helped Amazon improve its profit on items across shopping categories, and because of the power the company has in e-commerce, led competitors to raise their prices and charge customers more, according to people familiar with the allegations in the complaint. In instances where competitors didn't raise their prices to Amazon's level, the algorithm -- which is no longer in use -- automatically returned the item to its normal price point.

Moderna's Combo Vaccine Moves Towards Late-Stage Trial

The biotech $Moderna(MRNA)$ said Wednesday that its first combination vaccine, which protects against influenza and Covid-19 vaccine, had succeeded in an early-stage trial, and could be ready to launch as soon as 2025. Moderna stock gains 1.86% in premarket trading.

The company said that the shot had performed as well as the two stand-alone vaccines it was tested against, and that side effects were “acceptable.” It said it would start a Phase 3 trial of the shot later this year.

Palantir, PwC Team up to Bring AI Solutions to Clients

$Palantir Technologies(PLTR)$ and PwC are collaborating to use Palantir's Artificial Intelligence, or AI, capabilities to help clients with data and AI-enabled operations.

PwC will use Palantir Foundry — the platform for integrating data, analytics, and operations — and Palantir’s Artificial Intelligence Platform, or AIP, to help clients identify and action strategies for operational transformation.

The partnership will bring together PwC's expertise and Palantir’s software to help organisations deliver transformational business impact across activities such as manufacturing, supply chain, health, pharmaceuticals, financial services, M&A, digital audit, and others. Palantir stock gains 4% in premarket trading.

Eli Lilly's Head of Diabetes and Obesity Unit to Retire

$Eli Lilly and Co(LLY)$ said on Wednesday that the head of its diabetes and obesity division, Mike Mason, will retire by the end of the year after more than three decades with the drugmaker.

Mason oversaw the late-stage development of tirzepatide, Lilly's potential blockbuster that is sold under the brand name Mounjaro for diabetes and is under U.S. regulatory review for obesity.

Lilly said Patrik Jonsson, president of Lilly USA, will take over Mason's role.