Stock futures showed little movement this morning following a significant downturn in technology shares that impacted major stock indexes on Tuesday. Futures associated with the Dow Jones Industrial Average and S&P 500 posted gains of 0.2% and 0.1%, respectively, while futures linked to the tech-heavy Nasdaq dipped 0.2%. The previous day saw all three indexes decline sharply, primarily due to a pullback in technology stocks. In a contrasting market move, gold futures increased by 3%, rebounding above $5,000 an ounce after experiencing a drop last Friday and continuing into Monday. Cryptocurrencies remained relatively stable, with Bitcoin trading around $76,000 after briefly falling below $73,000, marking its lowest point since November 2024. The yield on the 10-year Treasury note remained steady at 4.27%, impacting borrowing costs across consumer loans.
In a notable development, shares of Advanced Micro Devices (AMD) took a sharp hit in premarket trading, despite the chipmaker reporting quarterly results exceeding Wall Street expectations. AMD reported record revenues of $10.27 billion and adjusted earnings per share of $1.53, surpassing projections by analysts. However, the company’s forecast for the first quarter, predicting revenue between $9.5 billion and $10.1 billion, fell short of investor hopes, leading to concerns about a quarter-over-quarter decline in revenue. This skepticism comes amid heightened scrutiny on AI-related companies during earnings season, as some fear that the increasing valuations within the AI trade may not reflect actual market demand. AMD shares were recently down 9%.
Earnings reports continue to fuel investor anticipation, with Alphabet, the parent company of Google, set to release its fourth-quarter results post-market. Analysts forecast that Alphabet will report revenues of $111.4 billion, alongside adjusted earnings per share of $3.09. Investors are particularly focused on signals indicating robust demand for Google’s cloud services and further details regarding the company’s recent deal with Apple, which involves utilizing Google Gemini models for enhancements to Apple’s Siri and other AI functionalities. In premarket trading, Alphabet shares saw a 1% uptick.
A slew of big-name stocks are making significant moves based on their respective earnings releases. Eli Lilly (LLY) shares surged 9% after the pharmaceutical giant announced earnings and an outlook that exceeded expectations. In contrast, rival Novo Nordisk (NVO) faced a 5% decline after issuing a disappointing outlook. Other notable movers include Chipotle Mexican Grill (CMG), which saw a 6% drop, and Uber Technologies (UBER), down 5%. On the upside, Super Micro Computer (SMCI) surged 12%, while both Take-Two Interactive (TTWO) and Match Group (MTCH) rose 7%.
In a major corporate transaction, shares of Silicon Laboratories (SLAB) skyrocketed following the announcement that the chipmaker will be acquired by Texas Instruments (TXN). The acquisition deal offers Silicon Laboratories shareholders $231 per share, valuing the company at approximately $7.5 billion. Expected to close in the first half of next year, this acquisition represents Texas Instruments’ largest since 2011. Following a Financial Times report indicating that a deal was near completion, Silicon Laboratories shares soared about 51% to around $206, marking their highest level in four years. Conversely, shares of Texas Instruments, which have seen a 25% increase over the past year, were down 4% ahead of the market opening.
