21 minutes ago
Stocks that make the biggest moves before the market
Check out the companies making headlines before the bell.
- GameStop — Shares fell more than 20% after the video game retailer announced plans to sell 45 million shares of its common stock. The company also announced preliminary financial results showing a decline in sales for the first quarter.
- Reddit — The social media company rose 10.5% after announcing a partnership with OpenAI. Under the agreement, Reddit will gain certain artificial intelligence capabilities powered by OpenAI, and ChatGPT makers will have access to Reddit’s data application programming interface to train their AI models.
- Take-Two Interactive Software — The video game company’s stock fell more than 2% after the company released an update on when the new Grand Theft Auto game will be released. Take-Two says the game is scheduled for release in the fall of 2025. Previous guidance was for it to be released sometime in 2025.
Read the full list here.
— Sarah Min
22 minutes ago
Oil demand is expected to grow faster than historical trends in 2024, according to Morgan Stanley
Although the energy sector’s post-COVID-19 recovery is nearly complete, oil demand is expected to grow faster than historical averages, Morgan Stanley said.
Analyst Martin Lutz said: “2024 will likely be the first ‘normal’ year in a while, with oil demand largely reflecting slowing factors such as economic growth, population growth, government policy and technological innovation. ” he said. “What we are finding is that not only is oil demand continuing to grow, it is growing faster than historical trends. This is actually somewhat of a mistake, considering the “surprise.” “
The analyst added that there was an overall increase in investment in the energy sector, including the development of new oil and gas fields and wind and solar power. Taken together, this suggests that there continues to be a strong demand for energy currents, regardless of their form.
— Lisa Kailai Han
1 hour ago
Morgan Stanley backs soft economic landing forecast, prioritizes Japanese assets
A soft economic landing remains the most likely scenario, according to Morgan Stanley.
But the bank’s chief investment officer, Lisa Charette, said in a recent note that the probability of a soft economic landing has fallen from 80% to 50%. The central bank still expects three rate cuts this year, with the first rate cut scheduled for September.
In terms of positioning, Morgan Stanley continues to hold market weight in global equities. The bank’s S&P 500 price target for this year is currently $4,500, which represents a 15% downside.
Charette’s best ideas currently lie within Japan, in real assets and infrastructure investments, she wrote.
“Outside the US, we like Japan based on improved growth and inflation dynamics, and a very cheap yen. We also like equity-specific opportunities in Europe and some markets such as India, Brazil and Mexico. We also continue to look for beta opportunities in emerging countries,” she said. Added.
— Lisa Kailai Han
1 hour ago
Take-Two Interactive falls on Grand Theft Auto update after weak guidance
Shares of video game company Take-Two Interactive were under pressure Friday morning following an update on the release date of one of the company’s major series.
Take-Two says the next “Grand Theft Auto” is scheduled for fall 2025, although previous guidance had put it sometime in the calendar year.
Take-Two’s fiscal year starts in April, so the timing will have a big impact on the company’s outlook. The company said it expects net bookings of $5.55 billion to $5.65 billion for the current fiscal year, compared with analyst estimates of $6.94 billion compiled by LSEG.
The company had $1.35 billion in bookings for its fiscal fourth quarter, beating expectations of $1.3 billion, according to analysts surveyed by LSEG.
Stocks fell more than 2% before the opening bell.
— Jesse Pound
3 hours ago
Reddit skyrockets after signing deal with OpenAI
Reddit soared 13% after ChatGPT’s parent company announced a deal with OpenAI that will allow it to train language models at scale using data from the social media platform.
“Including this in ChatGPT stands by our belief that the internet is connected, and empowers people to do more, explore more,” Reddit CEO Steve Huffman said in a release Thursday. “It’s going to make it easier to find people who are there, and it’s going to make it easier for new viewers to find communities on Reddit.”
— Fred Imbert
9 hours ago
Country Garden liquidation hearing in Hong Kong court postponed
A Hong Kong court has postponed the hearing of a petition to liquidate debt-laden Chinese real estate company Country Garden Holdings until June 11, Reuters reports.
The struggling real estate company received a liquidation application filed by one of its creditors at the end of February.
The company had received a “liquidation” petition dated Feb. 27 filed by Ever Credit Limited for nonpayment of loans worth HK$1.6 billion ($204.4 million).
Country Garden announced in early April that trading of its shares on the Hong Kong Stock Exchange had been suspended.
—Shreyashi Sanyal, Reuters
10 hours ago
China’s urban unemployment rate drops to 5%
China’s urban unemployment rate fell to 5% in April, down from 5.2% in March.
The country’s National Statistics Office does not provide age-disaggregated data. The company previously said age-specific data would be released after the overall numbers were released.
NBS said in a statement that April’s statistics were influenced by the May 1 Labor Day holiday and last year’s high levels.
“Key indicators for industry, exports, employment and prices have generally improved and maintained renewed momentum.”[ing] It is a rapid growth,” NBS said.
Read the full text here.
— Evelyn Chen
10 hours ago
China’s April consumption slows, industrial activity remains strong
China’s retail sales and fixed asset investment in April were lower than market expectations, while industrial production exceeded expectations compared to the same period last year.
According to the National Bureau of Statistics, retail sales rose 2.3% in April from a year earlier. That was lower than the 3.8% increase expected in a Reuters poll and slower than the 3.1% pace reported in March.
Industrial production rose 6.7% in April compared to the same month last year, exceeding the expected 5.5% growth and also significantly higher than March’s 4.5%.
Fixed asset investment increased by 4.2% in the first four months of this year, but fell short of the expected 4.6% increase.
Read the full text here.
—Evelyn Chen
12 hours ago
Japan’s central bank governor says there are ‘no immediate plans’ to sell ETF holdings: Reuters
According to Reuters, Bank of Japan Governor Kazuo Ueda told Congress that the Bank of Japan has no immediate plans to sell its ETF holdings.
“We need to spend some time deciding what to do, including whether to withdraw the ETFs we own,” Ueda said.
The Bank of Japan abolished its yield curve control policy in March and suspended purchases of ETFs and Japanese REITs.
According to a March report by financial information service website QUICK, the Bank of Japan’s cumulative ETF holdings are 37.15 trillion yen ($238.92 billion), with an estimated market capitalization of 71.3 trillion yen.
— Lim Huijie
14 hours ago
Doximity emerges with strong earnings and stock buybacks
Doximity rose more than 14% in after-hours trading after the medical professional platform’s revenue beat Wall Street expectations and it announced a share buyback.
The company outperformed even the most bullish analysts surveyed by FactSet on fourth-quarter adjusted earnings per share and revenue. Doximity provided slightly stronger than expected earnings guidance for the current quarter. This takes him from $119.5 million to $120.5 million, compared to the consensus estimate of $118.9 million for him. However, the full-year outlook for this measure was weak.
The San Francisco-based company also announced it would buy back up to $500 million in Class A stock.
— alex harring
14 hours ago
Barclays says potential stagflation and geopolitical risks could catch investors off guard
Barclays strategist Venu Krishna says investors are acutely aware of certain market risks, such as a potential recession or consumer stress, but they can be blindsided by other risks. It is said that there is.
“We believe stagflation could (though unlikely) be caught in the stock market without realizing it, and some traditional defensive strategies do just that,” the strategist said in a note Thursday. Because in that scenario, it becomes something you don’t want to have.”
Krishna added that the high risk premium shows investors are not pricing in potential geopolitical risks adequately.
— Lisa Kailai Han
15 hours ago
Stocks heading for a winning week
Despite Thursday’s decline, the average of the three major stocks tends to end the week higher.
The Nasdaq Composite Index rose 2.2% this week, leading the index gains. The S&P 500 rose 1.4% and the Dow rose 0.9%.
— Alex Harring
15 hours ago
Fed “hopes to cut rates several times,” says BlackRock leader
Rick Rieder, BlackRock’s chief investment officer and head of global fixed income and global allocation, said on CNBC’s “Closing Bell” that there are signs that low-end U.S. consumers are struggling. Stated. This could be a big factor in prompting the Fed to cut rates, Rieder said.
“It’s clear you’re putting pressure on low-income people. I think they want to get a few cuts this year. Will they be able to get it in July? You? “I think there’s a 25% chance that we’ll be able to start moving in,” Reeder said.
These forecasts are broadly in line with market expectations, according to the CME FedWatch tool.
Rieder also said that stock prices could continue to hit record highs due to strong earnings and demand for stocks, including stock buybacks by major tech companies.
— Jesse Pound
15 hours ago
Stock futures are almost flat
Futures tied to the Dow, S&P 500 and Nasdaq 100 were all little changed after 6pm ET.
— Alex Harring