US EQUITY OPEN: NDX extends on Thursday's losses ahead ISM Mfg. and Chair Powell

Analysis details (14:51)

NOTE: Our US Early Morning note is available from around 09:30GMT/04:30EST; today’s edition can be found here. Our Daily US Equity Opening news is available from around 13:45GMT/08:45EST; today's edition can be accessed here.

OPEN: Indices opened within contained ranges (SPX -0.1%, RUT & RUT flat) although the Nasdaq 100 (-0.3%) is continuing on its weakness seen on Thursday as large-cap names extend further into the red. As such, while sectors are mixed, Communication Services and Technology are the laggards with Energy the clear outperformer. Looking ahead, ISM Mfg. is imminent then participants await Fed Chair Powell at 16:00GMT/11:00EST and 19:00GMT/14:00EST. On the former, S&P Final Global Manufacturing PMI was unchanged at 49.4. So far, newsflow has been fairly slow on Friday with stock specific highlights from Pfizer (PFE) (-6.5%), who are to halt development of its twice-daily obesity pill, and Apple (AAPL) and Paramount (PARA) (+1.8%) to discuss bundling streaming services. The Dollar is firmer and at session highs, to the detriment of the single-currency. Precious metals (XAU, XAG) are seeing marginal gains. WTI and Brent are more-or-less flat and have been in contained ranges to end the week after Thursday’s OPEC chaos. Lastly, Treasuries are seeing a mild bid ahead of the aforementioned risk events.

KEY THEMES:

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  AI STOCKS: President Biden admin compels a Saudi Aramco venture capital firm to divest its shares in Rain AI, a Silicon Valley startup, due to national security concerns following a review by the Committee on Foreign Investment in the United States.


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  CASINO NAMES (LVS, MGM, WYNN, MLCO): Macau Casino revenue in November rose 435% Y/Y to MOP 16bln.


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  CHIPS: TSMC (TSM) likely to win it all, with Samsung's (SSNLF) 3nm reportedly losing several significant orders, according to DigiTimes.

STOCK SPECIFICS:

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  Paramount Global (PARA) and Apple (AAPL) have discussed bundling their streaming services at a discount, according to WSJ.


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  Pfizer (PFE) said it would halt development of its twice-daily experimental weight-loss pill.


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  Marvell Technology (MRVL) next quarter guidance came in light. Ahead, exec said strong growth from AI and cloud will carry it through softening demand environment in other end markets; these dynamics are reflected in its guidance.


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  Ulta Beauty (ULTA) topped expectations on EPS, revenue, and comp. sales. Narrowed FY23 guidance towards the top end of the ranges.


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  Dell Technologies (DELL) missed on revenue due to a slower-than-expected recovery in the hardware and software market. By segment, Q3 Infrastructure Solutions, Commercial, Consumer, and Storage sales missed. Q4 guidance light.


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  Elastic (ESTC) beat on the top and bottom line. Q3 revenue view topped and raised FY24 guidance.


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  Samsara (IOT) topped Wall St. expectations on EPS and revenue. Exec said that in the quarter it achieved the milestone of surpassing USD 1bln ARR. Q4 revenue guide beat alongside lifting FY24 outlook.


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  Disney (DIS) reinstated quarterly dividend of USD 0.30/shr for H2 FY23.


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  Alibaba (BABA) was downgraded at Morgan Stanley noting concern over a slower-than-expected rebound in Alibaba’s cloud segment.

01 Dec 2023 - 14:50- EquitiesData- Source: Newsquawk