Today, Stock futures began Q3 and the second half of 2024 on a positive note, rising modestly in pre-market.
Top stock gainers
Spirit AeroSystems (NYSE:SPR) shares jumped more than 8% after Boeing (NYSE:BA) announced it will buy the firm in an all-stock deal for $37.25 per share, for a total transaction value of approximately $8.3 billion, including Spirit’s debt. This marks a 26% premium to Spirit’s closing stock price on February 29, the day before the takeover talks were announced.
Li Auto’s (NASDAQ:LI) shares gained more than 3% after the company announced the delivery of 47,774 vehicles in June, a 46.7% increase year on year and 36.4% month on month. This trend continued into Q2, with deliveries totaling 108,581, representing a 25.5% year-on-year increase. As of June 30, 2024, Li Auto has delivered 822,345 vehicles, ranking first among China’s growing new energy auto brands. Since the second quarter, the firm has recaptured the top rank in sales among developing new energy auto companies, thanks to the introduction of its new model, the Li L6, and increased shop efficiency.
NIO (NYSE:NIO) gained 5% after releasing its monthly delivery report, which showed 98% year-over-year growth in June and a nearly 144% increase in Q2 deliveries. As of June 30, 2024, the company’s cumulative deliveries totaled 537,020.
Chewy’s (NYSE:CHWY) shares rose 25% after stock influencer Keith Gill announced a 6.6% interest in the firm, with approximately 9 million shares of Chewy Class A common stock as of June 24 in 13G Fililng. Gill’s mysterious social media message with an image of a puppy boosted Chewy’s stock to an almost one-year high. Gill, also known as “Roaring Kitty,” played a key role in the 2021 meme-stock craze by posting a screenshot on Reddit that showed his significant holding in GameStop stock and options.
Top stock losses
Premarket
Gainers
Tesla (NASDAQ:TSLA) shares increased 1.7% after Wedbush analysts said the EV maker’s growth in China appeared to be progressively improving, with a “mini rebound” in Q2 that might enable the firm meet Wall Street’s forecast of 435,000 units.
Chewy (NYSE:CHWY) stock increased 19% after Keith Gill, the stock influencer known as “Roaring Kitty,” revealed a 6.6% interest in the pet supplies company.
Nio (NYSE:NIO) ADRs surged 4.8%, while Li Auto (NASDAQ:LI) stock increased 3.1% as the Chinese EV manufactures announced strong deliveries in June.
Trump Media & Technology (NASDAQ:DJT) shares climbed 3.1%, rebounding from Friday’s significant losses in volatile trading following the first presidential debate between current President Joe Biden and former President Trump.
Cassava Sciences (NASDAQ:SAVA) shares increased 1.6%, rebounding from a three-fold slump the previous session after a key adviser to the Alzheimer’s treatment researcher was accused by a federal grand jury for allegedly submitting fraudulent and altered scientific data to acquire grants.
Meta Platforms (NASDAQ:META) increased 0.9% despite Facebook’s owner being punished by EU antitrust regulators for failing to comply with historic internet regulations.
Losers
GameStop (NYSE:GME) stock plummeted 6.2% after Gill was charged with securities fraud in a class-action lawsuit involving the video game retailer.
Nvidia (NASDAQ:NVDA) shares dipped 1.3%, consolidating gains of about 150% so far this year. Morgan Stanley raised its price target for the semiconductor, describing it as “the most compelling narrative in the AI semis space”.
Boeing (NYSE:BA) stock declined 0.4% after the planemaker agreed to repurchase Spirit Aerosystems (NYSE:SPR), up 4.6%, for more than $4 billion, putting an end to months of uncertainty over the deal as the planemaker faced with a fresh safety issue.
Stock in Focus
Levi Strauss (LEVI) Class A shares fell more than 17% before the opening bell after the business missed quarterly revenue projections and reaffirmed its yearly top-and-bottom line guidance. The legendary jeans brand reported Q2 revenue of $1.4B, up 8% Y/Y, missing forecasts. Levi’s (LEVI) worldwide wholesale division declined mid-single digits despite strong DTC sales. Levi (LEVI) CEO Michelle Gass said the DTC shift was “yielding positive results around the world.”
With FQ4 2024 results expected after the close, Nike (NKE) shares will be watched. Wall Street anticipates Beaverton-based business to earn 84 cents per share on $12.86B in revenue. Nike’s (NKE) results are commonly used to gauge consumer spending. Citi thinks the company leads North America and Europe in sporting goods. The brokerage believes Germany’s Adidas (OTCQX:ADDDF)(OTCQX:ADDYY) threatens Nike’s (NKE) appeal in China.
A day after a historic 50-for-1 stock split, Chipotle Mexican Grill (CMG) shares rose roughly 1% in pre-market trade. After markets closed on Tuesday, Chipotle (CMG) owners received 49 more shares each share. One of the largest stock splits in NYSE history. Chipotle (CMG) stock used to trade north of $3K, and a stock split may make it more investible at its new price.
After JPMorgan downgraded U.S. Bancorp (USB) to Neutral from Overweight after the Federal Reserve’s latest stress test, the shares fell 1.5% before market open. On Wednesday, the Fed reported that all 31 banks tested this year met their minimum common equity tier 1 (CET1) capital requirements during a hypothetical recession. JPMorgan said stress test results suggested U.S. Bancorp (USB) will need a substantial rise in capital needs, adding another obstacle and delaying capital return plans.
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After reporting 8% Y/Y subscription revenue growth in 4Q24, DocuSign (NASDAQ:DOCU) shares rose 10%. Electronic signature business predicts 1Q25 revenue of $704M to $708M, above analysts’ $699.1M forecast. DocuSign expects sales of $2.91B to $2.92B this year, with consensus of $2.91B. Customer adoption of Contract Lifecycle Management and eSignature in StateRAMP-authorized environments was also emphasized by the organization.
MongoDB (NASDAQ:MDB) shares fell 8% after exceeding Q4 profit and sales forecasts owing to its dovish FY2025 outlook. MongoDB expects revenues of $436M to $440M in Q1, below the average expectation of $449.08M. Below the estimate of $0.61, non-GAAP EPS is expected to be $0.34–$0.39. The business estimates FY2024 sales between $1.9B and $1.93B, below the average of $2.03B. Unlike the consensus of $3.22, non-GAAP EPS is expected to be $2.27 to $2.49.
Marvell Technology (NASDAQ:MRVL) shares fell over 7% after solid Q4 earnings due to a dismal Q1 guidance. The business predicts Q1 sales of $1.15B, plus or less 5%, behind analysts’ $1.36B. Marvell predicts adjusted gross margins of 62% to 63% and adjusted earnings of $0.18 to $0.28 per share, significantly below the average forecast of $0.40. Marvell announced $3B in stock buybacks.
Despite a 5.7% Y/Y rise, Costco Wholesale’s NASDAQ:COST shares plummeted roughly 4% as its FQ2 earnings reports fell short of the top-line estimate. Comparable sales increased by 5.6% during the quarter, above the 5.1% estimate.
MongoDB (NASDAQ:MDB) shares fell 8% after exceeding Q4 profit and sales forecasts owing to its dovish FY2025 outlook. MongoDB expects revenues of $436M to $440M in Q1, below the average expectation of $449.08M. Below the estimate of $0.61, non-GAAP EPS is expected to be $0.34–$0.39. The business estimates FY2024 sales between $1.9B and $1.93B, below the average of $2.03B. Unlike the consensus of $3.22, non-GAAP EPS is expected to be $2.27 to $2.49.
Marvell Technology (NASDAQ:MRVL) shares fell over 7% after solid Q4 earnings due to a dismal Q1 guidance. The business predicts Q1 sales of $1.15B, plus or less 5%, behind analysts’ $1.36B. Marvell predicts adjusted gross margins of 62% to 63% and adjusted earnings of $0.18 to $0.28 per share, significantly below the average forecast of $0.40. Marvell announced $3B in stock buybacks.
Despite a 5.7% Y/Y rise, Costco Wholesale’s NASDAQ:COST shares plummeted roughly 4% as its FQ2 earnings reports fell short of the top-line estimate. Comparable sales increased by 5.6% during the quarter, above the 5.1% estimate.