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Dow futures rise as inflation data is due; Tesla, Lululemon, 2 Chip Giants in focus

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Dow Jones futures rose modestly Friday morning, along with S&P 500 futures and Nasdaq futures, as a wholesale inflation report came out.




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The stock market rebounded somewhat on Thursday, with the Nasdaq rebounding from near its 50-day moving average. But the major indices have only recouped a fraction of recent losses, with the S&P 500 staying a distance from its 200-day moving average.

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apple (AAPL) chip maker Taiwan Semiconductor (TSM), Boeing (BA), Tesla (TSLA), China EV maker Lee Otto (L.I), United Airlines (UAL), Lululemon Athletica (Lulu) And the from Broadcom (AVGO) were all in focus Friday morning.

Taiwan Semiconductor reported strong revenue growth in November, despite Apple iPhone production issues. Boeing is set to announce a major deal to sell its planes to United Air. There are other reports of Tesla production cuts in China. EV startup Li Auto reported mixed third-quarter results, but is seeing booming deliveries in December. Lululemon gave weak guidance for the holiday while Broadcom outperformed Views and headed higher in the current quarter.

Dow jones futures today

Dow futures rose 0.4% against fair value. S&P 500 futures rose 0.5%. Nasdaq 100 futures rose 0.6%.

Crude oil futures rose slightly.

The Labor Department will release the Producer Price Index for November at 8:30 a.m. ET. The PPI inflation report should show a significant decline in headline inflation and core wholesale inflation. But it is clear that commodity prices are cooling.

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The Fed’s focus has been on service prices. The November CPI report is set for December 13, with the Fed’s year-end meeting decision set for December 14.

Remember to work in overnight Dow Jones futures contracts and elsewhere that does not necessarily translate into actual trading in the next regular session Stock market session.


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Main earnings

Broadcom earnings Earnings were better than expected. The chip and software giant also led to higher revenue for the current quarter and AVGO’s earnings increased. AVGO stock rose 4% before the open, indicating a return above the 200-day line.

Lululemon’s earnings topped the views, too. But the yoga apparel and retail index fell slightly in the main holiday quarter. LULU stock fell 6% before the open, indicating a pullback below a buy point.

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Top five Chinese stocks to watch now


Tesla stock

Reuters reported Friday that Tesla Shanghai will suspend Model Y production for the last week of the year, only producing 20,000 Y crossovers in the last three weeks of December. That would be about half of Shanghai’s typical Model Y production during that period. It comes amid widespread reports of production cuts, and shorter shifts at Tesla’s largest assembly plant.

A major expansion in Shanghai was completed in August, but Tesla’s backlog has fallen to zero. Tesla cut prices in late October and announced a series of rebates and incentives to boost demand before government support ends on December 31.

Tesla stock rose 1% Friday morning. TSLA stock is down 11% so far this week, just above the bear market’s lows.


Tesla vs. BYD: Which EV giant is the best to buy?

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me stock cars

Li Auto reported a larger-than-expected loss in the third quarter while revenue growth fell short. The hybrid SUV maker has faced Covid-related issues as well as a shift to newer models.

But Li Auto speeds up production and delivery. And you see Q4 deliveries of 45,000 to 48,000 hybrids. Li Auto delivered 10,052 and 15,034 units in October and November. This implies December delivery of 19,914 to 22,914.

Li Auto shares fell more than 1% before the opening. LI stock has been rallying along with other China makers and Chinese stocks in general over the past few weeks.

Apple Chipmaker Taiwan Semiconductor

Taiwan Semiconductor reported November revenue jumped 50% year-over-year to $7.27 billion, outpacing a slowdown in much of the semiconductor business Taiwan Semi is one of the world’s largest contract manufacturers, making chips for other companies. including Apple, nvidia (NVDA) And the Qualcomm (QCOM).

Apple iPhone production has been hit by Covid shutdowns and disruptions at Foxconn’s massive assembly plant in China. China Covid restrictions are being eased, as Foxconn has ended the “closed loop” process at the iPhone factory.

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TSM stock rose 1% before the open, near the 200-day line. Apple shares gained 1%.

Boeing and United Airlines deal

Boeing and United Airlines said late Thursday that they plan to make a “historic announcement” on Tuesday. This appears to confirm a recent report in the Wall Street Journal that United Airlines will order dozens of 787 Dreamliners.

Boeing stock jumped more than 1% early Friday, while United Airlines stock advanced 1%. BA stock closed in a buy range, while UAL stock pulled back again from a buy point amid broader travel concerns.

Read The Big Picture Every day to keep up with the market trend, stocks and leading sectors.

Please follow Ed Carson on Twitter at @tweet For stock market updates and more.

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MicroStrategy is at its lowest level since 2020 after the sales were revealed

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(Bloomberg) — Shares of MicroStrategy touched their lowest level since August 2020 after the enterprise software company, which in recent years has been known as the largest buyer of bitcoin, revealed its first sale of the token.

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The stock fell 1.1 percent to $136.63 on Thursday, down 75 percent this year. Bitcoin rose less than 1% to around $16,590 and is believed to have fallen 64% since the start of the year.

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In a filing on Wednesday, MicroStrategy said it acquired approximately 2,395 Bitcoin between the beginning of November and December 21 through its subsidiary MacroStrategy, and paid out approximately $42.8 million in cash. It then sold 704 of the tokens on Dec. 22 for a total of about $11.8 million, citing tax purposes, before buying another 810 of them two days later.

Matt Malley, chief market strategist for Miller Tabak + Co. Step down as CEO. This news means they don’t seem to want to do that anytime soon.”

Overall, MicroStrategy held about 132,500 bitcoins worth over $4 billion USD as of December 27th. The company paid an average purchase price of $30,397 per bitcoin.

“Given MicroStrategy’s $2.4 billion in leverage, we believe the company may have a lot of leverage over Bitcoin, and may face some liquidity risk,” Jefferies analyst Brent Thiel wrote in a note on Wednesday. Thill has an “underperform” rating on the stock and a price target of $110.

Over the years of the pandemic, MicroStrategy has become well known for its Bitcoin takeovers, largely led by Saylor. Earlier this year, Saylor stepped down from that role and now serves as CEO at the company and continues to lead its bitcoin strategy.

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MicroStrategy was trading around $120 before Saylor first announced the company’s Bitcoin purchases in 2020. The stock reached an all-time high of $1,315 in February 2021.

(Updates to include the stock’s closing price in the second paragraph.)

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Bankman-Fried May File Petition in New York Federal Court Next Week Before Judge Louis Kaplan By Cointelegraph

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Former FTX CEO Sam Bankman-Fried is set to appear in court on the afternoon of January 3 to enter a lawsuit over two counts of wire fraud and six counts of conspiracy against him related to the collapse of cryptocurrency exchange FTX, according to Reuters. mentioned on December 28, citing court records. Bankman-Fried will appear before District Judge Lewis Kaplan in Manhattan.

Judge Kaplan was appointed to hear the case on December 27 after the original judge in the case, Ronnie Abrams, Resigned herself because of connections between FTX and the law firm Davis Polk & Wardwell, where her husband is a partner. The company provided advisory services to FTX in 2021.