#Stock #Market #Opens
Stock futures rose early Monday ahead of a busy week that includes the presidential election and the Federal Reserve’s decision on interest rates.
Shares of Berkshire Hathaway (BRK.A; BRK.B) fell after the Warren Buffett-led group reported lower earnings while cutting its holdings in Apple (AAPL) and Bank of America (BAC). Shares of Nvidia (NVDA) and Sherwin-Williams (SHW) rose ahead of their inclusion in the Dow Jones Industrial Average, displacing Intel (INTC) and the Dow (DOW). Shares of Palantir Technologies (PLTR) fell despite analysts seeing a 26% jump in quarterly revenue in its upcoming earnings report. Boeing (BA) shares rose ahead of today’s vote from the machinists’ union on a new labor contract that would end a workers’ strike that has been going on for nearly two months.
Here’s what investors need to know today.
1. Stock futures rise ahead of elections and Fed interest rate decision
Stock futures trended higher pre-market as market watchers brace for a week that includes Election Day on Tuesday and the Federal Reserve’s key interest rate decision on Thursday. Investors are looking to capitalize on gains from Friday’s session, when stocks rose after all three major indexes closed October in the red. Oil prices rose by more than 2% after the Organization of the Petroleum Exporting Countries (OPEC), along with allies including Russia, announced that it would extend production cuts until December. Treasury yields were slightly lower, with the yield on the benchmark 10-year Treasury note at about 4.28%.
2. Berkshire’s profits decline, and the cash pile grows as shares of Apple and Bank of America are sold
Berkshire Hathaway Group reported that its profits fell in the third quarter as it trimmed its holdings in both Apple and Bank of America. Berkshire reported third-quarter operating profit of $10.1 billion, down from $10.7 billion a year ago and $11.6 billion in the previous quarter. It also recorded a record level of cash holdings of $320.3 billion, up from $271.5 billion in the second quarter. The Warren Buffett-led company also said it had temporarily halted stock buybacks.
Shares of Berkshire Hathaway fell slightly in pre-market trading. Apple and Bank of America shares also declined.
3. Nvidia replaces Intel in the Dow Jones index, and Sherwin-Williams also joins the index
Chipmaker Nvidia will replace rival semiconductor maker Intel in the Dow Jones Industrial Average, while paint producer Sherwin-Williams will also join the blue-chip index in place of chemical company Dow. S&P Dow Jones Indices said the changes to the index will come before the start of trading on Friday, November 8.
NVIDIA’s inclusion in the index comes as its stock price rises due to demand for artificial intelligence (AI), while Intel shares have lost more than half their value this year. Nvidia shares were trading higher by more than 2% in premarket trading, while Sherwin-Williams shares were up more than 4%. Shares of both Intel and Dow traded lower.
4. Palantir declines before earnings as analysts see stock price falling
Shares of Palantir Technologies fell more than 1% ahead of the software provider’s third-quarter earnings report, due after markets close today. Analysts surveyed by Visible Alpha expect Palantir’s revenue to increase 26% this quarter to $704.9 million, while expected earnings per share of 5 cents will rise from 3 cents per share a year earlier.
Palantir shares are up nearly 40% since September, but of the 12 analysts covering Palantir, only two expect additional upside in the company’s shares, with the average price target of $27.55 34% below Friday’s closing price.
5. Boeing shares rose ahead of the Machinists Union vote
Boeing shares rose in premarket trading ahead of a vote today by the aerospace giant’s mechanics union that could end a strike that has lasted nearly two months. The International Association of Machinists is scheduled to vote on Boeing’s new offer, which includes a 38% pay increase, along with a certification bonus that workers can choose to use as part of their retirement savings. The union rejected a previous offer from Boeing that included a 35% pay increase, to extend the strike that began on September 13. Boeing recently raised about $19 billion from stock sales and depositary shares as the company looks to shore up its finances.
#Stock #Market #Opens
