News of the day for Nov. 8, 2024
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Nvidia CEO Jensen Huang in California in March.
Stock futures were nmostly lower in early trading as momentum from the election faded following the Fed’s expected move to cut interest rates.
Nvidia and Sherwin-Williams are set to begin trading on the Dow Jones Industrial Average today; Arista Networks shares moved lower after the cloud networking giant posted declining gross margins; Airbnb dropped after its quarterly net income was lower year-over-year, despite beating revenue expectations; DraftKings shares fell after it cut its full-year estimates for income and revenue as it looked at a poor start to the fourth quarter.
Here’s what investors need to know today.
Momentum following this week’s election results faded, with markets mixed ahead of the opening bell. Nasdaq futures were lower by 0.3% while S&P 500 futures also trended lower. Both of those hit all-time highs in Thursday’s session. Dow futures were about flat. The deceleration comes following a widely expected move by the Federal Reserve to lower interest rates. Treasury yields ticked slightly lower and bitcoin was little changed to traded around $76,000. Trump Media (DJT) was down more 4% in premarket trading after falling more than 23% yesterday, while Tesla (TSLA) shares edged lower after posting gains in the prior session.
Nvidia (NVDA), now the world’s most valuable company on surging demand for its artificial intelligence (AI) chips, will begin trading on the Dow Jones Industrial Average today. It will replace rival chipmaker Intel (INTC), shares of which have lost nearly half of their value since the start of the year while it undergoes a major restructuring to turn around the business. Paint maker Sherwin-Williams will also join the Dow today, replacing chemical giant Dow (DOW). Shares of Nvidia were down slightly premarket, which Sherwin-Williams was little changed.
Arista Networks (ANET) shares dropped by more than 4% in premarket trading. The cloud networking giant reported a gross margin of 64.2%, down slightly from 64.9% a quarter earlier. The company posted net income of $747.9 million or $2.33 per share, up from $545.3 million or $1.72 per share a year earlier and above analyst consensus from Visible Alpha. Its third-quarter revenue grew 7% year-over-year to $1.81 billion. The company also said it would split its stock 4-for-1 on Dec. 4.
Shares of Airbnb (ABNB) declined by more than 6% in premarket trading after the vacation rental marketplace reported an unexpected decline in net income. The company posted a net income of $1.37 billion, or $2.13 per share, down from $4.37 billion or $6.63 per share, a year earlier, coming in lower than the analyst consensus from Visible Alpha. Airbnb’s quarterly revenue of $3.73 billion was ahead of estimations while the company’s Nights and Experiences Booked came in at 122.8 million, up 8% from a year ago.
