Fremont, California – Dow Jones futures showed little change on Wednesday morning, as did S&P 500 and Nasdaq futures. Tesla launched its updated Model 3 in North America on Tuesday night.
Taiwan Semiconductor, Hewlett Packard Enterprise, Intuitive Surgical, Aehr Test Systems, and Lennar also made headlines.
Investors are still eagerly awaiting potential approval from the SEC for spot bitcoin ETFs.
Among the megacap tech companies, Microsoft, Meta Platforms, Nvidia, and Amazon rose slightly, while Alphabet remained relatively unchanged.
In Dow Jones futures, there was a decrease of less than 0.1% compared to fair value. S&P 500 futures slightly declined, and Nasdaq 100 futures rose about 0.1%.
The 10-year Treasury yield experienced a dip to 3.99% after a slight increase to 4.02% on Tuesday.
Bitcoin fell to just below $45,000.
It is important to note that premarket activity in Dow futures and elsewhere does not necessarily indicate actual trading in the next regular stock market session.
During Tuesday’s stock market trading, the Dow Jones Industrial Average fell by 0.4%, with the S&P 500 index declining by 0.15%. The Nasdaq composite had a slight increase of 0.1%, while the small-cap Russell 2000 dropped by 1.05% but managed to close above the 21-day line.
Taiwan Semiconductor reported a decline in December revenue of 8.4% compared to the previous year in local currency, or 14.4% compared to November. However, Q4 revenue still slightly exceeded estimates, due to strong demand for AI chips. Full-year revenue for the company declined by 4.5%.
Hewlett Packard Enterprise announced its plans to acquire Juniper Networks for $14 billion, following reports of late-stage talks. After a significant drop of 8.9% on Tuesday, HPE stock inched higher, while JNPR stock continued to rise, reaching a two-year high.
Aehr Test Systems slightly exceeded fiscal Q2 expectations, but the EV chip-testing equipment maker reduced its full-year guidance. As a result, AEHR stock plummeted over 15% and is projected to reach a 52-week low.
Intuitive Surgical reported preliminary Q4 revenue of $1.93 billion, a 17% increase from the previous year, slightly surpassing consensus. The company attributed the growth to strong demand for procedures involving its da Vinci robotic surgical systems. As a result, ISRG stock surged early Wednesday, surpassing the alternate handle buy point of 340.49.
Lennar increased its annual dividend to $2 per share from $1.50 and expanded its buyback by $5 billion. Following this announcement, LEN stock rose 2% within a short consolidation period.
KB Home is set to release its fiscal fourth-quarter results on Wednesday night.
The SEC is expected to approve spot bitcoin ETFs soon, with reports suggesting a deadline of January 10. However, the SEC’s account on the X social site declared that bitcoin ETFs had been approved but later clarified that the account had been compromised.
Coinbase and Marathon Digital, two major players in the cryptocurrency industry, experienced a significant decline early Wednesday. Coinbase stock fell by 4.7%, while MARA stock sank by 1% on Tuesday.
Tesla announced the availability of the updated Model 3 in North America. Referred to as the “Highland” Model 3, it features limited exterior changes and internal refinements. The sedan had already been available in China and Europe towards the end of 2023. Prices for the updated Model 3 in the U.S. start at $38,990 for the base-model RWD variant and $45,990 for the Long Range, maintaining the same prices as the older Model 3. Notably, the RWD and LR trims are not eligible for IRA tax credits of $7,500 due to stricter battery sourcing regulations. Tesla currently does not offer a Model 3 Performance option.
TSLA stock saw a slight increase early Wednesday. Despite a decrease of 2.3% on Tuesday, the stock still remains above the 200-day line, although it fell below the 50-day moving average.
In terms of other megacap tech companies, Microsoft stock rose slightly in premarket trade, while Google stock remained relatively unchanged. Amazon stock also experienced a slight increase and was within a buy zone, along with Meta stock. Nvidia stock advanced by 1% after significant gains earlier in the week.
These developments indicate the ongoing activity and market trends for various companies, impacting the stock market and investor decisions.