News of the day for October 16, 2024
Published October 16, 2024
08:06 AM EDT
Peter Boer / Bloomberg via Getty Images
U.S. stock futures are little changed after Tuesday’s tech selloff; ASML Holding (ASML) shares are continuing to move lower in premarket trading after the semiconductor-gear manufacturer’s stock tanked yesterday as it reported third-quarter results a day earlier than expected; shares of Nvidia (NVDA) are rebounding slightly after stepping back from record highs as chipmakers struggled on industry worries; Stellantis (STLA) reports a 20% decline in Q3 worldwide shipments; and United Airlines (UAL) announces a $1.5 billion share buyback program as it reports better-than-expected earnings. Here’s what investors need to know today.
1. US Stock Futures Little Changed After Tech, Energy Selloff
U.S. stock futures are little changed in premarket trading Wednesday following a selloff yesterday on sharp declines for technology and energy shares. Crude oil futures are lower after Tuesday’s decline amid easing tensions in the Middle East and news that the International Energy Agency (IEA) lowered its outlook for energy demand growth. Gold futures are higher.
2. ASML Stock Falls Further After Tumbling on Weak Outlook
New York Registry Shares of ASML Holding (ASML) are declining a further 3% in premarket trading after the Dutch semiconductor-equipment maker projected that its 2025 net sales would come in lower than previously projected. The company released its earnings report a day early on Tuesday, revealing a weaker-than-expected outlook, which sent its shares tumbling 16%. The company also reported third-quarter net bookings that were well below analyst estimates.
3. Nvidia Stock Rebounds After Stepping Back From Record High
Shares of Nvidia (NVDA) are up about 1% in premarket trading after the tech giant’s shares fell nearly 5% Tuesday. Shares had reached an all-time closing high the prior session after bullish comments from analysts who cited the chipmaker’s dominance in the accelerator market. Investors also were spooked yesterday by a report that the U.S. could curb AI chip sales to some Middle East countries. Shares of Advanced Micro Devices (AMD) also are rebounding slightly after dropping 5% Tuesday.
4. Stellantis Reports 20% Decline in Q3 Shipments
Big Three automaker Stellantis (STLA) reported shipments dropped 20% year-over-year in the third quarter, including a 36% decline in deliveries to North America amid high dealer inventory levels. The results come soon after the maker of Jeep and Chrysler issued a profit warning, citing “deterioration in global industry dynamics” and competition from Chinese rivals. Shares of Stellantis are edging higher in premarket trading.
5. United Airlines Announces Share Buybacks as Results Beat Estimates
United Airlines (UAL) announced a $1.5 billion share buyback plan while reporting third-quarter earnings that were better than analyst estimates. The airline posted quarterly revenue of $14.84 billion, better than consensus estimates of analysts polled by Visible Alpha, while its adjusted earnings per share (EPS) of $3.33 also beat projections. United’s results stand in contrast to the weaker-than-expected earnings from rival Delta Air Lines (DAL). Shares of United are up by more than 1% in premarket trading.
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