5 Things to Know Before the Stock Market Opens

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.

1. Markets Mixed as Momentum Slows Following Rate Cut

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.

2. Nvidia, Sherwin-Williams Set to Start Trading on the Dow

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.

3. Arista Networks Falls on Lower Gross Margin

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.

4. Airbnb Shares Drop on Unexpected Decline in Net Income

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.

5. DraftKings Falls After Cutting Outlook on Weak Start to Quarter

Shares of DraftKings (DKNG) moved 5% lower in early trading after the company reduced its outlook for the current quarter. The sports betting company cited “customer-friendly sport outcomes” in its fiscal fourth-quarter as the reason it lowered its fiscal 2024 guidance, now projecting a revenue range of $4.85 billion to $4.95 billion, down from the forecast it offered in August. The company its full-year adjusted EBITDA guidance to between $240 million and $280 million, compared to a prior outlook of between $340 million and $420 million. In its earnings report, DraftKings reported third-quarter revenue growth of 39%. Its results arrive as consumers are showing an appetite to put their money into markets other than stocks and bonds—like prediction markets.

Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.