Monday is a relatively quiet earnings day, ahead of a slew of big tech earnings in the coming days that investors are counting on to pull markets out of their recent slump. Verizon Communications (VZ) shares are rising after first-quarter net income beat estimates; bitcoin (BTC) is trading up at about $66,000 after Friday’s much-anticipated halving event; shares of Tesla (TSLA) are declining after the electric-vehicle maker cut prices across many of its big markets, including China, where rival Li Auto (LI) followed suit; U.S. Commerce Secretary Gina Raimondo downplays Huawei Technologies’ latest microchip breakthrough; and shares of Salesforce (CRM) are rising in premarket trading following a report that talks to buy data management software firm Informatica (INFA) have fizzled. U.S. stock futures are rising. Here’s what investors need to know today.
1. Verizon Stock Rises on Q1 Net Income Beat
Verizon Communications (VZ) shares were up 1.5% in premarket trading after the telecommunications giant posted higher-than-forecast first-quarter net income. The company, which continues to work at expanding its 5G network and broadband internet businesses, reported net income of $4.72 billion, above consensus analyst forecasts of $4.61 billion. Diluted earnings per share (EPS) of $1.09 matched forecasts. Revenue of $32.98 billion was slightly below forecasts of $33.2 billion, however. Verizon’s business arm said it had its best quarterly result with 151,000 fixed wireless net additions, a 10.2% increase from Q1 2023, and also ended the period with 11.1 million total broadband subscribers.
2. Bitcoin Trades Around $66,000 After Halving
Bitcoin (BTC) was up nearly $66,000 after the much-anticipated fourth iteration of the bitcoin halving occurred a little after 8:09 p.m. Eastern on Friday. Bitcoin traded flat in the immediate aftermath of the halving of the supply-curbing event, holding steady around $63,000. After the halving, the rate of issuance of new bitcoin as well as the rewards for successful bitcoin miners are cut in half. There can only be 21 million bitcoin, and fewer new tokens entering circulation could impact bitcoin prices.
3. Tesla Shares Fall as EV Maker Cuts Prices
Shares of Tesla (TSLA) are falling more than 3% in premarket trading after the EV maker cut the prices of its cars in many of its big markets, including the U.S., Germany and China. The Elon Musk-led company trimmed the prices of the 3, Y, X, and S models. The company, which reports first-quarter results tomorrow, posted a sharp decline in first-quarter deliveries recently, and is grappling with a slump in EV demand and intense competition in China, the world’s biggest EV market. In China, the Model Y was discounted to 249,900 yuan ($34,500) from 263,900 yuan, well below the discounted new price for the car in the U.S. of $42,990. Tesla’s China cuts have already triggered a renewed price war, with Li Auto (LI) trimming prices by up to 30,000 yuan ($4,144) for all models in China. Li Auto ADRs are plunging more than 7% in premarket trading.
4. Commerce Secretary Raimondo Downplays Huawei’s Latest Phone Chip
U.S. Commerce Secretary Gina Raimondo downplayed Huawei Technologies’ latest microchip breakthrough, arguing the U.S. remains far ahead of China in the critical technology. In an interview with CBS News’ “60 Minutes” on Sunday, Raimondo said the advanced made-in-China chip in a Huawei phone last year remains “years behind what we have in the United States.” “We have the most sophisticated semiconductors in the world. China doesn’t. We’ve out-innovated China,” she said, noting that it’s “fair” to include Taiwan in her use of “we.” Huawei, which is blacklisted in the U.S., released the Mate 60 Pro smartphone in August, which is powered by a 5G-capable chip, despite a series of U.S. export controls in late 2022.
5. Salesforce Climbs as Plan to Buy Informatica Reportedly Fizzles
Shares of Salesforce (CRM) are rising more than 3% in premarket trading following a report that talks between the provider of cloud-based customer relationship management software and Informatica (INFA) to buy the data management software firm had fizzled. Salesforce had been discussing a price for Informatica in the mid-$30s a share, but the talks have fallen apart after the companies couldn’t agree on terms, The Wall Street Journal reported. Salesforce shares plunged after the deal, which would have been among its largest ever, was reported. Informatica shares are falling more than 6% in premarket trading.
