Stock index futures rose on Friday, with Nasdaq futures leading the pack, as Broadcom results cheered investors.
Market Snapshot
At 7:54 a.m. ET, Futures tied to the Dow Jones Industrial Average gained 64 points, or 0.2%. S&P 500 futures advanced 0.4%, while Nasdaq-100 futures rose 0.8%.
Pre-Market Movers
Broadcom jumped 18% after the semiconductor company reported fiscal fourth-quarter adjusted earnings that beat analysts' estimates on revenue of $14.05 billion, up 51% from a year earlier. The company said artificial-intelligence revenue for the fiscal year soared 220%. CEO Hock Tan told analysts on a conference call that Broadcom's AI opportunity was "massive" over the next three years, noting the company has three hyperscaler customers, a term for the major cloud computing vendors. Tan estimated the AI market opportunity for accelerators and networking in fiscal 2027 will range from $60 billion to $90 billion.
NVIDIA Corp received a lift from Broadcom's earnings, with shares of the leading maker of AI chips up 1.5% following Broadcom's forecast of strong demand for AI processors.
Costco's fiscal first-quarter earnings of $4.04 a share beat Wall Street expectations of $3.79. Net revenue, including sales and membership fees, were $62.2 billion this quarter, up from $57.8 billion a year earlier but missing expectations of $66.5 billion. Same-store sales rose 5.2%, in line with estimates. Shares of the warehouse retailer were up 0.1%.
Restoration Hardware swung to a profit in its fiscal third quarter as revenue rose 8.1% to $811.7 million, and the stock soared 14% after the home furnishings company said it expects fourth-quarter revenue to increase 18% to 20% from a year earlier. RH said it expects fourth-quarter demand growth of 20% to 22% despite "the worst housing market in 30 years."
Tesla Motors rose 1.1% in premarket trading to $423.02. The stock fell 1.6% on Thursday, snapping a six-session winning streak a day after setting a record closing high of $424.77. The electric-vehicle maker has risen 68% in 2024.
EVgo Inc. was up 9% after the electric-vehicle charging company closed a $1.25 billion loan facility from the U.S. Energy Department. The company said the loan guarantee would support the nationwide deployment of about 7,500 high-power fast charging stalls.
Boeing gained 0.6% after the aerospace giant said it plans to invest $1 billion to boost production of its 787 Dreamliner jets. Boeing reiterated plans to increase production of the plane to 10 a month by 2026, up from a rate of about five a month in 2023.
ServiceTitan closed its first day of trading Thursday at $101 a share, flat with its debut price, but 42% above its initial offering price of $71. Shares of the software platform for trade businesses fell 0.5% in premarket trading to $101.28.
Salesforce.com rose 1.7% to $364.17 in premarket trading after analysts at Keybanc upgraded shares of the enterprise software company to Overweight from Sector Weight with a $440 price target. The analysts said they "have been finding increasingly positive datapoints on Salesforce in recent months." KeyBanc, on the other hand, downgraded ServiceNow to Sector Weight from Overweight. ServiceNow declined 1.1%.
Market News
Trump Transition Wants to Scrap Crash Reporting Requirement Opposed by Tesla
The Trump transition team wants the incoming administration to drop a car-crash reporting requirement opposed by Elon Musk’s Tesla Motors, according to a document seen by Reuters, a move that could cripple the government’s ability to investigate and regulate the safety of vehicles with automated-driving systems.
Musk, the world's richest person, spent more than a quarter of a billion dollars helping Trump get elected president in November. Removing the crash-disclosure provision would particularly benefit Tesla, which has reported most of the crashes – more than 1,500 – to federal safety regulators under the program. Tesla has been targeted in National Highway Traffic Safety Administration (NHTSA) investigations, including three stemming from the data.
CleanSpark Prices Offering of $550M Convertible Debt
CleanSpark, Inc. has announced the pricing of its offering of $550M aggregate principal amount of Convertible Senior Notes due 2030.
The convertible notes will be sold to the initial purchasers for resale in a private offering. The notes will not bear regular interest, and the principal amount of the convertible notes will not accrete. CleanSpark has granted the initial purchasers a 13-day option to purchase up to an additional $100M of the notes.
Elon Musk Discloses SEC Settlement Demand, Neuralink Investigation
The Securities and Exchange Commission has issued a settlement demand to Tesla (TSLA) CEO Elon Musk and reopened an investigation this week into brain-chip startup Neuralink, according to a letter shared by the billionaire.
The letter, written by Musk's counsel Alex Spiro to SEC Chair Gary Gensler, indicated that the demand related to the investigation into the executive's $44B takeover of social media platform Twitter (now X) in 2022.
Spiro said SEC staff issued a settlement demand on Wednesday, requiring Musk to "agree within 48 hours to either accept monetary payment or face charges on numerous counts."
