Stock futures rise as Wall Street rally takes a breather. Updates on Micron Technology, Warner Bros. Discovery and Paramount Global merger talks, BlackBerry's revenue forecast, Boeing's 737 MAX deliveries to China, Toyota recalls, and Calliditas Ther...
Troy D. Hanson
December 21, 2023
Stock futures are on the rise today following a temporary halt in Wall Street's recent rally. The optimism surrounding anticipated interest-rate cuts from the Federal Reserve next year had propelled the market, but the previous session put a damper on the momentum. The S&P 500 experienced its worst day since September, and the Dow Jones Industrial Average broke its streak of record closing highs at five.
Micron Technology Shines Amidst Losses
Micron Technology, a prominent semiconductor company, reported an adjusted fiscal first-quarter loss of 95 cents per share. However, this loss was narrower than analysts' estimates. Notably, Micron also issued sales guidance for the second quarter, projecting around $5.3 billion at the midpoint. This figure surpassed expectations of $4.97 billion. The company believes that generative artificial intelligence will drive increased demand for memory chips in the coming years. As a result, shares of Micron jumped 6%.
Warner Bros. Discovery and Paramount Global Engage in Discussions
The chief executives of Warner Bros. Discovery and Paramount Global recently held talks regarding a potential merger between their respective media companies. While no formal discussions have commenced between the companies, this development has caught industry attention. Warner Bros. owns significant studio and television properties, including renowned cable channels CNN and HBO, as well as the streaming platform rebranded as Max. On the other hand, Paramount possesses a studio, the CBS television network, cable operations (including Nickelodeon), and a streaming platform known as Paramount+. Following this news, Warner Bros. shares rose 2.1%, while Paramount's stock experienced a slight gain of 0.1%.
BlackBerry's Fourth Quarter Revenue Forecast Falls Short
Canadian cybersecurity company, BlackBerry, announced its fourth-quarter revenue forecast of $150 million to $159 million, which is below analysts' estimates of $185.6 million. As a result, the stock experienced a decline of 7.1%. Additionally, BlackBerry reported an adjusted profit of 1 cent per share for the third quarter, surprising analysts who had anticipated an adjusted loss of 4 cents.
Boeing Nears Resumption of 737 MAX Deliveries to China
Boeing is inching closer to resuming deliveries of its 737 MAX jets to China, as Chinese airlines gear up to once again receive these aircraft. The Air Current, a reputable trade publication, reported that Boeing has received a crucial clearance from China's aviation regulator. Since March 2019, no Chinese airline has received any deliveries of the MAX. Consequently, the news led to a 2.1% increase in Boeing's stock.
Toyota Recalls 1 Million Vehicles Over Airbag Concerns
In Tokyo, Toyota saw a 4% drop in its stock price after announcing the recall of approximately 1 million Toyota and Lexus vehicles in the U.S. The recall is due to potential airbag malfunctions and impacts select 2020-2022 models. Meanwhile, U.S.-listed shares experienced a more modest decrease of 0.4%.
Calliditas Therapeutics Receives FDA Approval for Tarpeyo Treatment
Calliditas Therapeutics has obtained full approval from the Food and Drug Administration (FDA) for its Tarpeyo delayed-release capsules as a treatment for adults with primary immunoglobulin A nephropathy, a kidney disease. This announcement resulted in a 13% increase in the company's stock.
MillerKnoll Expects Lower Third-Quarter Sales
Furniture company, MillerKnoll, has projected third-quarter sales of $890 million to $930 million. This forecast represents a decline from the $984.7 million in sales recorded during the same period last year. In the second quarter, MillerKnoll reported an adjusted profit of 59 cents per share, along with sales of $949.5 million, which is an 11% decrease compared to last year. These figures fell short of analysts' expectations of $971.5 million in sales.
Upcoming Earnings Reports
Investors are eagerly awaiting Thursday's earnings reports from Nike, Carnival, Paychex, Cintas, and CarMax. These reports will shed light on the financial performance of these prominent companies.