1. Futures up massively
U.S. futures were largely up on Wednesday after the benchmark S&P 500 and tech-heavy Nasdaq Composite posted three-day losses in the previous session.
Through 03:27 ET (07:27 GMT), word of honor was generally flat, having won 5 points, or 0.1%, and rising 32 points, or 0.2%.
Energy and other big-name tech companies in artificial data semiconductor team Nvidia (NASDAQ:) pulled both the S&P 500 and Nasdaq Composite into the golf green on Tuesday. Recovering from a three-session selloff, Nvidia shares climbed as much as 6.8%, with the sector-wide Philadelphia Semiconductor Index rising 1.8% in the future.
Chip makers also boosted the S&P 500 Era index, with futures Google-parent Alphabet (NASDAQ:) and Facebook-owner Meta Platform (NASDAQ:) also rising, leading the communications services and products index.
Blue-chips had lagged behind, and the buying and selling date ended in the red on Monday after touching one-month majestic levels.
2. FedEx moves forward with an optimistic outlook
FedEx shares rose more than 13% in extended hours trading after the transportation giant clarified an upbeat outlook and unveiled plans for a $2.5 billion share buyback in its fiscal year.
The Memphis-based company, whose impact is considered a potential marker of the global economy’s climate, said it now expects full-year earnings growth to be in the low to mid-single digits. Analysts had called for a 3% increase.
Profits in its 2025 financial period are also noticeable at $20 to $22, in line with the ratio, topping Wall Side Road’s forecasts of $20.92 at the midpoint.
FedEx additionally reported a 7.2% increase in revenue streams to $1.34 billion with earnings of $22.1 billion in the fiscal fourth quarter. CEO Raj Subramaniam called the returns “phenomenal in this current environment”, adding that the momentum is expected to “continue into fiscal 2025”.
The price of logistics partner DHL (ETR:) remained elevated in early EU buying and selling following FedEx’s announcement.
3. The pond’s stock drowned
Pond (NASDAQ:) fell 7% on Tuesday after the swimming lake merchandise distributor cut its earnings and revenue expectations, hit by a decline in consumer spending on big-ticket jobs like home construction projects.
Louisiana-based Pond, one of the well-known names in the critical sector, indicated that construction work could be down 15% to 20% this year. The company said year-on-year sales declined by about 6.5% compared to the same period in 2023.
The company warned that the latest information shows there is “continued weak demand for new pool construction” following the end of the traditional swimming lake high season from late May to early June.
Due to pond decline on Tuesday, companies like pond pulled unhealthy friends Hayward Holdings (NYSE:) and Leslie (NASDAQ:), in addition to Lake Maker Latham Team (NASDAQ:).
4. Rivian shares surge as VW plans $5 billion funding
Rivian shares surged in extended trading after Germany’s Volkswagen announced a major investment plan in the U.S. high-end electric truck team.
The partnership, in which VW could loan Rivian up to $5 billion in capital, aims to create a 50/50 three-way partnership to share knowledge on electric car architecture and equipment. If the alliance goes through, Volkswagen will gain “immediate access” to Rivian’s Tidal EV era.
A final decision on the established order of the three-way partnership is still pending.
The move comes as VW looks to boost its EV offerings in a show of intense competition from rivals in China and US giant Tesla (NASDAQ:).
5. Crude inches up
Crude oil prices rose on Wednesday despite a surprise surge in US stockpiles as investors weighed geopolitical risks and confidence heading into the summer riding season.
At 03:26 ET, futures (WTI) were trading 0.6% higher at $81.28 a barrel, with futures term up 0.5% at $84.62 a barrel.
American Petroleum Institute data released on Tuesday showed U.S. oil stockpiles rose by nearly 0.9 million barrels in the month through June 21.
That was a surprise given expectations for a withdrawal of 3 million barrels, but it is being largely ignored as buyers wait for stocks to decline during the peak third-quarter call season. The authentic numbers from Power Knowledge Management will come after the consultation.
Both assurances are still sitting on strong gains over the next two weeks, as long-term geopolitical tensions – Israeli moves on Gaza and Ukrainian attacks on Russian refineries – have resulted in investors setting an opportunity premium in oil prices.
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