Broadcom Surges on Sales Beat, Stock Split Plan
5 Things to Know Before the Market Opens
PPI Due Today, Likely Affirming Moderating Inflation Trend
1. Tesla Jumps as Musk Claims Shareholder Vote Win on $55.8B Pay Package
Tesla (TSLA) shares are surging over 6% in premarket trading after CEO Elon Musk announced that shareholders are likely to approve his $55.8 billion pay package and support Tesla's reincorporation in Texas at the company's annual shareholder meeting. This development follows a Delaware court ruling earlier this year that challenged the compensation plan, which was originally approved in 2018. Analysts warn that a rejection of the pay package could negatively impact Tesla's stock and Musk's position among the world's wealthiest individuals.
2. Adobe AI Monetization in Focus in Q2 Results After Bell
Adobe (ADBE) shares are edging higher ahead of its second-quarter earnings release. Investors are keen on updates regarding Adobe's AI monetization strategy, particularly the recently launched AI assistant subscription add-on. While Adobe's shares have declined by over 20% this year due to competitive pressures and underwhelming AI monetization, analysts are hopeful for a rebound based on strong performance in its Digital Media segment.
3. PPI Due Today, Likely Affirming Moderating Inflation Trend
The Producer Price Index (PPI) report is expected at 8:30 a.m. ET and is anticipated to show a continued trend of moderating inflation, following yesterday’s cooling May CPI numbers. Economists forecast a 0.1% rise in inflation for May, down from April’s 0.5%, with core PPI expected to increase by 0.2% compared to 0.4% in April. A softer-than-expected PPI reading could influence the Federal Reserve's future rate-cut plans, following their decision to hold interest rates steady and dial back projections for rate cuts this year.
4. Broadcom Surges on Sales Beat, Stock Split Plan
Broadcom (AVGO) shares are soaring over 13% in premarket trading after reporting strong fiscal second-quarter revenue, driven by record AI product sales. The chipmaker, benefiting from high demand in AI and its acquisition of VMware, also announced a 10-for-1 stock split to make its shares more accessible to investors and employees, following a similar move by Nvidia (NVDA).
5. Dave & Buster's Slumps as Q1 Results Undershoot Estimates
Shares of Dave & Buster’s Entertainment (PLAY) are tumbling over 10% in premarket trading after the company reported disappointing first-quarter results. The game-themed restaurant chain posted earnings of 99 cents per share, well below the expected $1.73. Revenue fell 1.5% year-over-year to $588.1 million, missing the $616 million forecast. Additionally, same-store sales declined by 5.6%, more than the anticipated 3.8%.
Market Overview
U.S. equity futures are mixed after the Nasdaq and S&P 500 closed at record highs on Wednesday. This follows encouraging CPI data showing slowed inflation in May and the Federal Reserve's forecast for a single interest rate cut by year-end. Investors will be closely watching today's PPI report and earnings announcements from key companies like Adobe.
Investors should keep a close eye on these developments as they could significantly impact market performance today.