News of the day for November 8, 2024
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Nvidia CEO Jensen Huang in California in March.
Stock futures were mostly lower in early trading as election momentum faded after the Fed’s expected move to cut rates.
Nvidia and Sherwin-Williams will begin trading on the Dow Jones Industrial Average today; Arista Networks shares fell after the cloud networking giant reported declining gross margins; Airbnb fell after quarterly net income fell year-over-year despite beating revenue expectations; Shares of DraftKings fell after it cut its full-year earnings and revenue estimates as it saw a poor start to the fourth quarter.
Here’s what investors need to know today.
Momentum following this week’s election results faded, while markets were mixed before the opening bell. Nasdaq futures traded 0.3% lower, while S&P 500 futures also trended lower. Both hit record highs during Thursday’s session. Dow futures were essentially flat. The slowdown comes after a widely expected move by the Federal Reserve to cut interest rates. Treasury yields fell slightly and bitcoin was little changed, trading around $76,000. Trumpmedia (DJT) fell more than 4% in premarket trading after falling more than 23% yesterday, while Tesla (TSLA) shares moved lower after posting gains in the previous session.
Nvidia (NVDA), now the world’s most valuable company due to rising demand for its artificial intelligence (AI) chips, will begin trading on the Dow Jones Industrial Average today. It will replace rival chipmaker Intel (INTC), whose shares have lost almost half their value since the start of the year as the company undergoes a major restructuring to get the business back on track. Paint maker Sherwin-Williams will also join the Dow today, replacing chemical giant Dow (DOW). Nvidia shares fell slightly before the market, while Sherwin-Williams was little changed.
Arista Networks (ANET) shares fell more than 4% in premarket trading. The cloud networking giant reported a gross margin of 64.2%, slightly lower than the 64.9% a quarter earlier. The company posted net income of $747.9 million or $2.33 per share, up from $545.3 million or $1.72 per share a year earlier and above Visible Alpha analyst consensus. Third quarter revenue grew 7% year over year to $1.81 billion. The company also said it would split its shares 4-for-1 on December 4.
Shares of Airbnb (ABNB) fell more than 6% in premarket trading after the vacation rental market reported an unexpected drop in net income. The company posted net income of $1.37 billion, or $2.13 per share, compared to $4.37 billion, or $6.63 per share, a year earlier, below Visible Alpha’s analyst consensus. Airbnb’s quarterly revenue of $3.73 billion exceeded expectations, while the company’s Nights and Experiences Booked revenue came in at $122.8 million, up 8% from a year ago.
