News of the day for November 18, 2024
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US stock futures are mixed as investors digest potential regulatory changes and prepare for Nvidia’s (NVDA) earnings report later this week; Spirit airlines (TO RESCUE) shares rise in premarket trading after discount carrier files for bankruptcy; Supermicrocomputer (SMCI) shares are rising as the company reportedly has a plan to avoid being delisted; Tesla shares (TSLA) increase while Uber’s (UBER) and Lyft (LYFT) fall following reports that President-elect Donald Trump’s transition team plans to ease restrictions on self-driving vehicles; and organic carrots sold at Trader Joe’s and Wegmans have been linked to a deadly E. coli outbreak, the CDC says. Here’s what investors need to know today.
U.S. stock futures are mixed early Monday as market watchers weigh possible policy changes under incoming President Donald Trump. Nasdaq futures are slightly higher as investors consider the impact of self-driving regulatory changes on Teslas (TSLA) business, while Nvidia (NVDA) shares are heading lower ahead of Wednesday’s earnings report. S&P 500 futures are trading higher, while the Dow Jones Industrial Average futures are slightly lower. Bitcoin is up 1% and trading near $90,500. Yields on crude oil futures and U.S. Treasury bonds are also slightly higher in early trading.
Spirit airlines (TO RESCUE) shares are up about 4% in premarket trading after the discount carrier announced it had filed for bankruptcy protection and reached an agreement to restructure its debt with its bondholders. Spirit said it will continue to accept bookings and honor all tickets, credits and loyalty points. Attempts to merge with rivals JetBlue Airways (JBLU) and Frontier Airlines parent Frontier Group Holdings (ULCC) had failed, which hurt Spirit’s ability to compete with larger airlines. Through Friday, Spirit’s shares were down more than 90% this year.
Supermicrocomputer (SMCI) shares then rise 10% in premarket trading Barrons reported that the server maker is expected to submit a plan for its delayed annual report on Monday that could help avoid delisting. The company said it received a letter from Nasdaq on September 17 warning it will be delisted if it does not file the delinquency report within 60 days or by November 16, making Monday the effective date for the filing. Supermicro shares have taken a hit in recent months due to regulatory concerns after allegations of accounting manipulation and other issues.
Advisors to President-elect Donald Trump are reportedly considering a federal framework for self-driving vehicles, potentially accelerating the deployment of the technology currently being developed by Tesla.TSLA). Bloomberg said consultants are looking for candidates who can rework federal regulations to allow vehicles that don’t have foot pedals or steering wheels, like the kind Tesla is developing. Shares of Tesla are up more than 6% in premarket trading, while those of Uber apps (UBER) and Lyft (LYFT) are down about 2% and 3% respectively.
The Centers for Disease Control and Prevention (CDC) has issued a warning about organic whole carrots and baby carrots sold by California-based Grimmway Farms that are believed to be the source of an E. coli outbreak in 18 states. According to the CDC report, one person has died and 15 people have been hospitalized after being infected by the strain. All bags of contaminated produce sold at Trader Joe’s and Costco (COSTS), among others, have been recalled from stores. The CDC issued a similar warning last month when contaminated chopped onions were used at McDonald’s (MCD) Quarter Pounders were believed to be the source of an E. coli outbreak.
