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US stock futures are little changed after markets retreated from record highs on tech sector jitters; GameStop (GME) reports gains after markets close today; Oracle (ORCL) shares fall because the technology company’s turnover is lower than expected; European regulators are reportedly seeking information from Alphabet’s (GOOGL) Google in its advertising program targeting teens on metaplatforms’ (META) Instagram; and Taiwan Semiconductor Manufacturing Co. (TSM) posts strong sales in November, showing AI demand remains strong for Apple (AAPL) and Nvidia (NVDA) supplier. Here’s what investors need to know today.
U.S. stock futures are little changed after major indexes started the week on a negative note, partly due to weakness in the technology sector. Nasdaq and S&P 500 futures are trading higher, while the Dow Jones Industrial Average futures are pointing marginally lower. Investors are preparing to digest more earnings reports today and looking forward to inflation numbers later this week. Bitcoin (BTCUSD) is slightly lower at around $97,000, while gold futures are 0.6% higher. Oil futures are down 0.5% and yields on 10-year government bonds are slightly higher, at over 4.2%.
GameStop (GME) shares are moving lower in premarket trading ahead of the video game retailer’s third-quarter earnings report after markets close today. The report comes after the stock briefly rose last week after a cryptic social media post by meme stock hero Keith “Roaring Kitty” Gill apparently inspired some investors to buy in. GameStop shares are not widely covered by Wall Street analysts, with one analyst followed by Visible Alpha, giving the company an “underperform” rating and a $10 price target, well below the $27.93 price the stock hit on Monday locks.
Oracle (ORCL) shares fall 6% in premarket trading after the tech company reported quarterly revenue that exceeded analyst expectations. The cloud services giant, whose shares hit record highs last week on enthusiasm about artificial intelligence (AI) demand, reported revenues of $14.06 billion, up 9% year-over-year but lower than Visible Alpha estimates. Net income of $3.15 billion, or $1.10 per share, compared with $2.5 billion, or 89 cents per share, a year earlier, exceeded expectations. Adjusted earnings per share (EPS) of $1.47 was slightly above expectations.
European regulators are seeking more information from Alphabet’s (GOOGL) Google on the secret advertising partnership the search giant had with Instagram parent Meta Platforms (META), the Financial times reported. The deal, which has since ended, targeted Instagram ads to teens on YouTube, bypassing Google’s rules that bar personalized ads to those under 18. Shares of both Alphabet and Meta Platforms are higher in premarket trading.
Taiwan Semiconductor Manufacturing Co. (TSM) posted a 34% year-over-year increase in November sales, signaling that demand for AI-focused chips remains strong for Apple (AAPL) and Nvidia (NVDA) supplier. The company reported sales of 276.06 billion New Taiwan dollars ($8.48 billion) in November, down 12% from October figures, while sales rose 32% year-on-year between January and November has increased. U.S.-listed shares of TSMC, the world’s largest contract chip maker, are down about 1% in premarket trading but have nearly doubled this year.
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