A bullish outlook for Micron Technology (MU) has pushed its and its peers’ shares higher in pre-market trading. Costco Wholesale (COST) is expected to post both a quarterly profit and revenue after the bell. Meta Platform (META) stock hits a new all-time high. OpenAI plans to reorganize into a for-profit organization, reportedly giving CEO Sam Altman a large stake in the company. And Federal Reserve Chairman Jerome Powell will speak today for the first time since last week’s massive interest rate cut. After indexes closed mixed on Wednesday, U.S. stock futures, particularly the tech-heavy Nasdaq, are rising on Micron’s rosy outlook. Here’s what investors need to know today.
1. Micron’s outlook lifts chipmaker and peers
Shares of Micron Technology (MU) soared 16% in premarket trading after the memory chip maker reported better-than-expected sales and guidance. Nvidia (NVDA) Partners turned profitable in its fiscal fourth quarter, with revenue nearly doubling driven by “robust AI demand,” according to CEO Sanjay Mehrotra. Micron’s results boosted other chipmakers and suppliers in the semiconductor industry, with ASML Holdings (ASML) up 4% and Advanced Micro Devices (AMD), Broadcom (AVGO) and Nvidia all up about 2%.
2. Costco expects sales and profits to increase in the fourth quarter
Costco Wholesale (COST) is scheduled to report fourth-quarter results after the closing bell on Thursday, with analysts expecting year-over-year growth in sales and bottom line. This is the company’s first performance since raising membership fees for the first time in seven years. Shares have been creeping higher in premarket trading, and are up nearly 40% so far this year, although analysts expect the stock to rise little further.
3. Meta stock continues to rise after hitting a new all-time high
Meta Platforms (META) stock, which hit an all-time high on Wednesday, rose another 2% in pre-market trading after the company announced new products at its annual Connect conference. In his keynote, CEO Mark Zuckerberg announced new features in the company’s low-cost Quest 3S headset, Orion augmented reality glasses, smart glasses made in partnership with Ray-Ban, and new AI capabilities.
4. OpenAI plans to reorganize into a for-profit company, sells Altman stock
Microsoft (MSFT)-backed OpenAI is reportedly planning to reorganize into a for-profit organization as it continues to lose key talent. According to Reuters, which first reported the plan, OpenAI is in talks to give CEO Sam Altman up to $150 billion worth of stock, and Bloomberg reports that the company We informed him that we are considering giving him a 7% stake. Meanwhile, Mira Murati, OpenAI’s longtime chief technology officer, was among those who announced her retirement on Wednesday.
5. Statements by Mr. Powell and other Fed chairmen
It’s a big day for Fed speakers, including Fed Chairman Jerome Powell, who will give a pre-recorded opening statement at the 2024 U.S. Treasury market meeting. Powell’s speech will be his first since announcing a major rate cut last week. Investors are also keeping an eye on comments from New York Fed President John Williams and Fed Vice Chairman Barr on the health of the U.S. economy. Data released today includes revised estimates for second quarter GDP.
