On Wednesday, stock futures showed signs of decline following the S&P 500’s record closing high, with investors eagerly awaiting the Federal Reserve’s decision on interest rates. Here are the stocks expected to be in the spotlight:
- Intel (INTC): Intel’s shares were up by 4% after the company announced that the Commerce Department has proposed granting up to $8.5 billion in direct funding to support its semiconductor manufacturing efforts. This funding, provided under the Chips and Science Act, will aid Intel in constructing new chip factories across multiple states, including Arizona, New Mexico, Ohio, and Oregon. Additionally, Intel anticipates eligibility for federal loans of up to $11 billion and expects to benefit from tax credits on qualified investments amounting to over $100 billion.
- Chipotle Mexican Grill (CMG): Chipotle’s board approved a 50-for-1 split of its common stock, marking the first stock split in the company’s 30-year history. This decision aims to enhance accessibility to Chipotle’s stock for both employees and a broader range of investors. Pre-market trading saw Chipotle shares surging by 7.2% to $2,998. If approved by shareholders, the stock split would result in shares trading at around $56, based on Tuesday’s closing price.
- Nvidia (NVDA): At Nvidia’s GTC conference, CEO Jensen Huang highlighted the significant market opportunity in data centers, citing approximately $1 trillion worth of installed data centers globally. Nvidia aims to capture a larger share of the approximately $250 billion spent annually on data center infrastructure. Huang emphasized that Nvidia is not solely a chip maker but also provides comprehensive solutions for AI-driven data centers. Despite a 0.3% decline in pre-market trading, Nvidia had closed 1.1% higher on Tuesday.
Investors will closely monitor these developments as they navigate the market in response to the Federal Reserve’s interest rate decision and the strategic moves of key companies like Intel, Chipotle Mexican Grill, and Nvidia.
JetBlue Airways announced plans to exit several cities and reduce flights out of Los Angeles as part of a strategy to focus on its better-performing routes, citing the need to streamline operations amid fewer available aircraft. The airline revealed its intention to pull out of Bogotá, Colombia; Quito, Ecuador; Lima, Peru; and Kansas City, Mo. The news caused JetBlue shares to fall 2.4%.
Gildan Activewear experienced a slight decline in premarket trading but surged 10% on Tuesday following news that the T-shirt maker had received a “confidential non-binding expression of interest” to acquire the company. In response, Gildan Activewear established a special board committee to explore potential acquisition opportunities, engaging with select parties that expressed interest in pursuing a friendly transaction.
HealthEquity, a health-savings account company, reported a profit in the fourth quarter, with adjusted earnings of 63 cents per share surpassing analysts’ estimates of 57 cents. The company also saw a 12% increase in revenue to $262.4 million, exceeding expectations. Consequently, HealthEquity’s stock rose 1.8% in premarket trading.
JPMorgan Chase announced a 9.5% increase in its quarterly dividend, marking its second dividend hike in the past year following a record profit in 2023. The new dividend will be $1.15 per share, up from $1.05. JPMorgan shares edged up 0.2% in premarket trading following the announcement.
Riot Platforms saw a 2% increase in premarket trading, reaching $11.318, after receiving an upgrade to Overweight from Neutral, with the price target remaining unchanged at $15. The Bitcoin miner’s shares benefited from the upgraded rating.
Amcor, an Australia-based packaging company, experienced a 3% decline after announcing that its CEO, Ron Delia, would be leaving the company due to health reasons. Delia, who has been with Amcor since 2005 and served as CEO for nine years, will step down from his role.
Several companies are scheduled to report earnings on Wednesday, including PDD Holdings, Micron Technology, General Mills, BioNTech, Five Below, Chewy, KB Home, Ollie’s Bargain Outlet, Signet Jewelers, and JinkoSolar. Micron Technology, a leading provider of memory chips, is expected to report a fiscal second-quarter loss of 25 cents per share on revenue of $5.35 billion. The stock was down 0.1% ahead of the earnings report, scheduled for after the closing bell on Wednesday.