News of the day for Nov. 4, 2024
:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2172944676-905cf0480d1241829fba9f1921b58a93.jpg "Federal Reserve Chairman Jerome Powell speaks during a news conference following the September meeting of the Federal Open Market Committee at the William McChesney Martin Jr. Federal Reserve Board Building on September 18, 2024 in Washington, DC.")
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Stock futures were moving higher early Monday ahead of a busy week that includes the presidential election and a Federal Reserve decision on interest rates.
Berkshire Hathaway (BRK.A; BRK.B) shares were lower after the Warren Buffet-led conglomerate reported declining earnings while reducing its holdings of Apple (AAPL) and Bank of America (BAC). Shares of Nvidia (NVDA) and Sherwin-Williams (SHW) moved higher ahead of their inclusion in the Dow Jones Industrial Average, replacing Intel (INTC) and Dow (DOW). Palantir Technologies (PLTR) shares decline despite analysts seeing 26% jump in quarterly revenue in upcoming earnings report. Boeing (BA) shares were up ahead of a vote today from its machinists union on a new labor contract that would end a nearly two-month workers strike.
Here’s what investors need to know today.
1. Stock Futures Moving Higher Ahead of Election, Fed Rate Decision
Stock futures trended higher premarket as market watchers are bracing for a week that includes Election Day on Tuesday and a key Federal Reserve interest-rate decision on Thursday. Investors look to build on the gains from Friday’s session, when stocks moved higher after all three major indexes closed October in the red. Oil prices were higher by more than 2% after the Organization of the Petroleum Exporting Countries (OPEC), along with allies that include Russia, announced it would extend output cuts through December. Treasury yields were slightly lower, with the yield on the benchmark 10-year Treasury at around 4.28%.
2. Berkshire Earnings Fall, Cash Pile Grows As It Sells Apple, Bank of America Shares
Conglomerate Berkshire Hathaway reported that its profits fell in the third quarter as it trimmed its holdings of both Apple and Bank of America. Berkshire reported third-quarter operating earnings of $10.1 billion, down from $10.7 billion a year ago and $11.6 billion in the prior quarter. It also reported a record level of cash holdings at $320.3 billion, up from $271.5 billion in the second quarter. The Warren Buffet-led company also said it had paused share buybacks.
Berkshire Hathaway shares were down slightly in premarket trading. Apple and Bank of America also traded lower.
3. Nvidia To Replace Intel in the Dow, Sherwin-Williams Also Joins Index
Chipmaker Nvidia will replace rival semiconductor manufacturer Intel in the Dow Jones Industrial Average, while paint producer Sherwin-Williams will also join the blue-chip index in place of chemical firm Dow. S&P Dow Jones Indices said the changes to the index will come before the start of trading on Friday, Nov. 8.
Nvidia’s inclusion in the index comes as its share price has surged on demand for artificial intelligence (AI), while Intel’s shares have lost more than half of their value this year. Shares of Nvidia traded higher by more than 2% in premarket trading, while Sherwin-Williams shares gained more than 4%. Shares of both Intel and Dow traded lower.
4. Palantir Dips Ahead of Earnings as Analysts See Share Price Falling
Palantir Technologies shares were more than 1% lower ahead of the software provider’s third-quarter earnings report, due after markets close today. Analysts surveyed by Visible Alpha are projecting that Palantir will grow its revenue by 26% in the quarter to $704.9 million, while its expected earnings per share of 5 cents would be up from 3 cents per share a year earlier.
Shares of Palantir are up nearly 40% since September, but of the 12 analysts covering Palantir, only two projected a further rise in the company’s shares, with the average price target of $27.55 coming in 34% lower than its Friday closing price.
5. Boeing Shares Higher Ahead of Machinist Union Vote
Shares of Boeing edged higher in premarket trading ahead of a vote today by the aerospace giant’s machinist union that could end the strike that has lasted nearly two months. The International Association of Machinists will vote on the new offer from Boeing that includes 38% pay increases, along with a ratification bonus that workers can elect to use as part of their retirement savings. The union rejected a previous offer from Boeing that included a 35% pay hike, extending the strike that began on Sept. 13. Boeing recently raised around $19 billion in stock and depositary share sales as the company looks to shore up its finances.
