Market Overview: A Day of Minimal Change
The S&P 500 closed with a slight increase of 0.09% on Thursday, reflecting a day of minimal change in the stock market.
The Nasdaq Composite experienced a slightly better day, rising by 0.30%. The Dow Jones Industrial Average saw a modest gain, adding 36.26 points, or 0.09%. Notably, key semiconductor stocks faced a decline, with Micron (NASDAQ: MU) shares dropping over 7% and Nvidia (NASDAQ: NVDA) dipping by 1.9%. Investors are currently waiting for new inflation data to guide their next steps.
Premarket Movers:
| Company | Stock Movement | Reason |
|---|---|---|
| Nike (NYSE:NKE) | fell 15% | Forecast revenue to fall by 10% in the current quarter. Sales in the ongoing fiscal year also seen decreasing by a percentage in the mid-single digits. |
| Trump Media & Technology Group (NASDAQ:DJT) | rose 11% | CNN’s flash poll showed that the Republican candidate has outperformed US President Joe Biden in the first presidential debate held on Thursday. |
| Infinera (NASDAQ:INFN) | soared 18% | Nokia announced plans to buy the U.S. optical networking gear maker in a $2.3 billion deal, aiming to gain from investment pouring into data centres to cater to the rise of artificial intelligence. |
| SAP (NYSE:SAP) | rose about 1% | BMO Capital Markets upgraded shares to outperform and lifted its price target, citing “high visibility” into bookings and revenue. |
| Alphabet (NASDAQ:GOOGL) | fell 0.4% | Italy is asking Google to pay €1 billion ($1.07 billion) in unpaid taxes and penalties, seven years after the company settled a landmark tax dispute with Rome authorities. |
| Moderna (NASDAQ:MRNA) | rose 1.1% | The drugmaker’s respiratory syncytial virus (RSV) vaccine received a positive opinion from an advisory panel to the European Union’s medical regulator for adults aged 60 and older. |
| Berkshire Hathaway (NYSE:BRKa) | rose 0.3% | Legendary investor Warren Buffett will donate up to $5.3 billion of the company's shares to five foundations. |
Housing Market Shows Signs of Cooling
As summer continues, there are indications that the housing market may start to cool down. Various reports suggest that the rapid price gains seen recently are beginning to shrink.
Home sellers are becoming more flexible with pricing. For the first time since the start of the COVID-19 pandemic, homes sold for slightly less than their asking price, averaging 0.3% lower during the four weeks ending June 23, according to Redfin.
Supply is also increasing, with active listings now 35% higher than the same period last year. Despite these changes, home prices remain significantly higher than pre-pandemic levels, with a 47% increase since early 2020, and the median sale price is now five times the median household income.
SoftBank’s Bond Issuance to Focus on AI
SoftBank (PINK:SFTBY) announced plans on Friday to issue euro and dollar-denominated bonds to pay down debt and shift its focus to artificial intelligence investments.
The Japanese holding company plans to issue around $900 million in U.S. dollar-denominated bonds in two tranches, and 900 million euros ($962.8 million) worth of bonds, also in two tranches.
SoftBank, which operates the Vision Fund, a major technology investment arm, has indicated a desire to increase its investments in artificial intelligence companies.
Apple’s Vision Pro Launch in China
Apple's (NASDAQ: AAPL) mixed-reality headset, the Vision Pro, began deliveries in China on Friday.
The device is priced at 29,999 yuan ($4,128) in China, about 18% higher than its $3,500 retail price in the U.S. A customer in Beijing suggested that Apple CEO Tim Cook should consider reducing the price by about 10,000 yuan ($1,376), as many Chinese consumers might prefer to buy a second-hand Vision Pro due to the cost savings.
Popular posts on Chinese social media platform Weibo discussed whether the China version of Vision Pro is worth the price. Despite increasing competition from domestic brands like Huawei, Apple's Vision Pro training sessions in Beijing were fully booked from 8 a.m. to 10 p.m. on Friday.
