14-day Premium Trial Subscription Try For FreeTry Free
News Digest / Latest Stock Market News / Key Insights Before Monday's Stock Market Opening Bell

Key Insights Before Monday's Stock Market Opening Bell

Alex Vellor
08:40am, Monday, May 20, 2024
Photo by Kelly Sikkema on Unsplash

JPMorgan Chase (NYSE: JPM), the nation’s largest bank, has revised its revenue expectations for 2024 upward, citing fewer anticipated rate cuts from the Federal Reserve as a key factor. The bank now forecasts it will generate $91 billion in net interest income (NII) this year, excluding trading revenue. This adjustment represents a $2 billion increase from the bank’s previous estimate in April.

The announcement of the updated revenue forecast had a positive impact on JPMorgan's stock, which rose by 1% in premarket trading on Monday, reaching new highs. This news was delivered at the start of JPMorgan’s annual investor day in Manhattan. During this event, CEO Jamie Dimon and his executive team provided detailed updates and forecasts for all major business units, giving investors insight into the bank's strategic direction and financial health.

Premarket Movers:

Ticker Company News
AAPL Apple Apple shares slipped less than 1% after Reuters reported the technology giant is implementing aggressive discounts on its iPhones in China.
GME, AMC GameStop, AMC Entertainment Shares of GameStop and AMC Entertainment fluctuated during premarket trading, following a volatile run last week amid a resurgence of the meme-stock trade.
MU Micron Technology Shares moved 2.3% higher after Morgan Stanley upgraded the semiconductor company to equal weight from underweight. The bank said it had underestimated the economic and narrative elements of artificial intelligence memory. Micron is up nearly 47% so far this year.
NVDA Nvidia The chipmaking stock added 1.4% as it readies for its closely-watched quarterly print on May 22, 2024. A handful of firms lifted their price targets on Nvidia, including Barclays and Stifel.
JCI Johnson Controls Shares rose 5% after Bloomberg News reported Elliott Management has built a more than $1 billion stake in the security and safety company. Year to date, the stock has climbed 19%.
TER Teradyne The semiconductor testing equipment stock rose nearly 3%. Goldman Sachs upgraded Teradyne to a buy rating, citing its recent strong quarter and expectations for a “cyclical recovery” within its system-on-chip design test business.

AI Takes Center Stage at Microsoft and Dell Events

On May 20, 2024, Dell Technologies World returns to Las Vegas, focusing heavily on AI.

Dell (NYSE: DELL) has been integrating AI across its product lines, enhancing everything from storage solutions to infrastructure. CEO Michael Dell and other key executives will discuss the "potential and promise of AI" in their keynote addresses. Topics at the conference will also include edge computing, modern data centers, multi-cloud services, and as-a-service solutions. The conference will review last year's launches, such as the Dell Apex updates and the unveiling of the Dell NativeEdge remote management software suite.

Microsoft (NASDAQ: MSFT) is gearing up to showcase its latest AI projects at the Build Developer Conference in Seattle, starting on May 21.

Microsoft's AI PC, designed to handle artificial intelligence tasks efficiently, features a special processing unit. This innovation is expected to enhance the performance of AI applications, making everyday tasks faster and more efficient. Qualcomm (NASDAQ: QCOM) chips are likely to power some of these next-generation Windows computers, offering robust support for AI functionalities.

Apple Discounts iPhones in China to Boost Sales

Apple (NASDAQ: AAPL) has initiated a substantial discount campaign in China, offering up to 2,300 yuan ($318) off select iPhone models. This strategic move comes as Apple aims to strengthen its position in the competitive high-end smartphone market, facing increasing pressure from local competitors like Huawei.

Photo by Dastan Khdir (Unsplash)

Running from May 20 to May 28, this discount campaign is more aggressive than the one offered in February. The highest discount, 2,300 yuan, is applied to the 1TB iPhone 15 Pro Max model. Other models, such as the 128GB base iPhone 15, also see significant price cuts, making high-end Apple products more accessible to consumers.

The increased competitive pressure from Huawei, which recently launched its new high-end smartphone series, the Pura 70, has prompted Apple to adopt this aggressive discounting strategy. The February discount campaign was successful, helping Apple to mitigate a sales slowdown in China.

About The Author

Alex Vellor