This week has seen significant developments across various sectors. Amazon is set to enhance its Alexa voice assistant with AI, introducing a subscription fee for the service. In the job market, initial jobless claims have dropped, indicating a stronger labor market. Meanwhile, General Motors (GM) has launched an all-electric version of its Chevrolet Equinox, marking a significant step in the company’s EV strategy.
Amazon Enhances Alexa with AI
Amazon (NASDAQ: AMZN) is upgrading its voice assistant, Alexa, with generative artificial intelligence (AI). This enhancement aims to make Alexa more conversational, two sources familiar with the matter told CNBC. Unlike previous updates, this one will come with a monthly subscription fee and won't be part of Amazon Prime subscriptions.
The upgrade, set to launch this year, is a strategic move to compete with AI-driven offerings from Google and OpenAI, both of which have introduced AI-powered chatbots and voice features.
Drop in Initial Jobless Claims
The number of Americans filing for first-time unemployment benefits fell last week, surpassing expectations.
Initial jobless claims in the U.S. dropped to 215,000 for the week ending May 18, down from the revised 223,000 the previous week. Economists had anticipated the figure to be 220,000. The four-week moving average, which smooths out weekly fluctuations, decreased slightly to 219,750 from 218,000. This decline suggests a strengthening labor market.
Premarket Movers:
| Nvidia (NASDAQ:NVDA) | Stock soared over 7% after the chipmaker’s first quarter earnings blew past estimates, as well as offered up a stronger-than-expected revenue forecast for the current quarter, as it continued to benefit from strong demand in the growing AI industry. |
| Advanced Micro Devices (NASDAQ:AMD) and Broadcom (NASDAQ:AVGO) | Rose over 2% each, with Nvidia’s peers benefiting from the continued AI demand, while memory chip maker Micron Technology (NASDAQ:MU) rose 3.8% and chip designer Arm Holdings (NASDAQ:ARM) rose nearly 4%. |
| News Corp (NASDAQ:NWSA) | Stock rose 2% after the news giant signed a content sharing deal with OpenAI, granting the latter access to content from several of its biggest publications. |
| Snowflake (NYSE:SNOW) | Stock rose 3.9% after the data cloud analytics firm forecast second-quarter product revenue above estimates and raised its annual expectations. |
| DuPont (NYSE:DD) | Stock climbed 5.4% following the U.S. conglomerate's announcement of plans to split into three publicly traded companies. |
| Taiwan Semiconductor Manufacturing (NYSE:TSM) | Stock rose 2.7% after the Taiwanese contract chipmaker forecast annual revenue growth of 10% in the global semiconductor industry, excluding memory chips. |
| Medtronic (NYSE:MDT) | Stock rose 1% after the medical device maker beat estimates for quarterly profit, aided by a post-pandemic pickup in surgical volumes at hospitals that boosted demand for its medical devices. |
GM Unveils Electric Chevrolet Equinox
General Motors (NYSE: GM) has launched an all-electric version of its popular Chevrolet Equinox.
The crossover EV, which has been a part of GM's lineup for 20 years, is now available with higher-priced models ranging from $43,000 to $51,100. The entry-level Equinox LT model, starting at about $35,000, is expected to be released later this year.
This rollout tests the waters for GM's new "Ultium" EV technologies and the broader acceptance of electric vehicles in the mass market, as demand has been slower than anticipated.
