US index futures are weaker on Tuesday, pressured by deteriorating sentiment in the semiconductor sector, where AMD, Nvidia and TSMC are falling following reports that Meta Platforms has chosen Google’s TPU AI chips for future implementation instead of Nvidia’s units. The market is beginning to price in a real risk of declining dominance among semiconductor giants. Investors are also waiting for a batch of macroeconomic data to assess whether optimism around a potential Federal Reserve rate cut can hold. The US dollar is sharply lower today, weighed down by soft macro data. PPI came in below forecasts on core readings, and consumer confidence from the Conference Board unexpectedly weakened, following disappointing retail sales.
Nvidia and AMD are the weakest performers on the US market today; Oracle continues to decline as well. Alibaba (BABA.US) shares are falling despite strong earnings. Source: xStation5
Company News
- Nvidia (NVDA) is down 6% after reports that Meta Platforms is in talks to spend billions of dollars on Google’s AI chips, suggesting the search leader is gaining ground against the most profitable AI accelerator on the market. Alphabet (GOOGL) is up 4% at the open, moving closer to a $4 trillion market valuation.
- Alibaba Group (BABA) rises 4.1% after reporting better-than-expected growth in its key cloud segment, highlighting surging demand for computing power during China’s AI boom.
- Amentum Holdings (AMTM) gains 8.4% after the IT firm posted adjusted Q4 revenue that grew 10% year over year and beat expectations.
- Brinker International (EAT) is up 2.0% after Citi analyst Jon Tower upgraded the operator of Chili’s and Maggiano’s from neutral to buy.
- Sandisk (SNDK) rises 1.1% after being selected to replace Interpublic Group in the S&P 500 index.
- Spotify (SPOT) jumps 4.1% after the Financial Times reported that the company plans to raise US subscription prices in the first quarter of next year.
- Symbotic (SYM) climbs 13% after issuing a first-quarter revenue forecast that topped the average analyst estimate.
- Zoom Communications (ZM) gains 5.1% after its third-quarter results beat expectations. The company also raised its full-year guidance.
Source: xStation5
US Macro Data
Conference Board Consumer Confidence (October): 88.7 vs. Expected 93.5; Previous 94.6
Richmond Manufacturing Index (October): -15 vs. Expected -5; Previous -4
Retail Sales (September):
- Headline: 0.2% m/m; forecast 0.4% m/m; previous 0.6% m/m
- Core: 0.3% m/m; forecast 0.3% m/m; previous 0.6% m/m
- Ex-gasoline/vehicles: 0.1% m/m; forecast 0.4% m/m; previous 0.6% m/m
Producer Price Inflation (September):
- PPI y/y: 2.7% vs. forecast 2.7%; previous 2.7%
- PPI m/m: 0.3% vs. forecast 0.3%; previous -0.1%
- PPI excl. food/energy/transport y/y: forecast 2.7%; previous 2.8%
- PPI excl. food/energy/transport m/m: forecast 0.2%; previous 0.3%
- Core PPI y/y: forecast 2.7%; previous 2.8%
- Core PPI m/m: forecast 0.2%; previous -0.1%
Source: xStation5
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