BY THE NUMBERS
U.S. stock futures were higher Thursday, the morning after the release of a key earnings report from semiconductor giant Nvidia. All three major stock indexes are trying to break a long string of weekly declines and are on pace to do so before entering Thursday's session.
The Dow Jones Industrial Average, up 2.8% for the week, is in the midst of its first eight-week losing streak since 1923. The S&P 500 and tech-heavy Nasdaq Composite have both posted seven consecutive losing weeks. Those indexes are up 1.98% and 0.7% week to date, respectively. Stocks rose Wednesday, led by the Nasdaq's 1.5% advance. (CNBC)
In the bond market, the yield on the benchmark 10-year Treasury note hovered around 2.756% on Thursday morning, ticking slightly higher by 1 basis point. Yields move opposite of prices. A basis point equals 0.01%. The muted move in Treasury yields comes after Wednesday's release of the Federal Reserve's May meeting minutes.
IN THE NEWS TODAY
Shares of Nvidia fell more than 4% in premarket trading, the day after the California-based semiconductor company issued lighter-than-expected guidance for its current quarter. CFO Colette Kress also indicated Nvidia plans to slow the pace of hiring and control expenses in the face of a difficult macroenvironment. In its fiscal Q1 results, Nvidia reported per-share earnings of $1.36 and revenue of $8.29 billion, topping Wall Street's expectations for both metrics. Investors were anticipating Nvidia's results as they look for clues on the strength of the tech industry amid fears of a broader economic slowdown; semiconductors have historically been a cyclical industry. (CNBC)
Snowflake shares fell by more than 14% in premarket trading the morning after the maker of data analytics software released earnings and guidance. Wall Street did not expect Snowflake to say it anticipates -2% adjusted operating margin for its current quarter, which may be contributing to the stock's slide. Analysts polled by StreetAccount had expected an adjusted margin of 0.3%. Snowflake shares are down more than 65% from their November highs, embodying the market's turn away from fast-growing, money-losing companies as the Fed indicated tighter policy was ahead. (CNBC)
Macy's raised its full-year profit guidance Thursday, after reporting fiscal first-quarter earnings and sales that topped Wall Street's forecasts. Shares of the department store chain jumped about 15% in the premarket. In its fiscal Q1, Macy's earned an adjusted $1.08 per share on revenue of $5.35 billion; analysts surveyed by Refinitiv had expected per-share earnings of 82 cents on sales of $5.33 billion. Macy's is the latest retailer to report this earnings season, which has been a mixed bag for the industry. Companies such as Target and Abercrombie & Fitch have disappointed investors, while Nordstrom and Williams-Sonoma have topped expectations. (CNBC)
Apple plans to raise pay for both retail and corporate workers later this year, the iPhone maker said late Wednesday. Other technology giants such as Microsoft and Google parent Alphabet have adjusted compensation structures recently, as companies compete to retain talent in a historically tight U.S. labor market. Workers also are forced to face the hottest inflation in the U.S. since the early 1980s. As part of its Wednesday announcement, Apple said its starting wage for U.S. retail employees will become $22 an hour, up from $20; the starting pay at stores in some areas will be higher than that. The hike in retail wages comes as workers at some Apple stores across the country have embarked on unionization efforts. (CNBC)
Broadcom intends to buy VMware in one of the largest technology acquisitions in history, the companies announced Thursday morning. The cash-and-stock transaction is valued at roughly $61 billion, based on where Broadcom shares closed Wednesday's session, at $531.63. The planned deal helps Broadcom further diversify away from its traditional business of designing and selling semiconductors into the higher-margin world of enterprise software. Broadcom, which made multibillion-dollar acquisitions in 2018 and 2019, expects the VMWare deal to close in its fiscal 2023; the company is currently in its third quarter of 2022. (CNBC)
STOCKS TO WATCH
Dollar General (DG) shares rallied 10.1% in premarket trading after its quarterly results beat Wall Street forecasts, and comparable-store sales fell less than expected. Dollar General also boosted its same-store sales forecast as more shoppers turn to discount stores amid elevated inflation.
Like its competitor Dollar General, Dollar Tree (DLTR) reported better-than-expected top and bottom-line results for its latest quarter with its comparable-store sales increase doubling Street forecasts. Dollar Tree surged 12.3% in premarket trading.
China-based e-commerce giant Alibaba (BABA) reported quarterly earnings and revenue that beat analyst estimates, helped by increased online demand amid China Covid-19 lockdowns. Alibaba shares added 4.5% in premarket action.
Williams-Sonoma (WSM) jumped in premarket trading, following a quarterly earnings and revenue beat and a comparable sales increase that more than tripled consensus estimates. The home furnishings retailer reiterated its prior full year guidance and – unlike many other retailers – expects profit margins to hold steady.
Box Inc. (BOX) is lower in premarket trading after reporting a mixed quarter. The cloud storage company fell 2 cents short of forecasts with adjusted quarterly earnings of 23 cents per share, although revenue did beat forecasts. Box also issued better than expected current quarter and full-year guidance.
Twitter (TWTR) shares rose following news that Elon Musk will commit more of his own wealth to finance his $44 billion takeover deal for the company. An SEC filing shows Musk committing $33.5 billion in equity, up from the prior $27.25 billion.
Nutanix (NTNX) stock plunged in off hours trading after the cloud computing company issued a weaker than expected forecast. Nutanix cited supply chain issues that impacted its hardware partners, among other factors.
Editor's note: CNBC's "Morning Squawk" newsletter will be off Friday. It will return Tuesday, May 31.