US Market Preview | Meme Stocks Surge: GameStop +120%, AMC +108% Pre-market; BABA Stock Falls ~5% After Earnings; White House Imposes New Tariffs on Chinese Imports
M+ Global Updates 14/05/2024 20:42

Key Takeaways

  • White House Imposes New Tariffs on Chinese Imports
  • Alibaba Non-GAAP EPADS of $1.40 Misses by $0.02
  • Meme Stock Surges: GameStop +120%, AMC +108% Pre-market
  • Apple Preparing to Sell Vision Pro Headset Outside U.S. - Report

I. Market Report

Stock futures flickered near the flatline Tuesday as Wall Street braced for the release of key inflation reports.

As of 08:24 am, EST (or 20:24 in Malaysia), S&P 500 futures were flat, while Nasdaq 100 futures were down 0.17%. Dow Jones Industrial Average futures dropped 6 points.

II. Market Movers

As of 08:00 am, EST (or 20:00 in Malaysia), top pre-market movements are as follows:

Ticker Chg. Company
GME 143.61% $GameStop Corp. Class A GME$
AMC 121% $AMC Entertainment Holdings, Inc. Class A AMC$
SPWR 50.9% $SunPower Corporation SPWR$
SCPX -58.68% $Scorpius Holdings, Inc. Common Stock SCPX$
AUGX -36.76% $Augmedix Inc AUGX$
NOTV -35.5% $Inotiv, Inc. - Common Stock NOTV$

Note: We are pleased to inform you that our app now supports pre/after-market trading for US stocks. The trading hours for these sessions are as follows:

  • Pre-market: 16:00 to 21:30 in Malaysia
  • After-hours market: 04:00 to 08:00 the next day in Malaysia

Please note that regular trading hours are from 21:30 to 04:00 UTC.

III. Flash Headlines

White House Imposes New Tariffs on Chinese Imports

The White House announced new tariffs on $18 billion of Chinese imports, targeting sectors from steel to semiconductors and electric vehicles. Duties on electric vehicles will jump from 25% to 100% in 2024. These measures, part of a strategic approach to enforce trade policies against China, maintain previous tariffs and introduce new ones, with most effective this year.

USA-listed shares of Chinese EV makers Li Auto and Xpeng slid 2.2% and 1.2% at 08:09 am ET, respectively.

Producer Price Index Accelerates in April, Gaining 2.2% Y/Y

The Producer Price Index advanced 0.5% M/M in April, greater than the 0.3% increase expected and accelerating from the 0.1% decrease in March (revised from +0.2%), the U.S. Department of Labor said on Tuesday.

Fund Manager Optimism Hits Peak

According to Bank of America's global fund manager survey, optimism among fund managers is at its highest since November 2021. The survey of 245 investors managing $624 billion shows 78% believe the USA will avoid a recession, with expectations of Federal Reserve rate cuts starting in late 2024.

Brent Crude Steady; OPEC Forecasts Unchanged

Brent crude slightly declined by 0.2%, settling at $83.19 a barrel, at 07:55 am ET, amidst stable OPEC forecasts and pending USA inflation data. OPEC maintains its 2024 demand growth prediction at 2.2 million barrels per day, with unchanged 2025 forecasts. Supply growth from non-OPEC+ countries is expected to remain consistent. OPEC+ is considering whether to continue voluntary production cuts to mitigate potential price drops, with a decision anticipated at their early June meeting.

IV. Stocks to Watch

Home Depot Reports Mixed Q1 Results

Home Depot $Home Depot, Inc. HD$ : Q1 GAAP EPS of $3.63 beats by $0.04. Revenue of $36.4B (-2.4% Y/Y) misses by $250M. Comparable sales for the first quarter of fiscal 2024 decreased 2.8%, and comparable sales in the U.S. decreased 3.2%.

Alibaba Non-GAAP EPADS of $1.40 Misses by $0.02, Declaring $1.00 Annual Dividend

Alibaba $Alibaba Group Holding Ltd. Sponsored ADR BABA$ Non-GAAP EPADS of $1.40 misses by $0.02, revenue of $30.73B beats by $310M. Alibaba declares $1.00 annual dividend, $0.66 one-time dividend. As of 19:25 GMT+8, the stock's price dropped by over 5% pre-market.

Meme Stock Fever Still Running High; GameStop +120%, AMC +108% Premarket

The meme trade redux is continuing Tuesday with sharp moves in the big names for the second session in a row. As of 20:30 GMT+8, GameStop ($GameStop Corp. Class A GME$ ) +120% and AMC ($AMC Entertainment Holdings, Inc. Class A AMC$ ) +108% are rallying before the bell, with the usual sharp swings associated with the trade.

Other meme names of yore are also rallying. Koss ($Koss Corporation KOSS$ ) +28%, BlackBerry ($BlackBerry Limited BB$ ) +22%, Clover Health ($CLOVER HEALTH INVESTMENTS CORP CLOV$ ) +8% and Beyond Meat ($Beyond Meat BYND$ ) +14% all higher.

Apple Preparing to Sell Vision Pro Headset Outside U.S. - Bloomberg

Apple ($Apple Inc. AAPL$ ) has been making preparations to sell its pricey Vision Pro headset outside the United States for the first time, Bloomberg reports, with an eye to seeing whether the product can move beyond niche status.

An international rollout may come for the first time after Apple's Worldwide Developers Conference next month, the report noted. And while the exact expansion isn't clear, the company is training workers from Germany, France, Australia, Japan, South Korea, Singapore and China, Bloomberg reported.

Uber Buys Foodpanda Delivery Business in Taiwan, China for $950M

Food delivery platform Uber Eats, part of Uber Technologies ($Uber Technologies,Inc. UBER$ ) will acquire Delivery Hero's foodpanda business in Taiwan, China for $950M cash. The acquisition adds value by combining their merchants, delivery partners, and customer bases into a single app.

V. Calendar

Earnings:

$Sony Group Corporation American Depositary Shares SONY$
$U.S. Global Sea to Sky Cargo ETF SEA$
$Home Depot, Inc. HD$
$On Holding AG ONON$

Expected IPO:

$Armlogi Holding Corp. BTOC$
$Games Global Limited GGL$

Please note that the timing of IPOs is subject to change at any time (including being advanced or delayed). Investors should therefore keep up-to-date with relevant news.

Events:

19:00 GMT+8 USD OPEC Monthly Report
20:30 GMT+8 USD USD Core PPI (MoM) (Apr)

Read more on the full week's calendar: The Week Ahead: US CPI, Earnings for WMT, HD, BABA And CSCO

Finally, just a little reminder:

The regular trading hours for US stocks in the Winter Time are from 21:30 to 04:00+1 GMT+8, with pre-market trading available from 16:00 to 21:30.

Have a nice trading day!

Disclaimer:

The content is provided as general information only and should not be taken as investment advice. All the contents shall not be taken as a recommendation to buy or sell any security or financial instruments. Any action you take resulting from information, analysis, or commentary on this article is your responsibility. Please consult your investment advisor before making any investments.

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