Five things you need to know before the market opens on Friday June 16:
1. -- Stock Futures Nudge Higher Heading Into Triple Witching Hour
U.S. equity futures nudged higher Friday, extending a move that has lifted the S&P 500 to its highest levels in fourteen months, amid bets that weakening economic data will prevent the Federal Reserve from implementing further rate hikes.
A collection of data on Thursday pointed to overall weakness in the U.S. economy as weekly jobless claims hit the highest levels since October of 2021, industrial production fell 0.2% in May and retail sales, while rising, still indicate a slowdown in consumption into the summer months.
That may likely mean the Fed's projection of at least two more 25 basis point rate hikes this year will be challenged by markets and investors, worried over the prospects for recession, over the coming weeks.
The CME Group's FedWatch still suggests a 74.4% chance of a July rate hike, but indicates no further move higher between now and December, the Fed's final policy meeting of the year.
Benchmark 2-year Treasury note yields were marked 3 basis points higher in overnight trading at 4.689%, while 10-year notes were last seen trading at 3.744% following a week where the Treasury dumped nearly $300 billion in new paper onto the bond market.
The U.S. dollar index, which tracks the greenback against a basket of six global currencies, was marked 0.09% higher at 102.04, but is down around 1.25% on the week, adding to the bullish global market sentiment.
Asia stocks, in fact, were heading for their best week since January, with the region-wide MSCI ex-Japan benchmark rising 0.84% to a four-month high, amid fading bets on Fed rate hikes and dovish policy hopes for the People's Bank of China.
Japan's Nikkei 225 was also higher on the week, rising 0.66% in Tokyo, after the Bank of Japan vowed to be 'patient' in making any changes to its ultra-low interest rate policy, which includes a 0.6% cap on 10-year government bond yields.
European stocks were marked 0.45% higher in Frankfurt following yesterday's hawkish rate hike from the European Central Bank, while Britain's FTSE 100 added 0.54% even as the pound traded at a one-year high of 1.2789 against the softer greenback.
On Wall Street, futures contracts tied to the S&P 500, which is up 15.27% for the year, were priced of a 3 point opening bell gain while those linked to the Dow Jones Industrial Average was looking at a 28 point move to the upside.
The tech-focused Nasdaq is looking at a 17 point advance ahead of today's triple-witching hour, which sees the expiry of stock options, as well as futures and options on stock indices, at 4:00 pm eastern time.
2. -- Adobe Tops Q2 Earnings, Sees AI Powering Cloud Sales
Adobe (ADBE) shares were marked firmly higher in pre-market trading after the cloud software group posted stronger-than-expected second quarter earnings with a solid near-term outlook.
Adobe said revenue for the three months ending in April rose 9.8% from last year to $4.82 billion, topping Street forecasts and powering an adjusted bottom line of $3.91 per share which handily beat analysts' estimates.
CEO Shantanu Narayen boosted the group's full-year profit forecast, citing the impact of AI-related technologies embedded in its creative cloud products, and will year sales forecast in the region of $19.3 billion at the mid-point. Earnings, Adobe said, would rise to between $15.65 and $15.75 per share, a 15 cents per share improvement at the higher end.
"Every disruptive technology has presented exciting opportunities for Adobe to innovate and increase our addressable market opportunity," Narayen told investors on a conference call late Thursday. "Our ongoing R&D investments have enabled a rapid development and deployment of Firefly, our generative AI technology. We believe generative AI will drive both further accessibility and adoption of our products."
Adobe shares were marked 3.7% higher in pre-market trading to indicate an opening bell price of $509.00 each, a move that would extend the stock's year-to-date gain to around 51.2%
3. -- Cava Group Extends Gains After Stellar NYSE Debut
Cava Group shares extended gains in pre-market trading, following a stellar debut on the New York Stock Exchange that saw its market value nearly double amid a surge in interest in the fast-casual dining group.
Cava, which set its IPO price at $22 per share on Wednesday, saw its stock open at $42 per share, while trading as high as $47.89 per share on its NYSE debut. The Washington, D.C.-based restaurant group is now valued at around $4.7 billion.
Founded in 2006, with its first restaurant opening in 2011, the Mediterranean-themed dining group acquired Zoe's Kitchen in 2018, taking its rival private in a $300 million deal.
That move expanded its reach as it rebranded the acquired restaurants under the Cava banner, which now has 263 U.S-based locations, with plans to have as many as 1,000 restaurants by 2032.
Cava shares were last seen trading 3.9% higher in pre-market trading to indicate a Friday opening bell price of $45.50 each.
4. -- Intel Shares Edge Higher After Unveiling New Manufacturing Hub in Poland
Intel (INTC) shares edge higher in pre-market trading after the chipmaker unveiled plans to build a new $4.6 billion manufacturing facility in Poland.
Intel said the factory will likely come online by 2027 and create around 2,000 new jobs as the company looks to ramp-up its global production while taking advantage of European Union subsidies amid the region's broader push to lessen its reliance on China supply chains. Reports also suggest Intel is close to agreeing terms on a $10 billion investment in Germany.
Intel posted a narrower-than-expected first quarter loss of 4 cents per share in April, on revenues of $11.72 billion, and sees sales firming to around $12 billion over the three months ending in June with modestly softer gross margins of around 33.2%.
Intel shares were marked 0.65% higher in pre-market trading to indicate an opening bell price of $36.05 each.
5. -- Virgin Galactic Shares Soar After Announcing First Commercial Space Flight Launch
Virgin Galactic Holdings (SPCE) shares soared higher in pre-market trading after the space flight group founded by billionaire investor Richard Branson announced plans for its first commercial launch.
Virgin Galactic said 'Galactic 01', a scientific research mission, would take off between June 27 and June 30 from the group's hub in New Mexico, carrying three members of the Italian Air Force, as well as the National Research Council of Italy.
"With scientific payloads on board, the spaceflight will showcase the value and power of the unique suborbital science lab that Virgin Galactic offers," the company said in a statement.
Virgin Galactic will use its VMS Eve space carrier to lift the six-passenger, two-pilot VSS Unity around 50,000 feet into the air, after which it will fire its engines and fly into its short journey into suborbital space.
Virgin Galactic shares were marked 39.2% higher in pre-market trading to indicate an opening bell price of $5.65 each.
