5 Things to Know Before the Stock Market Opens
News of the day for August 9, 2024
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Markets look to close a wild week on an up note; Nvidia (NVDA) partner Taiwan Semiconductor Manufacturing Co. (TSM) said July revenue surged 45% year-over-year, showing buoyant demand for the chips that have helped power the artificial intelligence (AI) boom; Paramount Global (PARA) announced 2,000 job cuts and wrote down the value of its cable-TV networks by nearly $6 billion; SoundHound AI (SOUN) shares are edging lower in premarket trading after soaring 21% Thursday on an earnings beat and a deal to buy an AI software firm that expands its reach in the hot technology; and “Grand Theft Auto” maker Take-Two Interactive Software (TTWO) is rising after revenue beat analysts’ estimates. Here’s what investors need to know today.
1. US Stocks Look to End Volatile Week Higher
U.S. stock futures are edging higher as shares try to close a volatile week on an upbeat note. The week started with a global rout Monday, fueled by U.S. recession fears and an unwinding of the yen carry trade. Major stock indexes surged Thursday as data that showed the labor market remained resilient led the S&P 500 and Nasdaq Composite to notch their biggest points rise since the end of 2022. The yield on the 10-year Treasury is now at 3.91%, coming off declines earlier in the week that it them sit at 3.70%, its lowest level in more than a year.
2. TSMC July Sales Jump 45%, Buoyed by Strong AI Chip Demand
Taiwan Semiconductor Manufacturing Co. (TSM), the world’s largest contract chipmaker, said July revenue surged 45% year-over-year, showing buoyant demand for the chips that have helped power the artificial intelligence (AI) boom. Sales for the month reached 256.95 billion New Taiwanese dollars ($7.93 billion), while revenue between January and July soared 30.5%. TSMC last month reported second-quarter results that beat analysts’ estimates on booming AI demand and projected an up to 33% gain in third-quarter sales. TSMC supplies chips to both AI darling Nvidia (NVDA) and iPhone maker Apple (AAPL). TSMC American depositary receipts (ADRs) are rising almost 3% in premarket trading.
3. Paramount to Cut 2,000 Jobs, Posts $6B Write-Down
Paramount Global (PARA) wrote down the value of its cable-TV networks by nearly $6 billion, a day after Warner Bros. Discovery (WBD) also took a massive charge, as streaming services like Netflix (NFLX) continue to disrupt traditional networks. It also announced plans to save at least $500 million in annualized costs, and will cut about 2,000 jobs, or 15% of its U.S. workforce, the owner of CBS, MTV and Nickelodeon said in its earnings call. Still, investors welcomed the news of the cuts, with Paramount’s shares soaring almost 6% in premarket trading. Paramount, whose controlling shareholder, Shari Redstone’s National Amusements, struck a deal after months of talks to merge with Skydance Media last month, also reported an 11% decline in second-quarter sales to $6.81 billion, including a 17% drop in its TV Media unit that was “primarily driven by fluctuations in licensing revenues.”
4. SoundHoundAI Edges Lower After Soaring 21% Thursday
SoundHound AI (SOUN) shares reversed course and are edging lower in premarket trading after jumping 21% Thursday as the provider of voice generative artificial intelligence (AI) announced that it had acquired enterprise AI software firm Amelia for $80 million—a deal aimed at expanding its footprint in conversational AI across new verticals and brands. SoundHound also posted second-quarter profit and sales that beat forecasts, although its loss widened.
5. ‘Grand Theft Auto’ Maker Take-Two Interactive Jumps on Revenue Beat
Take-Two Interactive Software (TTWO) shares are jumping almost 7% in premarket trading after the videogame developer posted higher-than-expected revenue for its latest quarter. The company, which makes the hit “Grand Theft Auto” games, reported first-quarter fiscal 2025 revenue of $1.34 billion, above the consensus of analysts polled by Visible Alpha. Take-Two said it expects net bookings to grow sequentially in fiscal 2026 and 2027, with “Grand Theft Auto VI” set to be published in the fall of 2025.
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