Stock futures are ticking higher after markets rose Wednesday, signaling some renewed momentum in the AI trade; Tesla shareholders are watching today’s vote on CEO Elon Musk’s pay package; airline stocks are slipping on the government’s plans to reduce air traffic amid staffing issue related to the shutdown; Snap shares are jumping after it reported strong quarterly results and announced a deal with AI chatbot Perplexity; DoorDash is down after it delivered worse-than-expected earnings and a downbeat outlook.
Here’s what you need to know today.
1. Stock Futures Tick Higher as Investors Shake Off Some AI Worries
Stock futures are edging higher in early trading. Major market indexes pulled higher in yesterday’s session as investors shook off some of the worries over the artificial intelligence trade that led to a pullback earlier this week. Futures associated with the S&P 500 were up by 0.2% after that index gained 0.4% in yesterday’s session, while futures tied to the Nasdaq 100 rose by 0.1% after the tech-focused index moved higher by 0.7% on Wednesday. Futures tied to the Dow Jones Industrial Average were little changed, ticking just a bit higher, after that index moved up by 0.5% in the prior session.
Bitcoin traded at over $103,200, ticking below yesterday’s levels. Yields on the 10-year Treasury note were at 4.14%, slightly lower than yesterday’s for the influential gauge of consumer borrowing costs. Gold futures continued to trade at more than $4,000 an ounce after dipping lower earlier this week.
2. Tesla Shareholder Vote Expected Today on Musk’s Trillion Dollar Pay Package
Tesla (TSLA) shares are inching higher ahead of an expected shareholder vote today that is likely to determine whether the electric vehicle maker will award CEO Elon Musk a trillion-dollar pay package. While several major investment groups have voted against Musk’s pay package, others have backed it, as has company leadership, which has said it needs Musk at the helm to help usher in new advances in robotics and artificial intelligence. A preliminary tally of this year’s 14 proposals, which include the pay package, is expected after a meeting set to start at 3 p.m. central time. Tesla shares, which came into today’s trading session up 14% so far this year, were higher by 0.4% in premarket trading.
3. Airline Stocks Slip as Government Reduces Air Traffic Amid Shutdown Staffing Issues
Airline stocks are falling after the government said it would reduce air traffic to manage staffing levels that have been impacted by the ongoing U.S. government shutdown. The U.S. government will reduce air traffic at 40 major airports by 10% to help with staffing issues as the government shutdown continues to put pressure on transportation employee staffing levels, according to news reports. Transportation Secretary Sean Duffy said in a news conference that the reductions would start Friday and that the 40 airports would be announced today.
Shares of Delta Air Lines (DAL) Southwest (LUV) and JetBlue (JBLU) were lower by less than 1% in early trading, while United Airlines (UAL) and American Airlines (AAL) dropped more than 1% on the news.
4. Snap Soars Higher on Solid Quarterly Report, Perplexity Integration Deal
Snap (SNAP) shares are soaring in premarket after the social media app posted better sales, heavier traffic and narrower losses than analysts had expected. The social media firm also announced a deal to integrate AI search engine Perplexity into its search features. Snap’s third-quarter revenue of $1.5 billion was ahead of analyst projections of $1.49 billion compiled by Visible Alpha, while its adjusted losses per share of 6 cents was better than the 12 cents a share in losses that analysts expected.
The company reported 477 million global active daily users, resulting in an average revenue per user of $3.16, which was better than the projections of 476.3 million global users generating $3.13 apiece. Snap shares have lost nearly a third of their value so far this year, but were up by almost 18% in premarket trading.
5. DoorDash Slips on Weak Earnings, Disappointing Outlook
DoorDash (DASH) shares are falling in early trading after its quarterly earnings came in lower than expected, despite delivering more orders and bringing in more revenue than analysts projected. DoorDash reported that fiscal fourth-quarter adjusted earnings per share came in at $0.55, while analysts tracked by Visible Alpha were forecasting $0.67. Its 776 million orders and revenue of $3.45 million were above the Visible Alpha consensus.
The food delivery service also disappointed investors with its fourth quarter outlook, as its adjusted EBITDA guidance of between $710 million and $810 million was below expectations of $849.7 million. DoorDash shares are higher by 40% so far this year, but are down from the highs it hit in early October. Shares fell by more than 10% in premarket trading.