Stock futures are pointing lower on Tuesday following a rally in tech stocks to start the week. Despite this, the Dow Jones Industrial Average managed to rebound and close higher for a third-straight session.
Boeing Faces Setback
Boeing is facing a setback as it was down 0.8% in premarket trading. This comes after United Airlines and Alaska Air discovered loose parts on Boeing 737 MAX 9 jets during inspections following a recent incident. In light of this, an Alaska Air Boeing 737 MAX 9 had to make an emergency landing due to a lost “emergency door plug” midair. The incident prompted the Federal Aviation Administration to issue a temporary grounding order for all Boeing 737 MAX 9 planes, causing shares of the aerospace giant to fall 8% on Monday.
Nvidia Hits All-Time High
On the other hand, Nvidia saw a surge in its stock price as it closed Monday at an all-time high of $522.53 and rose 6.4% during the session. In premarket trading, the chip maker’s stock was up 0.2%. Nvidia made waves at the CES conference on Monday with its debut of new offerings in video gaming and automotive technology.
Juniper Networks in Acquisition Talks
Juniper Networks experienced a significant jump of 24% to $37.48 after news broke that Hewlett Packard Enterprise (HPE) was in advanced talks to acquire the networking-equipment company for approximately $13 billion. According to sources cited by The Wall Street Journal, an official announcement about the potential deal could be expected this week. However, HPE shares declined 7.7% amid the reports.
These developments highlight the ongoing dynamics within the stock market, particularly in the tech sector. Investors will be watching closely to see how these stories unfold and how they may impact future market trends.
Unity Software Announces Workforce Reduction and Core Business Refocus
Unity Software, a leading videogame developer, has revealed plans to lay off approximately 1,800 employees, accounting for 25% of its workforce. The company’s decision to refocus on its core business has prompted these changes. In November, Unity had indicated that further job cuts and the discontinuation of certain products were likely. Earlier in the year, the company faced criticism from customers following the introduction of a new pricing structure. Unity was forced to backtrack on this plan and issue an apology. Despite these recent challenges, shares have risen by 3.6%.
Microchip Technology Expects Sales Downturn
Microchip Technology saw a 4.2% decrease in its stock after announcing that its fiscal third-quarter sales are projected to fall below expectations due to a weakening economic environment. The company now anticipates a 22% decline in revenue compared to the previous quarter, revising its previous forecast of a 15% to 20% drop. Analysts had predicted a 17% quarter-over-quarter decline in revenue.
Extreme Networks Lowers Revenue Outlook
Cloud-networking company, Extreme Networks, has revised its revenue outlook for the fiscal second quarter. The company now expects revenue between $294 million and $297 million, down from the previous range of $312 million to $327 million.
Match Group Receives Boost from Elliott Investment Management
Match Group, the owner of popular dating platforms such as Tinder and Hinge, experienced a rise of 9.8% in its stock value. The Wall Street Journal reported that Elliott Investment Management has accumulated a significant stake in Match, estimated at $1 billion. Elliott plans to prompt the company to undertake measures aimed at enhancing its underperforming stock.
Upcoming Earnings Reports
Earnings reports are anticipated on Tuesday from Albertsons Cos., TD Synnex, Acuity Brands, and Tilray Brands. These reports will provide valuable insights into the financial performance of these companies.