Top 5 Key Insights Before Stock Market Opens Today

Market update for August 16, 2024

U.S. stock futures remain steady following a robust week; Walmart (WMT) dips slightly after hitting a record close fueled by strong consumer spending; Applied Materials (AMAT) shares decline despite impressive AI-driven quarterly sales; July housing starts data expected to show modest growth; and Dell Technologies (DELL) continues its upward trend after JPMorgan names it a top AI investment pick. Here’s the latest investors need to know.

1. U.S. Stock Futures Hold Steady After a Strong Week

U.S. stock futures are largely unchanged as markets prepare to close a week marked by gains. The S&P 500 has surged 3.7%, the Nasdaq climbed 5%, and the Dow Jones increased 2.7% through Thursday’s close, rebounding from last week’s volatility caused by concerns over a U.S. economic slowdown and shifts in the yen carry trade. Consumer resilience and upbeat retail sales data have supported this positive momentum.

2. Walmart Pulls Back Slightly After Record-Breaking Close

Walmart shares are retreating marginally in premarket trading after a historic closing high Thursday, driven by better-than-expected quarterly earnings and an optimistic full-year outlook. The retail powerhouse benefits from cost-conscious shoppers seeking value, with CEO Doug McMillon noting a clear divide: lower-income customers focus on savings while higher-income buyers prioritize convenience.

3. Applied Materials Drops Despite AI-Driven Record Revenues

Shares of Applied Materials (AMAT) fell 2% premarket despite reporting record third-quarter sales propelled by the AI boom. The semiconductor equipment leader forecasts Q4 revenue around $6.93 billion and EPS between $2 and $2.36, aligning with analyst expectations. CEO Gary Dickerson highlighted strong AI demand positioning the company for sustained market outperformance. The stock has surged over 30% year-to-date.

4. July Housing Starts Forecast to Grow More Slowly

Housing starts data, expected at 8:30 a.m. ET, likely indicate a slight slowdown in growth compared to June. Economists surveyed by Dow Jones Newswires and The Wall Street Journal anticipate an annualized rate of 1.34 million units, down marginally from June’s 1.35 million. The housing market continues to face challenges in inventory buildup amid elevated interest rates.

5. Dell Technologies Gains Momentum on AI Growth Prospects

Dell Technologies (DELL) shares gained about 1% in premarket trading after extending recent advances, buoyed by JPMorgan’s addition of the stock to its "Analyst Focus List". The firm emphasized Dell’s long-term AI growth potential. Shares rose 7% Thursday to $110.21, contributing to a 19% weekly increase and a 44% rise since the start of 2024. Over 75% of analysts tracked by Visible Alpha recommend buying, with a consensus price target of $152.44.

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