Top 5 Essential Insights Before the Stock Market Opens Today

Market highlights for November 5, 2024

Stock futures climbed Tuesday morning as investors eagerly await the presidential election results and prepare for the Federal Reserve's anticipated interest rate decision on Thursday.

Boeing (BA) shares rose following the machinists union's approval of a new contract, ending a nearly two-month strike. Palantir Technologies (PLTR) saw a significant boost after reporting a 30% revenue increase driven by strong AI demand. Dollar Tree (DLTR) shares gained after announcing its CEO’s departure, while Astera Labs (ALAB), a supplier to Nvidia (NVDA), surged on impressive revenue growth.

Here are the five critical points investors need to know today.

1. Stock Futures Surge Ahead of Crucial Election Day

Early trading showed stock futures rising after Monday’s declines, as investors brace for today’s presidential election. Dow Jones futures increased by nearly 0.2%, recovering from previous losses, while Nasdaq futures climbed 0.4%, reversing earlier setbacks. Market participants are focused on election outcomes and the Federal Reserve’s expected rate cut later this week. Bitcoin also gained over 1%, reaching $68,805, while Treasury yields remained steady. Shares of a social media company majority-owned by former President Donald Trump rallied premarket, continuing a period of volatility.

2. Boeing’s Machinists Union Ratifies Contract, Ending Strike

Boeing's (BA) machinists union members voted to approve a new four-year contract, concluding a nearly two-month strike that had significantly disrupted operations. The agreement includes a cumulative 43.65% wage increase and a $12,000 ratification bonus, according to the International Association of Machinists and Aerospace Workers. The strike, which began on September 13, reportedly cost Boeing approximately $100 million daily. The company responded with layoffs and raised capital through stock and depositary share sales. Boeing shares rose nearly 2% in premarket trading.

3. Palantir Technologies Soars on Robust AI-Driven Revenue Growth

Palantir Technologies (PLTR) shares jumped 14% premarket after reporting earnings that surpassed analyst expectations. The company announced $725.52 million in revenue, marking a 30% year-over-year increase, beating forecasts from Visible Alpha analysts. Net income reached $143.53 million (6 cents per share), up from $71.51 million (3 cents per share) the previous year. U.S. commercial revenue grew 54%, and Palantir raised its full-year revenue guidance, attributing success to strong demand for AI solutions.

4. Dollar Tree Shares Rise Following CEO Resignation

Discount retailer Dollar Tree (DLTR) revealed that CEO Rick Dreiling is stepping down after two years due to health reasons. Chief Operating Officer Michael Creedon will serve as interim CEO. The company maintained its third-quarter outlook issued in September and is scheduled to report earnings on December 4. Despite a 53% decline year-to-date, Dollar Tree shares rose 4% in premarket trading.

5. Astera Labs Surges on Exceptional Revenue Growth as Nvidia Supplier

Astera Labs (ALAB) shares gained 25% after reporting strong quarterly earnings fueled by AI product demand. The company posted $113.1 million in revenue, up 47% sequentially and 206% year-over-year, despite a net loss of $7.6 million (5 cents per share). Astera Labs specializes in chip connectivity solutions that enhance AI efficiency and is a key supplier for chipmaker Nvidia (NVDA).

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