Top 5 Must-Know Market Highlights Before Trading Begins

Market update for Dec. 13, 2024

Stock futures showed positive momentum early Friday, with the Nasdaq set to rebound and the Dow poised to end its losing streak. Broadcom (AVGO) surged on impressive AI-related revenue growth, while Costco Wholesale (COST) surpassed earnings forecasts following a membership fee increase. Furniture retailer RH (RH) posted a profitable quarter and raised its demand outlook, and Apple (AAPL) shares climbed amid growing enthusiasm for its AI innovations.

Here’s what investors should focus on today.

1. Stock Futures Climb as Dow Aims to Reverse Six-Day Slide

Premarket trading indicated higher stock futures after a pullback in the previous session. The Nasdaq gained approximately 0.5%, recovering after dipping below 20,000 recently. S&P 500 futures rose 0.3%, and Dow Jones futures increased 0.2%, signaling a potential end to the Dow’s six-day losing streak. Investors await crucial import and export price data today. Bitcoin hovered near $100,500, oil futures rose over 1%, while gold futures declined by 0.9%. Treasury yields on the 10-year note edged up to around 4.35%, reflecting bond market movements.

2. Broadcom Shares Surge Nearly 15% on Triple-Digit AI Revenue Growth

Broadcom experienced a premarket jump of almost 15% after reporting quarterly results that exceeded analyst expectations. The chipmaker’s AI revenue more than tripled, driving a 51% year-over-year Q4 revenue increase to over $14 billion, aligning with analyst estimates. Net income rose to $4.32 billion ($0.90 per share), up from $3.52 billion ($0.83 per share) the previous year, surpassing consensus forecasts. This strong performance follows a prior quarter loss, partly due to VMware acquisition expenses.

3. Costco Wholesale Beats Earnings Estimates Post Membership Fee Hike

Costco Wholesale reported better-than-expected earnings in its first quarter since raising membership fees in September. Revenue climbed 7.5% to exceed $62 billion, slightly above analyst predictions. Net income increased to $1.8 billion ($4.04 per share) from $1.59 billion ($3.58 per share) year-over-year. E-commerce sales surged 13%, and same-store sales in the U.S. rose 5.2%. Costco’s stock remained steady in early trading.

4. RH Furniture Soars After Posting Profit and Boosting Demand Forecast

RH (RH) shares jumped in premarket trading following a profitable quarter and an upgraded outlook. The company reported a Q3 net profit of $33.2 million ($1.66 per share), reversing a $2.2 million loss ($0.12 per share) from the previous year. Revenue increased 8% to $811.7 million. RH raised its Q4 revenue growth forecast to 18%-20%, despite challenges from a sluggish housing market affecting demand.

5. Apple Reaches New High on AI-Driven Growth Optimism

Apple (AAPL) hit a record closing high Thursday, fueled by investor confidence in its AI capabilities. The recent iOS 18.2 update introduced advanced Apple Intelligence features, including Siri integration with ChatGPT. Wedbush analyst Dan Ives predicts Apple could become the first company to achieve a $4 trillion market cap, driven by AI demand. Apple shares edged higher in premarket trading.

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