News of the day for Nov. 27, 2024
Investors are awaiting today's release of the Personal Consumption Expenditures (PCE) inflation report for October, which is expected to show increasing price pressures; U.S. stock futures are little changed as investors await economic data and the Thanksgiving holiday; Dell ( DELL ) stock is plummeting in premarket trading after the computer maker's quarterly revenue missed estimates; CrowdStrike ( CRWD ) shares are moving lower after it swung to an unexpected loss; HP ( HPQ ) stock is dropping after the PC and printing company's earnings forecast for the current quarter was lower than analysts had projected. Here's what investors need to know today.
1. PCE Inflation Data Seen Having Moved Higher in October
Economists are projecting that today's 10 a.m. ET release of the PCE report will likely show annual inflation rose to 2.3% in October, according to a survey of economists by Dow Jones Newswires and The Wall Street Journal . The increase from 2.1% in September would keep the inflation rate above the Federal Reserve 's target, which could complicate the central bank's plans to gradually lower interest rates as price pressures ease. "Core" inflation, which excludes volatile prices for food and energy, is expected to have risen 2.8% over the year, up from 2.7% in September.
2. US Stock Futures Little Changed Ahead of Thanksgiving Holiday
Stock futures are little changed as investors await economic data and prepare for Thanksgiving market closures tomorrow. After the Dow Jones Industrial Average set another record closing high in the prior session , the index's futures are flat, while those of the Nasdaq and the S&P 500 —itself having posted a new record-high close Tuesday—are slightly lower. In addition to the inflation report, investors are also watching for updated data on third-quarter Gross Domestic Product (GDP) , pending home sales, and business inventories. Bitcoin ( BTCUSD ) is up about 1% to trade above $93,000. Gold and crude futures also are higher, while 10-year Treasury yields are lower.
3. Dell Stock Tumbles as Revenue Falls Short of Estimates
Dell Technologies ( DELL ) stock is sinking more than 11% in premarket trading Wednesday, a day after the computer and server maker reported quarterly sales that fell short of forecasts . The company delivered revenue of $24.4 billion, a 10% rise year-over-year but below the consensus estimate of analysts surveyed by Visible Alpha. Its net income of $1.13 billion or $1.58 per share also rose and beat estimates. Server and networking revenue soared 58% to $7.36 billion, driven in part by demand for artificial intelligence (AI) servers.
4. CrowdStrike Stock Dips After Cybersecurity Firm Swings to Loss
CrowdStrike Holdings ( CRWD ) stock is falling 3.5% in premarket trading after the cybersecurity firm reported an unexpected loss for the third quarter on increased expenses. The company posted a loss of $16.8 million or 7 cents per share from a profit of $26.7 million or 11 cents per share last year, falling short of Visible Alpha consensus estimates. Its revenue of $1.01 billion was up 29% year-over-year and above expectations. The results come as CrowdStrike continues to deal with costs tied to the fallout from a faulty software update in July that affected Microsoft ( MSFT ) Windows-based systems across the world and led to the grounding of thousands of flights.
5. HP Stock Drops After Current-Quarter Earnings Outlook Falls Short
HP (
HPQ
) stock is sinking nearly 9% in premarket trading after the computer and printer maker forecast
earnings per share (EPS)
of 57 cents to 63 cents for the current fiscal quarter,
below consensus
of 72 cents. The company saw its fourth-quarter revenue grow 1.7% year-over-year to $14.1 billion, higher than the Visible Alpha consensus. Net income came in at $900 million or 93 cents per share, compared to $1 billion or 97 cents per share a year ago, also above estimates.
