Stock futures were higher early Friday, with the Nasdaq looking to return to gains while and the Dow in position to break its losing streak; chipmaker Broadcom ( AVGO ) soared as it reported strong revenue growth on surging artificial intelligence (AI) sales; Costco Wholesale ( COST ) beat earnings estimates in its first report since raising its membership fee; furniture retailer RH ( RH ) jumped after posting a quarterly profit and raising demand projections; Apple ( AAPL ) shares moved higher on analyst optimism over the company's AI products.
Here's what investors need to know today.
1. Stock Futures Higher As Dow Poised to Break Losing Streak
Stock futures were higher premarket after markets gave back some recent gains in the prior session . The Nasdaq was higher by 0.5% in early trading after the tech-focused index fell below 20,000 after crossing the level for the first time . Futures trading tied to the S&P 500 was recently up by 0.3%, while Dow Jones Industrial Average futures were higher by 0.2%, coming as the index has posted six consecutive losing sessions. Investors will get import and export pricing data today. Bitcoin ( BTCUSD ) traded around $100,500. Oil futures were higher by more than 1%, while gold futures were lower by 0.9%. An indicator on interest rates, yields on the 10-year Treasury note rose to around 4.35%.
2. Broadcom Jumps as Sales Surge, AI Revenue Triples
Broadcom shares were higher by almost 15% in premarket trading after the chipmaker reported quarterly earnings that topped analysts’ expectations and full-year artificial intelligence (AI) revenue that more than tripled . The company saw fourth-quarter revenue grow 51% year-over-year to more than $14 billion, roughly in line with analyst consensus compiled by Visible Alpha. The memory chip maker reported net income of $4.32 billion or 90 cents per share, up from $3.52 billion or 83 cents per share a year earlier and above consensus. The results come after Broadcom posted a loss of $1.88 billion in the previous quarter, due in part to increased expenses related to its November 2023 acquisition of software company VMware.
3. Costco Wholesale Grows Revenue After Increasing Membership Fee
Costco Wholesale exceeded earnings expectations in its first quarterly report since the company’s increased membership fees went into effect in September. The retailer saw revenue grow 7.5% to more than $62 billion, just above the analyst consensus from Visible Alpha, while its net income of $1.8 billion or $4.04 per share was up from $1.59 billion, or $3.58 per share, a year earlier. Costco's e-commerce sales increased 13%, while same-store sales were up 5.2% in the U.S. Costco stock was little changed in premarket trading.
4. Furniture Retailer RH Soars After Turning Profit, Projecting Demand Growth
Furniture retailer RH ( RH ) stock soared in premarket trading after it swung to a profit and raised its outlook. The company posted a third-quarter net profit of $33.2 million, or $1.66 a share, turning around a loss of $2.2 million, or 12 cents a share, from the same period a year earlier. RH reported an 8% rise in third-quarter revenue, to $811.7 million. The company said it was raising its fourth-quarter outlook for revenue growth to 18% to 20%. The turnaround comes as a sluggish housing market has impacted demand for the company’s products .
5. Apple Stock Hits Record High on AI Optimism
Investors were watching Apple ( AAPL ) after it set another record closing high Thursday as optimism grows that the iPhone maker’s AI features could accelerate sales growth. This week the company rolled out additional Apple Intelligence features across its devices through its iOS 18.2 operating system, including ChatGPT integration with Siri . In a recent research note, Wedbush analyst Dan Ives said that he expects Apple to be the first company to reach a $4 trillion market capitalization on gains driven by AI demand. Shares of Apple were marginally higher in premarket trading.
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