Stock Market Update
U.S. stock futures are pointing lower following the Labor Day weekend[3]. The Dow Jones Industrial Average, S&P 500, and Nasdaq are all down less than 1% in premarket trading. This comes after a strong close to August, with the Nasdaq and S&P 500 up 1% and the Dow reaching record highs last week[3].
Nvidia shares are down about 2% in premarket trading, continuing their slide after last week’s disappointing earnings report[3]. Investors are awaiting key jobs data later this week, which could influence Federal Reserve interest rate decisions.
Corporate News
Intel Restructuring Plans
Intel CEO Pat Gelsinger and other executives are reportedly preparing to present the board with plans to separate parts of the business in mid-September[3]. This potential restructuring aims to cut costs, with the programmable chip unit Altera being considered for separation. Intel shares are down 1% in premarket trading after surging 9% on Friday due to these restructuring reports[3].
Volkswagen Cost-Cutting Measures
Volkswagen announced that cost-cutting efforts may lead to factory closures amid “particularly significant challenges”[3]. The German automaker is ending its long-standing employment protection program as it prepares for potential plant closures and production reductions for some vehicle lines[3].
Tesla’s New Model Y Plans
Tesla is reportedly planning to produce a six-seat version of its Model Y vehicle in China starting in late 2025[3]. This move is seen as an attempt to increase the appeal of its best-selling EV. Tesla shares are up 1% in premarket trading[3].
International Trade
China has announced an anti-dumping probe on rapeseed imports from Canada[3]. This move comes in response to Canada’s recent imposition of 100% tariffs on Chinese-made EVs and 25% tariffs on Chinese aluminum and steel products[3]. China is the world’s second-largest importer of rapeseed, with 90% of its imports coming from Canada.
General Mills Update
General Mills reaffirmed its financial guidance for fiscal year 2025 during its participation at the 2024 Barclays Global Consumer Staples Conference[2]. The company is focusing on enhancing revenue growth and creating investment opportunities through cost savings[2].
These developments highlight ongoing challenges and strategic shifts in various sectors of the global business landscape as companies navigate economic uncertainties and competitive pressures.
Citations:
[1] https://www.hindustantimes.com/business/latest-business-today-live-updates-september-3-2024-101725329026096.html
[2] https://finance.yahoo.com/news/general-mills-reaffirms-annual-guidance-120000828.html
[3] https://www.investopedia.com/5-things-to-know-before-the-stock-market-opens-september-03-2024-8705320
[4] https://www.cnbc.com/video/2024/09/03/the-pre-market-rundown-2-september-3-2024.html
[5] https://www.cnbc.com/video/2024/09/03/the-pre-market-rundown-september-3-2024.html
[6] https://www.cnbc.com/2024/09/03/5-things-to-know-before-the-stock-market-opens-tuesday-september-3.html
[7] https://www.reuters.com/markets/deals/japanese-companies-cannot-use-national-security-cover-block-takeovers-official-2024-09-03/