Nasdaq Slips, Dow Higher Ahead of Fed Minutes

Industrial Production Rose in July Amid a Surge in Auto Manufacturing

16 minutes ago

U.S. industrial production rose 1% in July after two months of declines. 

Automobile and car parts manufacturing jumped 5.2% last month, putting it more than 10% above the same time last year. Utilities output also surged as high temperatures across the country increased demand for cooling.

Capacity utilization also edged up to 79.3%, a 1.6% increase over last year and just slightly below its long-run average of 79.7%.

Retailer Earnings Show Shifting Consumer Demand

41 minutes ago

U.S. retail is holding up as shoppers continue to spend on goods and services despite more than a year of elevated inflation. But retailer earnings show where they shop and what they buy is changing. 

Consumers are pulling back on big-ticket items and looking for discounts. Home Depot (HD) on Tuesday reported a 2% decline in revenue from last year’s second quarter despite “strength in categories associated with smaller projects.”

Target (TGT) today reported the same trend: sales in discretionary categories fell while its “frequency business”—including essentials, beauty products, and food and beverages—grew.

Meanwhile, TJX Companies Inc. (TJX), the owner of discount stores T.J. Maxx, HomeGoods, and Marshalls, today said revenue increased 8% over last year in the second quarter, with comparable store sales increasing 6%.

The amount that consumers spent on goods and services increased every month last quarter and unexpectedly jumped 0.7% in July. Yet sales of motor vehicles and their parts fell 0.3% last month, while furniture sales fell 1.8%, and electronics and appliance sales 1.3%.

The pivot from large, discretionary purchases to essentials is unlikely to reverse for a while, with wage growth slowing, interest rates expected to remain elevated for some time, and student loan payments set to resume in September. 

Occidental Petroleum to Acquire Carbon Capture Technology Supplier for $1.1 Billion

1 hr 18 min ago

Oil and gas producer Occidental Petroleum (OXY) announced on Tuesday its plans to acquire Canadian carbon capture technology supplier Carbon Engineering Ltd. for $1.1 billion.

Carbon Engineering’s equity will be purchased for cash in three roughly equal annual payments, with the first due when the deal is finalized. The transaction is expected to close before the end of the year, subject to court reviews and regulatory approvals in the U.S. and Canada.

Occidental aims to build about 100 direct air capture (DAC) plants that can strip carbon dioxide from the air and use it to manufacture products such as concrete or aviation fuel. The CO2 can also be buried underground. The two companies have been working on DAC technologies since 2019.

Occidental shares gained 1% in early trading Wednesday.

-Fatima Attarwala

Stocks Making the Biggest Moves Premarket

2 hr 24 min ago

Gainers:

• DLocal Ltd. (DLO): Shares of the online payments company gained more than 30% after it reported better-than-expected revenue in the second quarter on the strength of sales growth in Brazil, Asia, and Africa. 
• Cava Group Inc. (CAVA): The fast-casual chain gained 9% after beating analysts’ second-quarter revenue and earnings estimates. Earnings were $0.21 a share, compared with forecasts of $0.02.
• Target Corp. (TGT): The retailer’s shares gained 7% despite missing on second-quarter revenue and lowering its full-year outlook. Nonetheless, it posted earnings of $1.80 per share, beating analysts’ estimates of $1.39 a share.
• Coinbase Global Inc. (COIN): Shares of the cryptocurrency exchange rose 3% after it received approval to offer cryptocurrency futures in the U.S. The company had been waiting two years for a decision from the National Futures Association.

Losers:

• VinFast Auto Ltd. (VFS): The Vietnamese electric car maker’s shares fell 13% a day after their first day of trading on the Nasdaq. The stock soared more than 300% yesterday to close around $37. 
• JD.com Inc. (JD): The Chinese e-commerce company’s American depositary receipts fell about 5% despite beating earnings expectations. Investors are fleeing Chinese equities amid a slowdown in consumer spending and turmoil in the real estate and financial sectors.
• Tesla Inc. (TSLA): Shares of the electric vehicle leader fell 2% after it cut prices in China for the second time this week. 

5 Things to Know Before Markets Open

3 hr 3 min ago

Here’s what investors need to know to start their day:

1. Intel (INTC) is ending its planned $5.4 billion acquisition of Israel-based chipmaker Tower Semiconductor (TSEM) after delays in getting regulatory approval for the deal that was struck in 2022.
2. Housing starts ticked up to 1.45 million for July from 1.43 million in the prior month, while building permits of 1.44 million were flat month-over-month.
3. Fast-casual restaurant chain Cava Group (CAVA) delivered better-than-expected earnings and revenue after it added 16 new restaurants in the quarter and kept menu price hikes to around 4%.
4. Shares Coherent Corp. (COHR) plunged 22% in pre-market trading after the optoelectronics company issued forward guidance that was below analyst expectations.
5. Shares of DLocal (DLO) were up 29% in pre-market trading after the online payments company reported second-quarter revenue that beat expectations after the Uruguay-based company said it grew in Brazil, Africa, and Asia.

-Terry Lane

Stock Futures Hover Around Flat Premarket

3 hr 3 min ago

Dow Jones Industrial Average futures contracts were up just 0.05%. 

Futures contracts connected to the S&P 500 gained 0.04% premarket.

Nasdaq 100 futures were also up 0.04%.