5 Things to Know Before the Stock Market Opens

Nvidia’s (NVDA) shares are rising in premarket trading, partly reversing their three-day correction and buoying other AI-linked plays like Broadcom (AVGO) and Taiwan Semiconductor Manufacturing Company (TSM); Airbus shares are tumbling in Paris trading after the European plane maker slashed its delivery and earnings targets, while those of rival Boeing (BA) are lower on the New York Stock Exchange (NYSE) on a report that its planned purchase of Spirit AeroSystems (SPR) values its key supplier at $35 per share; the European Union (EU) is accusing Microsoft (MSFT) of breaching antitrust rules related to its bundling of its Teams collaboration tool with Office 365 and Microsoft 365; Novo Nordisk’s (NVO) Wegovy weight-loss treatment has been approved in China; and FedEx (FDX) is slated to report fourth-quarter results after the closing bell, hoping to end its recent trend of posting year-over-year revenue declines. Here’s what investors need to know today.

1. Nvidia Back Up After Entering Correction, Lifts Other AI Chip Stocks

Nvidia’s (NVDA) shares are rising 2.3% in premarket trading after the artificial intelligence (AI) chipmaker’s three-day correction weighed on other tech shares. Nvidia, which briefly became the world’s most valuable company last Tuesday, hit a high of $140.76 Thursday but closed Monday at $118.11. The chip designer has still rallied nearly 140% this year, however. Some of the stocks that were hit Monday are also pointing higher, with Broadcom (AVGO) up 1.2% after falling nearly 4% the prior session, while Taiwan Semiconductor Manufacturing Company (TSM) is 1.4% higher.

2. Airbus Tumbles on Outlook Cut; Boeing Values Spirit AeroSystems at $35/Share Airbus shares are tumbling about 12% in Paris trading after the European plane maker slashed its delivery and earnings targets, while those of rival Boeing (BA) are slipping 1.3% on the New York Stock Exchange (NYSE) on a report that its planned purchase of Spirit AeroSystems (SPR) values its key supplier at $35 per share. Airbus said it would deliver around 770 commercial aircraft in 2024, down from an original goal of 800, citing “persistent specific supply chain issues,” and lowered its adjusted earnings before interest and taxes (EBIT) target for the year to 5.5 billion euros ($5.9 billion) from its April 25 estimate of between EUR6.5 billion and EUR7 billion. Bloomberg reported on Boeing’s largely stock-based offer for Spirit AeroSystems, a change from its prior all-cash offer. The U.S. plane maker has been reviewing practices of key suppliers like Spirit, which it spun off in 2005, after the highly scrutinized January incident in which a door plug detached from a Boeing-made plane in midair, which sparked a slew of regulatory reviews.

3. Microsoft Faces Potential EU Fine for Bundling Teams With Office The European Union (EU) on Tuesday accused Microsoft of breaching antitrust rules, leaving the tech giant exposed to a potential fine of up to 10% of its global annual revenue. “The European Commission has informed Microsoft of its preliminary view that Microsoft has breached EU antitrust rules by tying its communication and collaboration product Teams to its popular productivity applications included in its suites for businesses Office 365 and Microsoft 365,” it said. Microsoft moved to sell Teams separately in Europe last year to address antitrust concerns, and made the change worldwide recently. The announcement comes a day after the EU charged Apple (AAPL) with violating its new Digital Markets Act (DMA). Microsoft shares are little changed in premarket trading.

4. Novo Nordisk Announces Approval of Wegovy Weight-Loss Drug in China

5. Novo Nordisk (NVO) confirmed on Tuesday that its Wegovy weight-loss treatment has received approval in China, marking a significant milestone for the drug’s availability in the world’s second-largest economy. According to a Chinese-language press release translated by Google Translate, the drug will initially target “overweight and obese patients (with an initial BMI greater than or equal to 30kg/m2, or between 27kg/m2 and 30kg/m2 with at least one weight-related comorbidity).” The company did not specify a launch date for the drug in China. Novo Nordisk’s American depositary receipts (ADRs) are up approximately 2% in premarket trading following the announcement.

   5. FedEx Set to Release Q4 Results, Aims to Reverse Revenue Decline Trend

   FedEx (FDX) is scheduled to announce its fourth-quarter results after market close, seeking to halt its recent trend of year-over-year revenue declines. The company has faced challenges as the surge in shipping demand during pandemic lockdowns subsided. In the previous year’s fourth quarter, FedEx reported revenue of $21.93 billion, a 10% decrease from the prior year, and has recorded revenue declines compared to the previous year in every subsequent quarter. FedEx shares are showing little change about 90 minutes before the opening bell.