Stock Market Futures On The Decline Amidst Economic Uncertainties
Stock market futures are slipping in early morning trading on Tuesday. In general, this could be on account of two key factors weighing in on stocks now. On one hand, a House-passed bill intended to prevent a partial government shutdown was denied by Senate Republicans yesterday. On the other hand, Federal Reserve chairman Jerome Powell is set to speak in Congress about the recent rise in inflation. Both of which could lead to losses among stocks in the case of less-than-ideal outcomes.
Overall, U.S. Bank Wealth Management chief investment officer, Eric Freedman, believes that “there’s the opportunity for volatility to pick up a little bit”. According to Freedman, both the aforementioned factors along with underperforming earnings and cost pressures could explain this. Whether you are looking to diversify or trim some of your holdings, there is no shortage of exciting news to note alongside this. As of 6:47 a.m. ET, the Dow, S&P 500, and Nasdaq futures are trading lower by 0.38%, 0.81%, and 1.52% respectively.
Ford Supercharging Its EV Operations
Ford (NYSE: F) is making major waves in the electric vehicle (EV) industry now. As of earlier today, Ford is working on an $11.4 billion plan to bolster its EV portfolio. Namely, the automotive giant will be channeling these funds towards building two “mega-sites”. One will be situated in Tennessee while the other will be in Kentucky. This is possible through a partnership with SK Innovation, a developer and producer of petroleum products. In terms of the breakdown, Ford’s share of the gargantuan fund will be $7 billion, its largest manufacturing investment to date.
If anything, all this would be indicative of the momentum in the global EV market now. With the growing push towards alternative energy vehicles, Ford’s play is a bold yet understandable one. According to Ford, both of the manufacturing plants will primarily focus on building electric trucks and batteries.
Seeing as Ford’s trucks are among the most popular automobiles in the U.S., the company knows its market. In brief, CEO Jim Farley had this to say, “It’s about creating good jobs that support American families, an ultra-efficient, carbon-neutral manufacturing system, and a growing business that delivers value for communities, dealers, and shareholders.” As such, F stock could be worth keeping an eye on in the stock market today.
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AMD CEO Lisa Su Sees Light At The End Of The Chip Shortage Tunnel
In other news, Advanced Micro Devices (NASDAQ: AMD) CEO Lisa Su provided some insight into the ongoing semiconductor chip shortages. According to Su, the current shortage could wane by the second half of 2022 after a “likely tight” first half. Speaking at the Code Conference in California yesterday, she highlighted numerous factors that could drive this progress. For the most part, Su believes that chipmakers across the board are on the heels of rising chip demands now. This would be mainly through bolstering existing manufacturing capacities and systems by building additional plants. The likes of which will likely start production in the coming months, according to Su.
By and large, companies like AMD have and continue to make massive expansions to their portfolios this year. This would be the case given the unprecedented surge in demand for semiconductors globally. AMD’s ongoing $35 billion acquisition of fellow chipmaker Xilinx would be a notable play now.
Elsewhere, we could also take a look at the Taiwan Semiconductor Manufacturing Company (NYSE: TSM). Earlier this year, the company revealed plans to invest up to $100 billion towards growing its manufacturing capabilities through 2024. Subsequently, TSM is now planning to build an advanced plant in south Taiwan, its first location in the region. Considering all of this, investors could be eyeing the top semiconductor stocks in terms of long-term growth potential.
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Facebook Looking To Build A $50 Million ‘Metaverse’
Elsewhere in the tech world, Facebook (NASDAQ: FB) is taking a shot at the ‘metaverse’. Now, for starters, what is the metaverse might you ask? Well, in essence, it is a virtual space where individuals can move and communicate in real-time via augmented reality (AR) and virtual reality (VR) tech. Among the current wave of metaverse stocks would be FB stock given Facebook’s investments in AR and VR tech thus far. Evidently, the company’s portfolio now consists of industry-leading hardware such as the Oculus VR headsets. Not to mention, Facebook is also actively developing AR smart glasses with industry veteran Ray-Ban. This would make for an ideal piece of metaverse tech in theory.
Now, regarding this new frontier in tech, Facebook is looking to invest $50 million towards building the metaverse responsibly. By extension, this would be the company’s efforts to provide security to potential users in the future. This includes key areas like data privacy and safety among other inclusivity initiatives.
According to Facebook, it is now teaming up with research universities from the U.S., South Korea, and Hong Kong to accomplish this. Arguably, this would be a logical next step for the largest social media network operator in the world now as more focus goes towards interacting in the digital space. Considering the potential of the metaverse, could FB stock have more room to grow in the long term?
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Notable Earnings On Watch Today
Aside from all this news, there are also earnings to keep track of today as well. For those interested in pre-market names, we are looking at a good mix. In terms of software, we have Endava (NYSE: DAVA), FactSet (NYSE: FDS), Synnex (NYSE: SNX), and IHS Markit (NYSE: INFO). Additionally, there are also consumer-focused businesses like United Natural Foods (NYSE: UNFI) and Thor Industries (NYSE: THO).
On the flip side, Micron (NASDAQ: MU), Vintage Wine Estates (NASDAQ: VWE), and Cal-Maine Foods (NASDAQ: CALM) is reporting after the closing bell. Whether you are keeping up with the news or following earnings reports, one fact remains. That is, things are as busy as ever in the stock market today.
