The futures showed a mixed performance ahead of Friday’s open, following a sharp rally in the previous session. Investors continue to gauge the health of the banking sector and the prospects for Federal Reserve policy, with the central bank’s next interest rate decision set to come next week. Here are some stocks to watch on Friday:
- FedEx (NYSE:FDX) surged in premarket trading after the package delivery giant reported strong Q3 earnings and raised its forecast. For the full year, the company predicted a profit between $14.60 and $15.20 per share, compared to its previous projection of between $13.00 and $14.00 per share. Bolstered by the earnings news, shares surged more than 11% before the opening bell.
- Nvidia (NVDA) rose more than 2% in premarket action after receiving an upgrade from Morgan Stanley. The firm raised its rating on the graphics chip maker to Overweight from Equal-Weight, arguing that issues in the gaming and data center markets have largely played out. The company will also receive a boost from the rise of generative AI, Morgan Stanley said.
- Microsoft (MSFT) has responded to European regulators concerned about the software maker’s planned $69B acquisition of videogame giant Activision (ATVI). The EU regulator revealed that MSFT has offered remedies, although the details weren’t provided. The EU deadline to decide on the transaction has also been extended to May 22.
- Bank of America (BAC) revealed that both credit card delinquencies and net charge-offs climbed in February. However, the figures remained below pre-pandemic levels. The delinquency rate for the firm’s Master Credit Card Trust II edged up to 1.14% in February compared to 1.09% in January. The figure stood at 1.58% in February of 2020.
Taking a look at the broader market, Seeking Alpha contributor CashFlow Hunter identifies “economic data showing [a] slowing real economy,” pointing to housing and regional business indicators.
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