Dow Jones futures were little changed late Wednesday, along with S&P 500 futures and Nasdaq futures. Recent tech IPO Pivotal Software (PVTL) crashed in late trade despite reporting better-than-expected second-quarter results. Meanwhile, AMD (AMD), Tilray (TLRY) and brand-new IPO Nio (NIO) extended regular-session gains. Meanwhile, Tesla CEO Elon Musk tweeted that customers may see later deliveries due to higher shipment volumes.
Dow Jones Futures Today
Dow Jones futures were just above fair value. S&P 500 futures and Nasdaq 100 futures were essentially flat. Keep in mind that Dow Jones futures and other overnight action may not translate into actual results in the next regular session.
In Wednesday’s stock market trading, the Dow Jones and S&P 500 index rose slightly while the Nasdaq composite dipped 0.2%. All closed well off lows on a report that the U.S. has called for new trade talks with China before any new Trump tariffs kick in. Chip stocks were notable losers Wednesday, with the big exception of AMD stock.
Pivotal Software reported an adjusted loss of 6 cents a share, with revenue rising 30% to $163 million, beating views. The company gave Q3 guidance that was slightly above analyst targets. However, Pivotal added just 15 subscription customers vs. 20 in Q1. Subscription revenue rose 51% vs. a year earlier, decelerating from Q1’s 69% pace.
Pivotal stock crashed 25% late. Shares had closed up 2.9% to 28.78. Pivotal stock had been closing in on a 29.25 cup-with-handle base.
That underscores a key point: It’s highly risk to buy a stock just before quarterly results unless via an earnings options strategy. That’s especially true of recent IPO stocks, which can be especially volatile after earnings.
Shrugging off broader semiconductor concerns, AMD stock surged Wednesday, rising 7% to 32.21, a fresh 12-year high. After the close, AMD stock kept soaring, rising 1.2%.
AMD is grabbing market share in PCs and servers from Intel (INTC), which has delayed its next-generation chips.
Meanwhile, Micron Technology (MU), which led Wednesday’s chip sell-off with a 4.3% slide, retreated 1.3% late.
The hottest marijuana stock is still smoking, puffing 2.5% higher to 107.44 in extended trading after briefly topping 109. That’s after Tilray stock rallied 9.6% to 104.95 in Wednesday’s session. That’s despite short-seller Citron saying marijuana stocks are “more ridiculous than Bitcoin,” with Tilray stock the worst of all. Tilray’s market cap was $9.8 billion at Wednesday’s close. Not bad for a money-losing firm with $9.7 million in Q2 sales.
Nio IPO Stock
Nio, a Chinese rival to Tesla, priced its IPO near the low end of its range. Nio IPO stock opened lower, but closed up 5.4% to 6.60. Shares rose about 2% late in active trade. Nio launched a seven-seat luxury electric SUV in the past year, with a five-seat model on the way.
Tesla CEO Elon Musk tweeted that customers face “longer response times” due to a big bump in the number of vehicles needed to be shipped.
Due to a large increase in vehicle delivery volume in North America, Tesla customers may experience longer response times. Resolving this is our top priority.
— Elon Musk (@elonmusk) September 12, 2018
That suggests that Tesla production is so strong that the company can’t keep up. It also could be a justification if Tesla reports weak Q3 delivery figures. In any case, it could mean that quarterly delivery figures will be less clear-cut.
Stepping back, given that Tesla Model 3 production is ramping up nearly a year behind schedule, shouldn’t Elon Musk be ready for the increased delivery pace?
Tesla stock dipped 0.3% late. Tesla stock closed up 4%, trying to rebound after a monthlong crash from Aug. 7 to Sept. 7.
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