5 Things to Know Before the Stock Market Opens

Netflix’s (NFLX) subscription numbers and WWE partnership will be in focus when the streaming giant posts first-quarter results after the closing bell; Micron Technology (MU) shares are gaining in premarket trading on a report it will get $6.1 billion in CHIPS Act funding; Taiwan Semiconductor Manufacturing Company (TSM) issued a rosy outlook for its much-in-demand artificial intelligence (AI) chips and posted higher-than-forecast first-quarter results; Equifax (EFX) is slumping on current-quarter guidance that missed estimates amid falling mortgage inquiries; and once high-flying DNA-testing firm 23andMe (ME) is mulling plans to go private. U.S. stock futures are gaining after several days of declines. Here’s what investors need to know today.

1. Streaming Giant Netflix’s Subscriber Growth in Focus for Q1 Results

Netflix (NFLX) is due to report first-quarter results after the closing bell today, with analysts expecting the streaming giant to post revenue gains and investors focused on subscriber growth and any updates on its partnership with WWE. The company’s revenue is expected to come in at $9.26 billion, according to consensus estimates collected by Visible Alpha, a jump from the $8.16 billion in revenue it recorded for the first quarter of 2023. Netflix shares, which have gained 26% this year, were little changed in premarket trading.

2. Micron Gains as Chip-Maker Reportedly Set for $6.1B CHIPS Act Grant

Shares of Micron Technology (MU) rose 2% in premarket trading on a report that the largest U.S. maker of computer-memory chips is poised to get $6.1 billion in grants from the Commerce Department to help pay for domestic factory projects, in the latest Biden initiative to bring chip-making back to American soil. Citing people familiar with the matter, Bloomberg said the award is slated to be revealed next week, with the package from the Biden administration, like those recently doled out for Intel (INTC) and Taiwan Semiconductor Manufacturing Company (TSM), including loans. Intel was awarded $8.5 billion earlier this year and TSMC got $6.6 billion in direct federal funding under the CHIPS and Science Act for its Arizona facility. Micron has pledged to build as many as four factories in New York state, plus one in Idaho.

3. Nvidia Supplier TSMC Posts Rosy Sales Outlook Amid AI Chip Demand 

Taiwan Semiconductor Manufacturing Company (TSM) American depositary receipts (ADRs) reported a rosy current-quarter sales outlook on booming demand for its AI chips, as well as higher-than-forecast first-quarter revenue and profit. The earnings beat by the provider of chips to Apple (AAPL) and Nvidia (NVDA) could reassure investors following TSMC supplier ASML’s (ASML) disappointing sales figures Wednesday. TSMC said it expects revenue of $19.6 billion to $20.4 billion in the June quarter, topping estimates for about $19.1 billion. First-quarter revenue rose almost 13%  over the year to $18.9 billion, while net profit increased almost 9% to $7.2 billion. TSMC shares were down 1% in premarket trading.

4. Equifax Slumps as Falling Mortgage Inquiries Drag Outlook

Shares in Equifax (EFX) fell more than 9% in premarket trading after the credit-ratings company issued current-quarter guidance that came in below Wall Street’s expectation amid falling mortgage inquiries. The company, which assesses borrowers’ credit quality for lenders, said it expects current-quarter revenue of between $1.41 billion and $1.43 billion, missing analysts’ expectations of $1.44 billion. In recent months, the housing market has shown signs of cooling as higher-for-longer interest rates signaled by the Federal Reserve and high property prices have pushed more buyers and sellers to the sidelines.

5. CEO Wojcicki Plans to Take DNA-Testing Firm 23andMe Private

Chief Executive Officer (CEO) Anne Wojcicki is seeking to take her DNA-testing company 23andMe (ME) private less than three years after it went public, the California-based consumer genetics and research company said in a filing. Wojcicki informed a special committee of the board on April 13 that she is seeking to take 23andMe private and has “indicated that she was working with advisors and intended to begin speaking to potential partners and financing sources,” the filing said. Wojcicki holds voting power 49.9% in the company she co-founded in 2006, so a third-party acquisition is nearly impossible. Shares in the formerly high-flying company, which went public in June 2021 in a SPAC deal and was hit by a large data hack late last year, fell to 35.6 cents each Wednesday, an all-time low.