Nvidia Soars to Record; Rising Treasury Yields Weigh on Dow
US Cellular Surges as T-Mobile Agrees To Pay $4.4B for Most of Carrier’s Operations
4 minutes ago
Telecommunications giant T-Mobile (TMUS) announced Tuesday that it would acquire “substantially all” of U.S. Cellular’s (USM) wireless operations in a deal valued at $4.4 billion.
U.S. Cellular shares traded more than 8% higher late in the session on Tuesday, while T-Mobile shares were little changed.
T-Mobile agreed to purchase U.S Cellular’s customers and physical retail stores, along with “certain specified spectrum assets,” while the companies would also enter into an agreement for T-Mobile to lease some 2,100 cell towers.
T-Mobile said the companies expect the deal to close by the middle of next year, depending on regulatory approval. Since the deal likely would not be completed in the current fiscal year, T-Mobile said it is not shifting its 2024 guidance at this time.
Why Nvidia’s Stock Continues To Rise—What You Need To Know About Elon Musk’s xAI
54 minutes ago
Nvidia (NVDA) shares reached a record high during intraday trading Tuesday amid reports that Elon Musk told xAI investors that the artificial intelligence (AI) company would build a supercomputer.
The chipmaker’s shares were up 6.8% at $1,137.12 Tuesday afternoon, after trading as high as $1,149.39 earlier in the session. The stock has more than doubled year-to-date.
Musk reportedly said that xAI would need 100,000 semiconductors to train and run the supercomputer, which he said will be running by the fall of 2025, according to The Information.
xAI recently announced its Series B funding round raised $6 billion, which the company said will “be used to take xAI’s first products to market, build advanced infrastructure, and accelerate the research and development of future technologies.”
Other companies within Nvidia’s AI ecosystem and other chipmakers also were trading higher Tuesday, including Advanced Micro Devices (AMD), ON Semiconductor (ON), and Micron Technology (MU).
Norwegian Cruise Line Stock Gets Boost From Mizuho Upgrade
1 hr 44 min ago
Shares of Norwegian Cruise Line Holdings (NCLH) advanced in intraday trading Tuesday as Mizuho Securities upgraded the stock and raised its price target on the company’s cost-cutting and a positive industry outlook.
Mizuho lifted its rating to “buy” from “neutral,” and the price target to $24 from $21.
Mizuho executive director Ben Chaiken explained that Norwegian is “streamlining” its business, including reducing expenses, which should improve near- and medium-term results. In addition, he noted that the cruise line is benefiting from “a very favorable industry backdrop” of limited supply and high demand.
Norwegian Cruise Line Holdings shares were up 3.5% Tuesday afternoon but still are down 17% in 2024.
Sports-Betting Stocks Drop as Illinois Senate Passes Budget Raising Tax Scale
2 hr 49 min ago
Sports-betting stocks like DraftKings (DKNG) and FanDuel parent Flutter Entertainment (FLUT) slid Tuesday after the Illinois Senate passed a state budget that includes a new progressive tax rate on such firms.
Under the new proposal, sports-betting companies would be hit with a progressive tax rate from 20% to 40%, depending on the dollar amount of bets they handle, which would affect the largest players like DraftKings and FanDuel the most. Sports-betting companies have paid a 15% tax since it became legal in 2021.
If the amended bill passes the Illinois House this week and is signed by Gov. J.B. Pritzker, the 40% top end of the scale would give Illinois one of the highest sports-betting taxes in the country, behind just New York, which taxes betting companies at 51%.
DraftKings shares were down about 12% early Tuesday afternoon and were trading at their lowest level since mid-January. FanDuel parent Flutter’s stock fell nearly 7% but was still up about 6% this year.
GameStop Stock Surges After Company Completes $933 Million Share Sale
3 hr 50 min ago
GameStop (GME) shares jumped after the video game retailer said it successfully sold 45 million shares worth roughly $933.4 million, helping it to capitalize on a recent rally in its shares.
The company, which saw its stock soar around 135% over a two-day period earlier this month, initially announced the share offering on May 17, several days after the peak of the social media-fueled rally, saying at the time that it planned to use the proceeds for general corporate purposes, such as investments and acquisitions.
Although the company did not disclose the sale price of the shares, it said it executed the offering at-the-market, meaning it sold the shares at the prevailing market price, allowing the retailer to cash in on a portion of the meme-driven gains.
Since temporarily spiking more than sixfold from their late April low, GameStop shares have given up about 70% of those gains in recent weeks, with the price falling towards a multi-month downtrend line. Interestingly, Tuesday’s price rally coincides with the 50-day moving average (MA) crossing above the 200-day MA on Friday to flash a golden cross, a pattern often interpreted as marking the start of a new move higher.
In upcoming trading sessions, investors should pay close attention to the $27 level, an area on the chart where traders may book profits near the May 13 gap, which sits in close proximity to a key horizontal line connecting a series of price action over the past 19 months.
GameStop shares were up 20% Tuesday morning, bringing their year-to-date gain to 29%.
Stocks Making the Biggest Moves Premarket
5 hr 49 min ago
Gains:
- GameStop (GME): Shares of the video game retailer jumped 25% after it said it had completed a secondary offering of 45 million shares worth approximately $933 million, capitalizing on the recent meme stock revival that sent its shares soaring.
- Dell Technologies (DELL): Shares of the computing hardware company rose more than 5% ahead of its quarterly earnings report on Thursday when investors could get updates on the effect the AI boom is having on its server business.
- Texas Instruments (TXN): Shares gained 3% amid reports activist investor Elliott Management had taken a $2.5 billion stake in the semiconductor company.
- Apple (AAPL): Shares rose more than 1% amid reports that Chinese iPhone shipments surged 52% in April, rebounding after a difficult start to the year.
Losses:
- DraftKings (DKNG): Shares of the online sports betting company sank more than 6% after the Illinois Senate approved a bill that would increase taxes on sports betting operators.
- Tesla (TSLA): The electric vehicle maker’s shares slipped 1% after proxy advisory firm Glass Lewis over the weekend urged shareholders to reject a proposal to reinstate CEO Elon Musk’s $56 billion pay package.
Dow Futures Slip, Nasdaq Gains
6 hr 31 min ago
Dow futures were down 0.1% in premarket trading Tuesday.
S&P futures were up 0.2%.
Nasdaq futures were up 0.3%.
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