5 Key Market Updates to Watch Before Trading Today - US Stock Market News

As trading begins, U.S. stock futures remain relatively unchanged following a decline in major indexes earlier in the week. Concerns in the tech sector were a primary factor behind this movement, but investors are looking ahead to fresh earnings reports and the release of important inflation data later in the week. Here’s what investors should focus on today:

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1. TSMC's November Sales Show Continued AI Demand

Taiwan Semiconductor Manufacturing Co. (TSM), a leading supplier to major companies like Apple (AAPL) and Nvidia (NVDA), reported a notable 34% increase in November sales compared to last year. This surge indicates strong ongoing demand for chips tailored for artificial intelligence applications. November's sales reached 276.06 billion New Taiwan dollars ($8.48 billion), though it represented a 12% decline from October. Overall, TSMC’s revenue for the year from January to November rose by 32% year-over-year, demonstrating resilience in the chip market. Despite a slight dip of about 1% in premarket trading, TSMC's shares have almost doubled in value over the past year, highlighting its strong performance.

2. Google’s Teen Ad Program Under European Scrutiny

Alphabet’s (GOOGL) Google is currently facing an investigation from European regulators. The probe centers on a past advertising agreement between Google and Meta Platforms (META) that targeted advertisements at teens on Instagram, bypassing rules that restrict personalized ads for users under 18. This deal has since ended, but both Alphabet and Meta have shown slight premarket gains, reflecting investor optimism amid the regulatory challenges.

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3. Oracle's Earnings Miss Expectations, Shares Drop

Oracle (ORCL) is seeing a 6% drop in its stock price during premarket trading after reporting quarterly earnings that failed to meet analysts' forecasts. The tech firm’s revenue came in at $14.06 billion, a 9% increase from last year but below the anticipated figures. Although net income rose to $3.15 billion, or $1.10 per share, up from $2.5 billion, or 89 cents per share a year earlier, adjusted earnings per share (EPS) of $1.47 fell short of predictions. The company’s performance has raised questions amid broader investor concerns.

4. GameStop's Earnings Report Set to Release Today

GameStop (GME) is preparing to share its third-quarter earnings report after the market closes today, with shares slightly declining in premarket trading ahead of the announcement. The stock recently surged due to a cryptic post from Keith "Roaring Kitty" Gill, a prominent figure in the meme-stock movement, which drew attention and prompted some investors to buy in. However, GameStop is not widely followed on Wall Street, with the only analyst tracked by Visible Alpha rating it as "underperform" and setting a price target of $10, which is significantly lower than its closing price of $27.93 on Monday.

5. Futures Remain Flat After Monday's Market Retreat

U.S. stock futures are showing little movement as the market looks to recover from Monday’s losses, which were partly driven by weaker performance in the tech sector. The Nasdaq and S&P 500 futures are slightly higher, while Dow Jones Industrial Average futures are modestly lower. Investors are preparing for more earnings reports throughout the day and keeping an eye on upcoming inflation data, which could impact trading sentiment. Bitcoin is trading just below $97,000, gold prices have risen by 0.6%, oil is down by 0.5%, and yields on the 10-year Treasury note have edged up to above 4.2%.