S&P 500 futures are up 26 points, Nasdaq 100 futures have increased by 165 points, and Dow Jones Industrial Average futures have risen by 143 points. This positive trend is supported by a strong earnings response from Apple (AAPL, Financial), which is up 4% before the market open.
Treasury yields remain steady as investors await the December Personal Income and Spending report, which includes the Federal Reserve's preferred inflation measure, the PCE Price Indexes. The 10-year yield is at 4.52%, and the 2-year yield is at 4.21%.
The Core PCE Price Index, a key indicator of inflation preferred by the Federal Reserve, rose by 0.2% month-over-month in December, aligning with consensus estimates. Year-over-year, the core PCE saw a 2.8% increase, remaining above the Fed's 2% target. Personal income and spending also rose, with spending exceeding expectations during the holiday season. This data influenced the Federal Open Market Committee's recent decision to pause rate cuts.
AbbVie (ABBV, Financial) saw premarket gains after announcing a 2025 earnings outlook that met expectations, despite reporting a $22 million loss in Q4 due to a $3.5 billion impairment charge from its Cerevel Therapeutics acquisition. The company's revenue of $15.1 billion exceeded forecasts, marking a 6% year-over-year growth. However, adjusted earnings per share dropped by 23% due to research and development expenses and milestone charges.
Vertex Pharmaceuticals (VRTX, Financial) has secured a reimbursement agreement with England's NHS for its gene-edited therapy Casgevy, developed with CRISPR Therapeutics (CRSP, Financial), to treat sickle cell disease. This follows a similar agreement for beta-thalassemia treatment, marking a significant milestone as the first regulatory approval of a CRISPR-based therapy in the UK.
Apple (AAPL, Financial) shares rose 4% premarket after beating fiscal Q1 expectations. Despite the positive results, analysts expressed concerns over declining iPhone sales and persistent challenges in the Chinese market. The company reported stronger-than-expected revenue from Mac and iPad sales, with a projected revenue growth in the low to mid-single digits for the second quarter.
MicroStrategy (MSTR, Financial) announced the pricing of its 8.00% Series A Perpetual Strike Preferred shares at $80 each, with plans to use the estimated $563.4 million net proceeds for general corporate purposes. The company retains the right to redeem the shares under specific conditions.
Samsung Electronics (SSNLF, Financial) received approval to supply its HBM chips to Nvidia (NVDA, Financial) for use in AI processors tailored for the Chinese market. The approval involves Samsung's 8-layer HBM3E chips, which are less advanced than the 12-layer variant. This move positions Samsung alongside SK hynix and Micron Technology (MU, Financial) in the competitive HBM market.
Microsoft (MSFT, Financial) and Nvidia-backed CoreWeave are partnering with New Jersey and Princeton University to establish an AI hub, investing over $72 million. This initiative aims to bolster AI innovation and development on the East Coast, focusing on research, education, and workforce development.
Exxon Mobil (XOM, Financial) reported Q4 earnings that surpassed Wall Street estimates, driven by projects in the Permian Basin and Guyana. Despite a slight decrease in total revenues, the company maintained strong production levels and anticipates a significant portion of future production from these high-margin areas.
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