^{_{Welcome to the TraderTV Live Morning Research Note. Here's what's making major moves in the market today.}}

0830 - CPI y/y for July: Expected 3.0%; Prior 3.0%
0830 - CPI m/m for July: Expected 0.2%; Prior -0.1%
0830 - Core CPI y/y for July: Expected 3.2%; Prior 3.3%
0830 - Core CPI m/m for July: Expected 0.2%; Prior 0.1%

Alphabet Inc (GOOGL)

-1.13%

Trading lower premarket following a Bloomberg report that the U.S. Department of Justice (DOJ) is considering breaking up Google, with the divestment of the Android operating system being a key focus. Other potential actions include data-sharing requirements, divestment of the Chrome browser, and the sale of AdWords, as the DOJ explores ways to curb Google's dominance.

Starbucks and Chipotle Mexican Grill

+0.31%

On watch as a pair as market participants continue to digest Tuesday’s announcement that Brian Niccol, CEO and chairman of Chipotle, will take over as CEO and chairman of Starbucks as of September 9, 2024. Shares of Starbucks gained more than 20% by the end of Tuesday’s session. Analysts from Stifel, Deutsche Bank, and Evercore ISI all upgraded Starbucks on Wednesday morning, while Chipotle was upgraded to Outperform by Wedbush and assigned a $58 price target; Starbucks is experiencing a slight pullback premarket, and Chipotle is slightly positive after selling off on Tuesday.

SBUX, CMG

Semiconductors

+0.68%

Continuing to trade higher as a group following Tuesday’s tech-driven rally. Nvidia is especially strong, with key supplier Foxconn announcing plans to begin shipping a small volume of Nvidia's GB200 server systems in the final quarter of 2024. Foxconn emphasized that its AI server business, driven by demand for Nvidia's H100 and H200 chipsets, will be its key growth driver for 2024 during its Q2 earnings report. Separately, regulatory filings revealed that Intel sold its 1.18 million-share stake in Arm Holdings over the course of fiscal Q2 2024 for approximately $146.7 million.

NVDA, INTC, ARM, MU, MRVL, AVGO, AMD

Tesla Inc (TSLA)

+0.19%

On watch after the National Highway Traffic Safety Administration (NHTSA) closed its investigation into 74,918 Tesla vehicles, including 2015-2017 Model S sedans and 2016-2017 Model X SUVs, over concerns of front suspension failure. Despite 43 complaints prompting the inquiry, the investigation found no instances of part failure leading to loss of vehicle control, though NHTSA cautioned that this does not rule out the presence of a safety-related defect and may still take action if necessary.

Kellanova (K)

+8.07%

Gapping up after Mars the family-owned candy giant known for brands like M&M's and Snickers, announced a $36 billion acquisition of Kellanova in the largest deal in the packaged food industry. Mars will pay $83.50 per share in an all-cash deal, representing a 33% premium to Kellanova's stock price before Reuters first reported the potential deal on August 2. The deal is set to conclude within the first half of 2025.

Crypto Stocks

+1.01%

Trading higher as a group amid continued strength in Bitcoin, with the cryptocurrency trading above the $61,000 level as of Wednesday morning. Ethereum also showed early strength on Wednesday, trading around the the $2,750 level.

MARA, BITO, IBIT, COIN, MSTR, RIOT, ETHE

UBS Group AG (UBS)

+3.01%

The company’s US-listed shares are trading higher premarket following its earnings report, with earnings of $0.34 per share and sales of $11.904 billion exceeding estimates of $0.12 and $11.295 billion, respectively. Despite a drop in net profit from $27.3 billion to $1.14 billion due to notable gains in the previous fiscal year, UBS achieved significant cost savings and remains on track to meet its financial targets, with further integration of Credit Suisse expected to yield substantial benefits by 2026.

Peloton Interactive Inc (PTON)

+5.63%

Continuing to trade higher after announcing a multi-year, multi-country partnership with Google Fitbit on Tuesday afternoon. This partnership will allow Fitbit Premium users to access Peloton classes across more than 10 modalities starting in early September, with a select group of Peloton classes set to be available to Fitbit users without a premium subscription. The stock has an 18.7% short float, and the company is scheduled to report earnings before the bell on Thursday, August 22.

Nu Holdings Ltd (NU)

+2.28%

Trading higher premarket following its Q2 earnings report. The company reported GAAP earnings of $0.10 per share, above analyst estimates of $0.09, though sales of $2.8 billion fell below the estimated $2.92 billion despite growing by 65% on a year-over-year basis. The bank noted a 64% year-over-year increase in total deposits and a 77% increase in net interest income, with total customers reaching 104.5 million following the addition of 5.2 million customers during the quarter.

Digital Ally Inc (DGLY)

+77.67%

Gapping up after receiving a U.S. patent for a system that tracks and analyzes drivers within a fleet of vehicles. The patented system features a monitoring engine, a mapping engine for incident display, and a driver analysis engine that generates profiles based on incident data across multiple drivers. The company has a market capitalization of $2.98 million and its stock has a float of 3.21 million shares, approximately 7.2% of which are sold short.