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

1040 - Fed’s Williams speaks
1300 - Fed’s Bostic speaks

Top Stories

CrowdStrike Holdings Inc (CRWD)

-12.28%

Gapping down after major U.S. airlines, media companies, banks, and telecoms firms worldwide reported system outages, with Australian authorities linking some disruptions to an issue at CrowdStrike. The company acknowledged reports of crashes on Microsoft's Windows operating system related to its Falcon sensor, with CEO George Kurtz noting that the causes of the issue have been discovered and a solution is in the works. Cybersecurity stocks (PANW, FTNT, S) are trading higher as a group following the incident.

Microsoft and Amazon.com

-1.36%

Trading lower premarket as a pair after a widespread service disruption with the Micorsoft’s cloud caused significant operational issues for several airlines, including Frontier, Allegiant, and Sun Country, resulting in flight cancellations and delays. The outage, affecting multiple Azure services in the Central U.S. region, also impacted 911 call centers in Alaska, with Microsoft acknowledging issues related to an update from CrowdStrike and working to restore services. Amazon’s AWS released a statement saying that they were looking into connectivity issues which also appeared to be related to the CrowdStrike update.

MSFT, AMZN

Netflix Inc (NFLX)

+0.31%

The streaming giant reported second-quarter revenue of $9.56 billion, up 16.8% year-over-year, and earnings per share of $4.88, beating Street consensus estimates of $9.528 billion and $4.75, respectively. The company added 8.05 million paid members, well above the analyst estimate of 5.03 million, and saw a 34% increase in ad-supported memberships. Netflix guided Q3 revenue at $9.727 billion, below the estimated $9.82 billion, and foresees a year-over-year drop in net paid additions for Q3, though its EPS forecast of $5.10 exceeded estimates of $4.74.

Arm Holdings PLC (ARM)

+2.96%

Trading higher premarket following an upgrade from Morgan Stanley. The analyst raised its rating for Arm from Equal-Weight to Overweight and increased its price target from $107 to $190, emphasizing the company’s role in the edge AI space and the potential for growth in its key automotive and smartphone markets.

American Express Co (AXP)

-1.79%

Trading lower premarket after its earnings report, with quarterly sales of $16.33 billion missing the estimated $16.58 billion. Earnings per share for the quarter came in at $3.49, exceeding estimates of $3.26. The company also raised its EPS guidance for fiscal 2024 from $12.65-$13.15 to $13.30-$13.80, compared to analyst expectations of $12.97.

Broadcom Inc (AVGO)

+1.42%

On Thursday afternoon, The Information reported that OpenAI is in discussions with the company to co-develop a new AI chip, aiming to reduce its dependency on Nvidia and strengthen its supply chain. These efforts, led by Sam Altman, reportedly involve collaborating with chipmakers, partners like Microsoft, and global investors to secure the necessary infrastructure and resources for running advanced AI models.

Hawaiian Electric Industries Inc (HE)

+37.24%

Gapping up after Bloomberg News reported that the company and other defendants have tentatively agreed to a settlement exceeding $4 billion to resolve lawsuits related to the Maui wildfires. The settlement aims to compensate thousands of homeowners and businesses, with additional defendants including a unit of Charter Communications and state and local governments. Roughly 22.7% of the company’s stock is sold short.

Plug Power Inc (PLUG)

-10.63%

Trading sharply lower with volume after announcing a proposed $200 million public offering on Thursday after the bell. On Friday morning, the company priced its offering at $2.54 per share, with a total of 78.74 million shares on offer. The stock has a short float of 27.6%.

Serve Robotics (SERV)

+74.14%

Gapping up after Nvidia disclosed an investment in the company, buying 62,500 shares at $4 each in July 2023 and converting a promissory note into approximately 1.1 million shares in April. Nvidia now owns around 3.7 million Serve Robotics shares, a 10% stake; Uber Technologies holds a 14% stake in Serve and is a strategic partner.