News of the day for June 18, 2024
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U.S. stock futures are little changed after the S&P 500 and Nasdaq closed at fresh record highs Monday, lifted by an artificial intelligence (AI)-driven rally in tech stocks; Lennar (LEN) shares are falling in premarket trading after the Miami-based company forecasted below-forecast deliveries of new homes; U.S. retail sales for May are due at 8:30 a.m. ET and expected to show a modest rebound in consumer spending; shares of furniture maker La-Z-Boy (LZB) are jumping as its results beats analysts’ estimates despite a sluggish housing market; and Boeing (BA) Chief Executive Officer (CEO) Dave Calhoun is set to face a grilling from lawmakers when he testifies before a Senate hearing. Here’s what investors need to know today.
1. Stock Futures Steady After S&P 500 and Nasdaq’s Fresh Record Closes
U.S. stock futures are little changed after the S&P 500 and Nasdaq closed at record highs Monday, continuing to be lifted by an AI-driven rally in tech stocks. Shares of chipmaker Broadcom (AVGO), which have been gaining since last week’s stock split announcement, Micron Technology (MU), and Super Micro Computer (SMCI) are extending gains in premarket trading following increases that drove markets Monday. The May retail sales numbers due Tuesday and a slew of Federal Reserve officials speaking who may give investors a clue as to the central bank’s rate-cut path may affect trading ahead of Wednesday’s Juneteenth holiday, when U.S. markets will be closed.
2. Lennar Drops as Subdued Homes Delivery Forecast Offsets Earnings Beat
Lennar (LEN) shares are dropping about 3% in premarket trading after the homebuilder’s delivery forecast outweighed quarterly results that came in ahead of Wall Street expectations. The Miami-based company, which constructs residential homes nationwide, forecasts fiscal third-quarter home deliveries of between 20,500 and 21,000, with the 20,750 midpoint of that projection below analysts’ consensus view of 20,917 units. This closely watched metric indicates demand for new homes remains subdued amid mortgage rates sitting near a 20-year high.
3. May Retail Sales Expected to Show Small Rebound
U.S. retail sales for May are due at 8:30 a.m. ET and expected to show a modest rebound in consumer spending. Retail sales for the month are due to rise 0.2%, according to a survey of economists by Dow Jones Newswires and The Wall Street Journal. April’s surprisingly soft data showed that consumers are pulling back from spending as they grapple with high interest rates.
4. La-Z-Boy Jumps as Results, Outlook Signalling Resilient Consumer
Shares of furniture maker La-Z-Boy (LZB) are jumping 10% in premarket trading after the company’s quarterly results and outlook beat Wall Street forecasts, despite a sluggish housing market. For its fiscal fourth quarter ending April 27, the Monroe, Mich.-based company, which manufactures and sells residential and retail furniture, posted adjusted earnings of 95 cents per share even as revenue fell 1% year-over-year to $553.5 million. CEO Melinda Whittington said the company’s conversion rates were at all-time highs and average ticket and design sales were trending up for the year, despite the furniture industry facing challenges from higher-for-longer interest rates and housing turnover sitting near three-decade lows.
5. Boeing CEO Set for Senate Hearing Grilling on Safety, Whistleblowers
Boeing (BA) CEO Dave Calhoun, who said in March he would step down at the end of the year, is set to face a grilling from lawmakers today when he testifies before a Senate panel on the airplane maker’s travails this year. The hearing at the Senate Homeland Security Committee’s Permanent Subcommittee on Investigations will start at 2 p.m. ET. Calhoun is expected to be questioned on Boeing’s safety and manufacturing practices that led to a door plug flying off mid-air from an Alaska Airlines (ALK) flight in January, causing the Federal Aviation Administration (FAA) to bar the company from expanding production of its 737 Max jets, as well as a series of whistleblower allegations. According to The Wall Street Journal, “several high-profile candidates” have so far turned down the chance to replace Calhoun. The airplane maker’s shares are down less than 1% in premarket trading.
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