Freeport-McMoRan Jumps Following China Stimulus News

43 minutes ago

Freeport-McMoRan (FCX) shares surged on Tuesday amid an increase in the prices of copper and gold, two of the main commodities produced by the mining giant.

Copper futures prices jumped around 4%, reaching their highest level since mid-July, after the government of China revealed stimulus measures designed to provide a jolt to the country’s sluggish housing and financial markets.

Meanwhile, gold futures added roughly 1% on Tuesday, extending a recent uptick that has lifted the precious metal’s price to record levels. Lingering concerns about inflation following the Federal Reserve’s pivot to interest-rate cuts have helped drive the precious metal’s strong price performance.

The price of copper had been trending higher in September as the Fed prepared for and executed its first interest-rate cut. Since Fed rate cuts tend to weaken the dollar versus other currencies, and copper prices are listed in dollars, the metal becomes cheaper for buyers using other currencies, which can boost global demand and support higher prices.

Copper market analysts expect China’s newly announced stimulus measures to underpin additional strength for the metal. China is the world’s largest consumer of copper, and demand for the metal hinges largely on the property and construction sector, given its use in electrical wiring and plumbing. Since China’s stimulus package specifically targets the struggling property and housing markets, the policies could help drive a meaningful recovery in copper demand in the country.

Shares of Freeport McMoRan finished Tuesday up nearly 8%, leading gainers in the S&P 500.

–Michael Bromberg

Smartsheet Jumps on Deal With Vista, Blackstone

1 hr 52 min ago

Smartsheet (SMAR) shares jumped Tuesday after the work management platform said it agreed to be purchased by asset manager Blackstone (BX) and investment firm Vista Equity Partners for $8.4 billion in cash.

The deal gives Smartsheet investors $56.50 for each share they own, representing an 8.5% premium to Monday’s closing price. Smartsheet said it was a 41% premium to the volume weighted average closing price for the 90 days through July 17, the last full day of trading before media reports of a potential sale came out.

Smartsheet shares were up 6.4% at $55.44 in late trading Tuesday, at their highest level in more than two years.

The agreement gives Smartsheet a 45-day “go-shop” period to pursue other suitors. If nothing changes, the transaction is expected to close on Jan. 31.

–Bill McColl

Micron Price Levels to Watch Ahead of Earnings Report

4 hr 19 min ago

Micron (MU) shares were about 1% higher in afternoon trading Tuesday, gaining ground for the fourth straight session, ahead of the chipmaker’s eagerly anticipated fiscal fourth-quarter earnings report, due after Wednesday’s closing bell.

Analysts expect the company to swing to a profit and nearly double its revenue from a year earlier as it continues to benefit from surging demand for high bandwidth artificial intelligence (AI) memory chips to power data centers, smartphones, and PCs.

The stock has formed two distinct troughs between August and September, potentially marking a double bottom in the chipmaker’s shares.

Investors should monitor important lower price levels on Micron’s chart around $87 and $79, while watching key higher price levels near $109 and $128.

Read the full technical analysis piece here. 

–Timothy Smith

Visa Drops After Reports DOJ is Preparing Antitrust Suit

6 hr 21 min ago

Visa (V) shares dropped in early trading following reports that the payment processing giant is likely to be sued by the U.S. Department of Justice (DOJ) as soon as Tuesday over allegedly monopolistic behavior to protect its dominant position in the debit card market.

The DOJ is preparing to accuse Visa of using tactics like exclusive agreements to prevent competitors from growing large enough to challenge its dominant position, Bloomberg reported Monday night. In a subsequent report, The New York Times said the DOJ is also planning to allege that Visa penalizes customers for using a different payment processing service.

A potential suit would follow years of investigative work from regulators after an antitrust lawsuit led Visa and competing payment processor Plaid to abandon merger talks in January 2021.

 The DOJ said at the time that the planned $5.3 billion merger was an example of Visa’s monopolistic behavior, as it looked to acquire a potential rival before it was large enough to effectively challenge it.

Visa shares were down nearly 4%, leading Dow decliners Tuesday morning.

–Aaron McDade

Tesla Price Levels to Watch as Rally Continues

8 hr 19 min ago

Tesla shares were up in premarket trading after surging 5% on Monday as several analysts highlighted possible catalysts for the stock, including the potential for better-than-expected third-quarter vehicle deliveries and the EV maker’s upcoming robotaxi event.

The stock, which is back in the green for the year, has trended higher after finding support from a prior multi-month downtrend line and the neckline of an inverse head and shoulders pattern, though volumes remain below longer-term averages.

Investors should watch key support levels on Tesla’s chart around $225 and $205, while eyeing pivotal resistance levels near $265 and $300.

Tesla shares were up 1.8% at $254.45 in recent premarket trading.

Read the full technical analysis piece here.

–Timothy Smith

Major Index Futures Slightly Higher

8 hr 58 min ago

Futures tied to the Dow Jones Industrial Average were up 0.1%.

S&P 500 futures were also up 0.1%.

Nasdaq 100 futures were up 0.2%.