Business Frame Weekly – Stocks making the biggest moves before the bell: General Motors, 3M, Spotify, Verizon / Markets should brace for a deep US recession

Stocks making the biggest moves before the bell: General Motors, 3M, Spotify, Verizon and more

Markets should brace for a deep US recession that warrants a dramatic one percentage-point interest-rate cut by the Federal Reserve, warned DoubleLine Capital’s Jeffrey Sherman.

General Motors CEO Mary Barra on Tuesday blamed a supplier of automation equipment for the slow ramp-up of GM’s new electric vehicles

In this newsletter:

• Stocks making the biggest moves before the bell: General Motors, 3M, Spotify, Verizon and more
• Deep Recession to Force Full Percentage-Point Fed Cut, DoubleLine Warns
• GM blames supplier for slow EV production
• Nasdaq opens higher with Microsoft, Alphabet results on deck
• Why Elon Musk rebranded Twitter as X

July 25, 2023

Stocks making the biggest moves before the bell: General Motors, 3M, Spotify, Verizon and more

Check out the companies making headlines in premarket trading. General Motors — Shares of General Motors rose more than 1% after the automaker raised its full-year guidance and reported second-quarter results that rose on a year-over-year basis. 3M – Shares of the manufacturer rose about 2% in premarket trading following the company’s latest earnings report. 3M posted $7.99 billion in revenue, beating analysts’ estimates of $7.87 billion, according to Refinitiv. The company also raised its full-year earnings guidance and reaffirmed its revenue guidance.

Deep Recession to Force Full Percentage-Point Fed Cut, DoubleLine Warns

Markets should brace for a deep US recession that warrants a dramatic one percentage-point interest-rate cut by the Federal Reserve, warned DoubleLine Capital’s Jeffrey Sherman. It’s a bold call based on weakening economic data that makes a recession probable next year for Sherman, coming even as the Fed is expected to hike further this week. Money markets are already betting on a total 130 basis points of Fed cuts in 2024, but Sherman thinks policymakers will end up being slow to act and then have to unleash the biggest cut since the pandemic struck.

GM blames supplier for slow EV production

General Motors CEO Mary Barra on Tuesday blamed a supplier of automation equipment for the slow ramp-up of GM’s new electric vehicles, after Wall Street criticized the rollout amid bold predictions the company would catch up to industry leader Tesla. Shares of GM were down roughly 4% in morning trading Tuesday despite quarterly results that topped year-ago performance. Analysts during the call questioned the company’s pricing strategies, EV profitability guidance and ability to hit previously announced targets for the vehicles.

Nasdaq opens higher with Microsoft, Alphabet results on deck

Stocks opened mixed on Tuesday, with tech shares on the rise as investors prepared for Microsoft (MSFT) and Alphabet (GOOGL) earnings later and for the Federal Reserve policy meeting to start. The tech-heavy Nasdaq Composite (^IXIC) was up about 0.4% as the rush of second-quarter results resumed. But the Dow Jones Industrial Average (^DJI) traded around the flatline, suggesting it could struggle to log a 12th straight day of gains, and the S&P 500 (^GSPC) was also little changed. Updates from Microsoft and Google due after the close should set the tone for Big Tech earnings that follow in the coming weeks. Updates on artificial intelligence will be keenly watched, given the buzz around AI propelled a soaring tech stock rally in the first half.

Why Elon Musk rebranded Twitter as X

Twitter has a new look: The iconic Twitter bird logo — known as "Larry" — has been replaced by an illustration of the letter X. Elon Musk teased the rebranding on Sunday, and the new logo, which Musk crowdsourced from his Twitter followers, went live on the app on Monday morning. "It’s an exceptionally rare thing — in life or in business — that you get a second chance to make another big impression," X Corp. CEO Linda Yaccarino shared in a thread on X, formerly Twitter. "Twitter made one massive impression and changed the way we communicate. Now, X will go further, transforming the global town square."

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