Shares of electric vehicle (EV) maker Tesla (TSLA) are backing off some of Monday’s big gains as the company prepares to release its long-awaited second-quarter delivery numbers. Paramount Global (PARA) shares are rising after billionaire Barry Diller’s IAC is reportedly considering a bid for a controlling stake in the entertainment giant. Federal Reserve Chairman Jerome Powell is scheduled to speak at the ECB’s central banking forum. Investors in cloud software company Salesforce (CRM) voted against a compensation plan for CEO Marc Benioff and other executives after a shareholder advisory group slammed high compensation levels. And shares of cruise operators Royal Caribbean (RCL), Carnival (CCL) and Norwegian Cruise Line (NCLH) are all falling as Beryl became the fastest Category 5 hurricane in the Atlantic. U.S. stock futures are falling after the Nasdaq Composite Index rose to a record high on Monday. Here’s what investors need to know today.
1. Tesla releases long-awaited second-quarter delivery numbers
Tesla (TSLA) shares fell about 2% in premarket trading, giving up some of the gains they made on Monday when they hit their highest close since January. The veteran EV maker is set to report its long-awaited second-quarter delivery numbers today. Visible Alpha’s current consensus is for deliveries of just under 439,000 vehicles after the company reported roughly 387,000 in the first quarter. Chinese EV makers Nio (NIO), Li Auto (LI) and XPeng (XPEV) all reported solid monthly and quarterly delivery increases on Monday, with Nio announcing its highest monthly deliveries on record in June.
2. Paramount shares soar after reports that Barry Diller is the latest suitor to buy the company.
Paramount Global (PARA) shares were up 3% in pre-market trading. The New York Times Billionaire Barry Diller is reportedly vying to take control of the entertainment giant. In the latest development in the battle over who owns CBS and Nickelodeon, Diller’s digital media conglomerate IAC has reportedly signed a non-disclosure agreement with Paramount’s controlling shareholder, National Amusements. (IAC is Investopedia The non-disclosure agreement was signed after National Amusements owner Shari Redstone reportedly called off months of merger talks after the Paramount-Skydance Media deal collapsed last month. Times Said.
3. Investors look to Powell’s speech and JOLTS data for clues on rate cuts
Investors will be watching two events that could offer clues about the Fed’s plans to cut interest rates: Fed Chairman Jerome Powell will speak at a European Central Bank event in Portugal. The central bank is expected to cut interest rates once this year. Job Openings and Labor Turnover Survey (JOLTS) data, due for release at 10 a.m. ET, could also help determine the trajectory of the Fed’s interest rates. The JOLTS data is expected to show that job openings fell to 7.9 million in May from 8.1 million in April, according to a survey of economists. Dow Jones Newswires and The Wall Street Journal.
4. Salesforce Investors Vote Against CEO Benioff’s Compensation Plan
Investors at cloud-software company Salesforce (CRM) voted against the compensation plan for CEO Marc Benioff and other top executives after a shareholder advisory group complained that Benioff’s stock compensation was too high. Benioff will receive $39.65 million in total compensation for fiscal year 2024, an increase of more than 32% from last year. While the board had urged shareholders to vote in favor of the compensation plan, shareholder advisory firms Glass Lewis and Institutional Shareholder Services have both reportedly recommended that investors vote against the plan. Salesforce shares fell about 1% in premarket trading.
5. Beryl becomes the first Category 5 hurricane in the Atlantic, further hurting cruise operators
Cruise line shares continued to fall in premarket trading after Beryl was upgraded to a Category 5 hurricane, the first in the Atlantic. Beryl has forced ships to reroute, heralding a dangerous hurricane season this year. Shares of Royal Caribbean (RCL), Carnival (CCL) and Norwegian Cruise Line (NCLH) are all falling after posting big losses on Monday.
