- Delta Air Lines began earnings season with earnings guidance that fell short of analysts’ expectations.
- Samsung has unveiled the Galaxy Ring, the latest version of its foldable phone, and more.
- Costco membership fees are increasing for the first time in seven years.
Here are five important things investors should know before starting the trading day.
The S&P 500 hit a new milestone on Wednesday, closing above 5,600 for the first time, driven by gains in semiconductor stocks. The broader market index rose 1.02%, its seventh consecutive day of gains, while the Nasdaq Composite Index rose 1.18%, hitting a new all-time high. The Dow Jones Industrial Average also joined the trend, rising 429.39 points (1.09%). Semiconductor stocks led the day, with Taiwan Semiconductor up 3.5% and NVIDIA up 2.7%, while Qualcomm and Broadcom rose about 0.8% and 0.7%, respectively. Follow our live market updates.
Budur Cukrut | LightRocket | Getty Images
Delta Air Lines shares fell nearly 10% in premarket trading Thursday morning after the airline kicked off earnings season with guidance that fell short of analysts’ expectations. Delta expects third-quarter revenue to be a record, driven by rising summer travel demand, but said it expects air capacity to grow 5-6% year-over-year, slower than the 8% increase it had expected in the second quarter. Airlines are struggling with profits as travel demand hits new highs and the industry faces rising costs. Meanwhile, Delta reported profits in line with expectations, with adjusted revenue of $15.41 billion, slightly below the $15.45 billion expected based on LSEG’s consensus estimate.
Attendees photograph the Samsung Electronics Galaxy Smart Ring at the launch ceremony for the ring in Seoul, South Korea on July 8, 2024.
Kim Hong-ji | Reuters
Samsung wants to put a ring on it. The tech giant on Wednesday unveiled the Galaxy Ring, a lightweight “smart ring” with sensors designed to monitor your health around the clock. Prices for the ring start at $399.99. The announcement comes as rival Apple has moved into the space, as users hang on to their smartphones longer and device makers look for additional electronics. At the Paris event, Samsung also unveiled its latest foldable smartphones, packed with AI features. The Samsung Galaxy Z Fold 6 starts at $1,899.99 and folds out like a book to reveal a larger screen, while the Z Flip 6 is a more traditional foldable phone with a bendable screen, priced from $1,099.99.
Pablo Gonchar | LightRocket | Getty Images
Shares of software company HubSpot plunged 12% on Wednesday after Bloomberg reported that Google parent Alphabet had shelved plans to buy the company. Alphabet had expressed interest in buying the company earlier this year, but “the two sides did not enter into detailed discussions on due diligence,” the report said, citing people familiar with the matter. HubSpot, which makes software that other companies use to automate marketing and reach prospects, has reported strong earnings and revenue growth in recent quarters. The acquisition would have helped Google boost revenue from its business software and cloud infrastructure, but U.S. regulators have resisted acquisitions involving big tech companies.
A customer enters a Costco Wholesale Corp. warehouse store in Hawthorne, California, on June 12, 2024.
Patrick T. Fallon | AFP | Getty Images
Costco is raising prices. The company announced Wednesday that it will increase the cost of its standard annual membership in the United States and Canada by $5 from $60 to $65, starting Sept. 1. The company’s premium membership plan, the Executive Plan, will increase by $10 to $130 from $120. This is the first time Costco has increased membership fees in seven years, postponing its usual schedule of increases every 5.5 years as consumers deal with high inflation.
—CNBC’s Brian Evans, Leslie Josephs, Arjun Karpal, Jordan Novett, Jennifer Elias and Melissa Repko contributed to this report.
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