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Tesla shareholders back Musk pay package, Adobe's outlook - what's moving markets

Published 06/14/2024, 03:52 PM
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Investing.com -- U.S. stock futures were mixed on Friday, after a streak of record high closes for the S&P 500 and Nasdaq Composite stretched into a fourth straight session. In a victory for Tesla (NASDAQ:TSLA) CEO Elon Musk, the electric carmaker's shareholders approved his $56 billion pay package. Adobe (NASDAQ:ADBE) shares spike in extended hours trading after the Photoshop-maker lifts its annual financial guidance.

1. Futures mixed

U.S. futures were hovering around both sides of the flatline on Friday after the benchmark S&P 500 and tech-heavy Nasdaq Composite registered yet another record closing high in the prior session despite the Federal Reserve tempering some investor hopes for interest rate cuts this year.

By 03:37 ET (07:37 GMT), the S&P 500 futures contract had edged down by 4 points or 0.1%, Nasdaq 100 futures had gained 33 points or 0.2%, and Dow futures had slipped by 101 points or 0.3%.

Following the bell on Thursday, the S&P 500 and Nasdaq Composite stood at fresh all-time highs for the fourth consecutive session, boosted in part by a Labor Department report showing an unexpected month-on-month decline in producer prices in May.

The data helped to soothe some market jitters around the Fed's updated policy projections earlier in the week, which signaled that the central bank now expects to reduce rates just once in 2024. In March, officials at the rate-setting Federal Open Market Committee had forecast three.

2. Tesla shareholders approve Musk pay deal

Tesla shareholders have voted in favor of Chief Executive Elon Musk's $56 billion compensation package and the electric vehicle giant's reincorporation in Texas from Delaware.

The decision, which was announced by the company at an event in Texas on Thursday, was fueled in part by Musk's strong support from retail investors who have praised him for spearheading Tesla's past advances despite more recent worries over its flagging sales and stock price.

Their backing helped to offset vocal opposition from several institutional investors and proxy groups who had flagged concerns over the size of the pay deal -- the largest in U.S. corporate history.

Tesla's move to reincorporate in Texas also comes after a judge in Delaware voided Musk's pay package earlier this year, which drew the ire of the billionaire. Despite this week's approval, an ongoing appeal of the judge's ruling is projected to continue for months.

3. Adobe lifts annual guidance

Adobe raised its annual earnings guidance after the Photoshop-maker reported better-than-expected second-quarter results, sending shares in California-based firm surging by over 14% in extended hours trading.

For the three months ended May 31, Adobe reported adjusted earnings of $4.48 a share on revenue of $5.31 billion. Analysts polled by Investing.com had forecast $4.39 and $5.29 billion, respectively.

"“Our highly differentiated approach to AI and innovative product delivery are attracting an expanding universe of customers and providing more value to existing users,” said CEO Shantanu Narayen in a statement.

As a result, the company is now predicting that full-year earnings per share will be between $18.00 and $18.20, while revenue is projected in a range of $21.40 billion to $21.50 billion. It had previously forecast per-share income of $17.60 to $18 and revenue of $21.30 billion to $21.50 billion for its 2024 fiscal year.

4. Roaring Kitty appears to almost double GameStop (NYSE:GME) holdings

Keith Gill, the investor known online as "Roaring Kitty", appeared to have raised his holdings of video game retailer and meme stock darling GameStop's common stock, according to a screenshot he shared on social media site Reddit.

In the screenshot, Gill seemed to have owned just over 9 million shares in the company, up from 5 million earlier this week, and more than $6 million in cash.

Gill's update, which came after the close of trading on Thursday, amounted to 2.1% of GameStop's 426 million outstanding shares, according to a recent regulatory filing cited by Reuters.

He also seemed to no longer own the 120,000 strike call options he had previously disclosed in his return to Reddit on June 2 following a three-year absence from the website.

5. Oil slips, but remains on pace for strong week

Crude prices retreated Friday, but were on course for their best week in more than two months on increased hopes for demand growth this year.

By 03:37 ET, the U.S. crude futures (WTI) traded 0.5% lower at $78.23 per barrel, while the Brent contract dropped 0.3% to $82.48 a barrel.

Both benchmarks were up over 3% this week -- the best week since April 5.

The Organization of the Petroleum Exporting Countries stuck to a forecast for relatively strong growth in global oil demand for 2024, overshadowing a more bearish report by the International Energy Agency. Additionally, influential investment bank Goldman Sachs forecast solid U.S. fuel demand this summer.

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