Housing starts are expected to rise and Intel finalizes plans to acquire Israeli chipmaker Tower Semiconductor. Here’s what investors need to know today.
1. Intel drops plans to buy Israeli chipmaker Tower Semiconductor
Intel Corporation (INTC) is ending its planned $5.4 billion acquisition of Israel-based chipmaker Tower Semiconductor (TSEM) after delays in obtaining regulatory approval for the deal struck in 2022. The development is seen as a setback for Intel’s plan to expand foundry services. , enabling it to manufacture chipsets designed by other companies. Tower shares were down nearly 12% in premarket trading, while Intel shares were up 0.15%.
2. Housing starts are expected to increase
Housing Starts are expected to come in at 1.45 million for July from 1.43 million the previous month, while building permits are also expected to rise, when the Census Bureau releases that data at 8:30 a.m. ET. Also today, the minutes of the FOMC July meeting will be released at 2 p.m. ET, and they could give investors insight into how Fed members will act on interest rates at upcoming meetings.
3. Cava shares soared after beating revenue and earnings in their first-ever report
Fast-food chain Cava Group (CAVA) posted better-than-expected earnings and revenue after it added 16 new restaurants in the quarter and kept menu prices up around 4%. In its first-ever earnings report after going public in June, the Mediterranean-themed chain reported earnings of $0.21 per share on revenue of $171.1 million, versus analyst estimates of 0.02 cents for earnings on revenue of $163.2 million. Shares of Cava jumped more than 12% in pre-market trading.
4. Stocks holding lower on lower-than-expected earnings expectations
Coherent Corp. shares fell. (COHR) fell 22% in pre-market trading after the optoelectronics company issued forward-looking guidance that fell short of analyst expectations. The company said it expects earnings per share of $0.05 to $0.20 on revenue of $1 billion to $1.1 billion in the first fiscal quarter, as analysts were looking at $0.47 earnings per share on revenue of $1.17 billion.
5. Shares of online payment provider DLocal Jump after better-than-expected returns were reported
Shares of DLOCAL (DLO) rose 29% in pre-market trading after the online payments company reported second-quarter revenue that beat expectations after the Uruguay-based company said it grew in Brazil, Africa and Asia. The company reported earnings of $0.15 per share for the second quarter, better than the $0.10 per share it reported in the same quarter last year, while its revenue jumped to $161.1 million in the quarter, better than the $149.4 million an analyst expects to see.