News of the day for September 5, 2024

Broadcom's ( AVGO ) artificial intelligence (AI) -related outlook will be in investors' sights during the chipmaker's quarterly results after the bell; U.S. President Joe Biden reportedly is preparing to block Nippon Steel's $14.1 billion takeover of U.S. Steel ( X ); Verizon Communications ( VZ ) is buying Frontier Communications ( FYBR ) in an all-cash deal valued at $20 billion; Stellantis ( STLA ) temporarily pauses production of its top-selling Jeep Wrangler and Grand Cherokee sports-utility vehicles; and Tesla ( TSLA ) is planning to delay its Full Self-Driving (FSD) release in China and Europe until the first quarter of 2025. U.S. stock futures are little changed after markets closed mixed Wednesday . Here's what investors need to know today.

1. Broadcom's AI Outlook in Focus for Q3 Results

Semiconductor maker Broadcom ( AVGO ) releases its quarterly results after the bell today, with investors focused on AI-related updates. Citi analysts said they believe Broadcom has secured Microsoft-backed ( MSFT ) OpenAI as a new AI custom chip customer and could announce the deal in its earnings report. Analysts expect revenue to have risen from a year ago to $13.04 billion but net income to have slipped to $2.91 billion, according to estimates compiled by Visible Alpha. Broadcom shares are edging lower in premarket trading.

2. Biden Reportedly Set to Nix Nippon Steel Takeover of US Steel

U.S. President Joe Biden is preparing to block Nippon Steel's $14.1 billion takeover of U.S. Steel ( X ), according to reports, saying a decision could be made as soon as this week. In an interview with The Wall Street Journal , the CEO of U.S. Steel warned that the company would have to close steel plants and likely move its headquarters from Pittsburgh if the deal doesn't go through. The likely blocking of the deal was first reported by The Washington Post . U.S. Steel shares are rising 3% in premarket trading after closing 17% lower Wednesday following the Post report.

3. Frontier Tumbles as Verizon Announces $20B All-Cash Takeover Plan

Shares of Frontier Communications ( FYBR ) are tumbling 9% in premarket trading after Verizon Communications ( VZ ) said it plans to buy the fiber network company for an all-cash deal price of $20 billion. Verizon is offering Frontier shareholders $38.50 a share in cash, a 44% premium to Frontier’s 90-day volume-weighted average share price on Tuesday, the day before The Wall Street Journal reported that a deal was close. Frontier shares jumped 38% to close Wednesday at $38.68, higher than the offer price. Verizon shares are rising less than 1%.

4. Stellantis Pauses Jeep Wrangler, Grand Cherokee Production

Stellantis ( STLA ) has temporarily stopped making its top-selling Jeep Wrangler and Grand Cherokee sports-utility vehicles in the past week, as dealers complain about excess inventory. It paused production at two Detroit plants that make the Grand Cherokee, and another factory in Toledo, Ohio, where the Wrangler is made. "Stellantis continues to take the necessary actions to improve operations in the U.S. market. This included making production adjustments at the Toledo North, Jefferson and Mack plants," a spokesperson said in a statement to Investopedia , adding it "will continue to monitor the situation to assess whether further action is required." Stellantis, whose shares are edging higher in premarket trading, said it will resume production Thursday.

5. Tesla to Delay Full Self-Driving Rollout in China, Europe

Tesla ( TSLA ) is planning to delay its Full Self-Driving (FSD) release in China and Europe until the first quarter of 2025. In a post on X, the electric-vehicle (EV) maker helmed by Elon Musk said the technology is "pending regulatory approval" from local authorities. Tesla, which reportedly was planning to launch the technology in China this year , lags domestic rivals in offering driver-assistance features in the highly competitive market. Tesla shares are up more than 2% in premarket trading.

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