5 Things to Know Before Markets Open

List of contents[Close]

    GM shares climb as the automaker raises its guidance and cuts costs, while shares of Spotify advance after reporting a growing user base and raising prices on its services. Here’s what investors need to know today.

    1. GM Raises Guidance and Cuts Costs

    General Motors (GM) raised its 2023 guidance and reported $44.75 billion in quarterly revenue, ahead of the $42.64 billion that analysts had expected. The automaker also said it would increase cost-cutting measures through next year, with $3 billion in spending cuts now planned, compared with $2 billion in the company’s previous guidance. Shares of GM traded 0.8% higher in pre-market trading.1

    2. Spotify Shares Rise on Price Hike, User Growth

    Swedish music streaming service Spotify (SPOT) will increase its premium subscription price by as much as $2, or 20%, for some plans. In its second-quarter earnings report, Spotify grew its monthly active users to 551 million, beating estimates of 530 million and improving 27% over the same period last year. Spotify shares were up 3.5% in pre-market trading.2

    3. Goldman Sachs Shares Dip After Analyst Downgrade

    Analysts at Citi downgraded Goldman Sachs (GS) to “Neutral” from “Buy,” but also increased the banking stock’s price target to $400 from $370. The note said that analysts found Goldman’s 15% to 17% return on equity target achievable, but that more time would be needed, as well as a better investment banking environment. Shares of Goldman traded 0.8% lower in pre-market trading.3

    4. Apple Considering Raising Price of iPhone Pro

    Apple (AAPL) is reportedly considering raising the price of its iPhone Pro when the new model is released this fall. Since 2019, prices in the U.S. for the high-end iPhone Pro have been $999. Shares of Apple traded 0.3% higher in pre-market trading.4

    5. Consumer Confidence Index Expected to Move Higher

    The Conference Board's Consumer Confidence Index is projected to increase to a reading of 112 for July, up from 109.7 in June, when that data is released at 10 a.m. ET. Also today, the S&P Case-Shiller Home Price Index will be released at 9 a.m. ET, with the 20-city index projected to show home prices dropping 1.9% in May after falling 1.7% the prior month.5

    Leave a Comment