Apple is planning to expand its production in India, where it is expected to build more than 50 million iPhones in India over the next two to three years, equivalent to a quarter of the total global production of the device, in an effort to reduce reliance on Chinese manufacturing. Foxconn, Apple’s main supplier, is expected to open a new factory in India next April, which is projected to produce 20 million phones annually, although the majority of the 220 million iPhones shipped annually will still be made in China. Apple’s shares did not change much in pre-market trading.
Job Growth Forecasts in the U.S. Economy as Unemployment Rate Stabilizes
When the U.S. employment report for November is released at 8:30 AM EST, it is expected to show that the economy added 190,000 jobs during the month, compared to 150,000 jobs in the previous month, while the unemployment rate is expected to stabilize at 3.9%. At 10 AM EST, the preliminary reading for the Michigan Consumer Sentiment Index is expected to come in at 62.4, which is higher than the previous reading of 61.3.
UK Regulator Opens Review of Microsoft’s Investment in OpenAI
The UK Competition and Markets Authority has opened an initial review of Microsoft’s $10 billion investment in OpenAI, making it the first major regulator to raise concerns about the tech company’s massive investment in this AI startup. The regulator stated in a release that it is investigating whether the funding creates a “relevant merger situation” where the two companies would cease to compete due to the deal. Microsoft’s shares fell by 0.5% in pre-market trading.
Teamsters Union Threatens Complaints Against UPS Over Unfair Labor Practices
The Teamsters union, which represents workers at United Parcel Service (UPS) parcel delivery, has threatened legal action against the company after it fired 35 workers at a facility in Louisville, Kentucky. While UPS stated that the move was permitted under the contract negotiated this summer with the 340,000 workers represented by the union, the Teamsters union claimed it violates an arbitration ruling and could file complaints over unfair labor practices, potentially leading to a strike. UPS’s shares did not change much in pre-market trading.
Lululemon Shares Fall Due to Revenue Expectations Lower Than Anticipated
Lululemon’s shares fell by about 3% in pre-market trading after the retailer reported that its fourth-quarter sales would range between $3.14 billion and $3.17 billion, which is below the $3.18 billion anticipated by analysts. Lululemon reported third-quarter revenue of $2.2 billion, exceeding analysts’ estimates of $2.19 billion, stating that the company has started the holiday sales season well, despite concerns regarding the macroeconomic environment.
Source: https://www.investopedia.com/5-things-to-know-before-the-stock-market-opens-december-8-2023-8413299
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