Housing starts are expected to rise and Intel ends its 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 (INTC) is ending its planned $5.4 billion acquisition of Israel-based chipmaker Tower Semiconductor (TSEM) after delays in getting regulatory approval for the deal that was struck in 2022. The development is considered a setback for Intel’s plan to expand its foundry services, enabling it to construct chips designed by other companies. Shares of Tower dropped almost 12% in pre-market trading, while Intel shares were up 0.15%.
2. Housing Starts Expected to Increase
Housing starts are expected to tick up to 1.45 million for July from 1.43 million in the prior month, while building permits are also expected to move higher, when the Census Bureau releases that data at 8:30 a.m. ET. Also today, the minutes of the July meeting of the Federal Open Market Committee will be released at 2 p.m. ET, and could give investors insight on how members of the Federal Reserve might act on interest rates at coming meetings.
3. Cava Shares Soar After Beating on Revenue, Earnings in First-Ever Report
Fast-casual restaurant chain Cava Group (CAVA) delivered better-than-expected earnings and revenue after it added 16 new restaurants in the quarter and kept menu price hikes to around 4%. In its first-ever earnings report after going public in June, the Mediterranean-themed chain delivered earnings of $0.21 a share on revenue of $171.1 million, against analyst estimates of $0.02 cents a share earnings on $163.2 million revenue. Shares of Cava jumped more than 12% in pre-market trading.
4. Coherent Shares Fall on Lower-than-Expected Earnings Outlook
Shares Coherent Corp. (COHR) plunged 22% in pre-market trading after the optoelectronics company issued forward guidance that was below analyst expectations. The company said it expects to deliver earnings-per-share of between $0.05 and $0.20 on revenue of $1 billion to $1.1 billion for its fiscal first quarter, where analysts were looking for $0.47 earnings per share on revenue of $1.17 billion.
5. Shares of Online Payment Provider DLocal Jump After Reporting Better-than-Expected Revenue
Shares of DLocal (DLO) were up 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 posted earnings of $0.15 a share for the second-quarter, better than the $0.10 a share it reported in the same quarter a year ago, while its revenue surged to $161.1 million in the quarter, better than the $149.4 million analyst expected to see.