Morning Brief | McDonald Plummets due to food contamination; Qualcomm and ARM Go To War

Pre-market Movers

Ahead of Wednesday's trading, the three major U.S. stock index futures were down, with Dow futures down 0.46%, S&P 500 futures down 0.22% and Nasdaq 100 futures down 0.36% at press time.

McDonald's dropped 6.5% in pre-market. E. coli, a type of bacteria that can cause serious stomach problems, has been found in McDonald's Quarter Pounder sandwiches, the CDC announced on Tuesday.

Qualcomm shares dropped nearly 4% in pre-market trading. Arm has given Qualcomm a mandated 60-day notice of the cancellation of their so-called architectural license agreement. The contract allows Qualcomm to create its own chips based on standards owned by Arm.

Texas Instruments rose in premarket trading, after the chipmaker reported third-quarter income that topped analysts' expectation.

Market Watcher

S&P 500 Exposure Reaches Critical Levels That Likely to Trigger 10% Slump, Citi Warns

Exposure to the S&P 500 has reached levels that historically preceded a 10% slump, according to Citigroup strategists, Long positions on futures linked to the benchmark index are at their highest since mid-2023 and are looking particularly extended.

Citi's strategists also noted that profitable positions are less stretched compared to 2023, suggesting less capital at risk and therefore less motivation to cover if markets pull back.

Pre-market Headlines

Apple working on new App Store-like app dedicated to games

As Apple continues to invest in gaming, the company appears to be developing a new app, similar to the App Store, specifically for games.

According to information obtained by 9to5Mac from reliable sources, the new app will bring together features from both the App Store and Game Center. However, it won't replace Game Center; instead, it will integrate with users' existing Game Center profiles.

The app will feature multiple tabs, including a "Play Now" section, a tab for the user's games, friends, and more. In the "Play Now" tab, users will find editorial content and personalized game recommendations. The app will also display challenges, leaderboards, and achievements. Both App Store and Apple Arcade games will be available in this new platform.

Amazon sets ultra-low pricing plans for Temu rival store

Amazon is reportedly setting strict price limits on what merchants can charge for products on a new low-cost storefront the company is preparing to launch, according to a report by The Information on Tuesday. 

The price caps include $8 for jewelry, $13 for guitars, and $20 for sofas, as outlined in messages Amazon sent to merchants. These messages reportedly included a list of 700 items. 

The report also mentioned that Amazon plans to ship orders directly to U.S. customers from a facility in Guangdong, China, and is offering merchants lower fulfillment fees for products sold through this new platform.

World at A Glance

North Korean troops in Russia, US defense secretary says

U.S. Defense Secretary Lloyd Austin said on Wednesday there is evidence that North Korea troops are in Russia, and it remained to be seen what they would be doing there.

Ukrainian President Volodymyr Zelenskiy has cited intelligence about the preparation of two units with possibly up to 12,000 North Korean troops who would take part in the war alongside Russian forces.

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