The S&P 500 futures are up 6 points, trading 0.1% above fair value. Nasdaq 100 futures are up 45 points, trading 0.3% above fair value. Dow Jones Industrial Average futures are down 40 points, trading 0.1% below fair value.
Stock futures suggest a mixed open for the major indices on this holiday-shortened week. Premarket gains in Apple (AAPL, Financial), due to a 52% increase in China shipments last month, and NVIDIA (NVDA), reacting to news that Elon Musk's xAI will spend billions on AI chips, are supporting the broader market.
Treasury yields are mostly unchanged. The 10-year note yield is up one basis point to 4.47%, and the 2-year note yield is down two basis points to 4.93%.
Today's economic calendar includes the March FHFA Housing Price Index and March S&P Case-Shiller Home Price Index at 9:00 ET, and the May Consumer Confidence Index at 10:00 ET. Other notable US data this week include the second estimate of Q1 GDP on Thursday and the Personal Income and Spending report for April on Friday.
In corporate news:
- Apple (AAPL 193.50, +3.52, +1.9%): China shipments increased 52% last month.
- GameStop (GME 23.40, +4.40, +23.5%): Sharply higher before the open, completing a previously disclosed at-the-market stock offering program.
- DraftKings (DKNG 37.94, -2.87, -7.0%): Illinois Senate approves tax increase on sports betting; DKNG considering acquisition of Simplebet.
- NVIDIA (NVDA 1096.19, +31.72, +3.0%): Up 3.0% pre-open on news that Elon Musk's xAI raised $6 billion.
- Amazon (AMZN 180.66, -0.09, -0.1%): AMZN Fresh aims to lower grocery prices by up to 30%.
- T-Mobile (TMUS 195.95, -0.05, -0.03%): US Cellular (USM) and TDS (TDS) announce sale of wireless operations and select spectrum assets to T-Mobile for approximately $4.4 billion in cash and assumed debt.
Reviewing overnight developments:
Today's News
Energy Transfer (ET) has announced a significant acquisition of WTG Midstream Holdings for approximately $3.25 billion. The deal includes $2.45 billion in cash and the issuance of roughly 50.8 million new Energy Transfer common units. WTG's extensive 6,000-mile pipeline network and eight processing plants will bolster Energy Transfer's operations in the Permian Basin. The acquisition is expected to enhance natural gas and natural gas liquids volumes, with two new plants under construction to further increase capacity.
Shares of Pineapple Energy (PEGY, Financial) surged 21.8% pre-market after its SUNation subsidiary secured a contract to work on a 1.95 MW commercial installation project in New York City. The project is part of a broader renewables pipeline, and SUNation was chosen for its expertise in interconnection and project delivery.
DraftKings (DKNG, Financial) is reportedly advancing an acquisition of Simplebet, a microbetting market provider. The deal is expected to be below Simplebet's $210 million valuation from a 2021 funding round. DraftKings already holds a 15% stake in Simplebet and aims to expand its in-game offerings. However, DraftKings' shares fell 7.65% pre-market, possibly due to a new tax increase on sports betting approved by the Illinois Senate.
Riot Platforms (RIOT, Financial) has accumulated a 9.25% stake in Bitfarms Ltd. (BITF) and intends to make a public bid for the smaller Bitcoin miner. Riot previously offered $2.30 per share in cash and stock, which was rejected by Bitfarms. Riot plans to call a vote to add directors at Bitfarms, aiming for a more favorable outcome.
Atlantica Sustainable Infrastructure (AY, Financial) saw a 7.5% drop pre-market after agreeing to be acquired by Energy Capital Partners for $22 per share in cash. The deal values Atlantica at approximately $2.55 billion. The acquisition is supported by Atlantica's major shareholder, Algonquin Power & Utilities, which owns 42.2% of the company.
CrowdStrike (CRWD, Financial) gained 2.4% pre-market following a positive outlook from Morgan Stanley. The firm sees CrowdStrike potentially reaching a $100 billion valuation within the next 12 months, driven by strong performance in Endpoint Security and growing adoption of its broader platform. The analyst raised the price target to $422 ahead of next week's earnings report.
GameStop (GME, Financial) shares climbed 26% pre-market after the company completed a $933 million equity offering. The proceeds will be used for general corporate purposes, including potential acquisitions and investments. The stock's volatility continues post-offering, driven by renewed interest from meme stock traders.
Apple (AAPL, Financial) reported a 52% surge in iPhone shipments in China for April, attributed to price cuts and discounts offered by retail partners. The China Academy of Information and Communications Technology noted a significant increase in foreign smartphone shipments, with Apple leading the pack.
Corcept Therapeutics (CORT, Financial) jumped 31% pre-market after its Phase 3 GRACE trial for relacorilant met the primary endpoint in patients with Cushing's syndrome. The drug showed a statistically significant effect in controlling blood pressure and was well-tolerated in both trial phases.
DuPont de Nemours (DD, Financial) was upgraded to Buy by Citigroup, which raised its price target to $95 from $85. The upgrade follows DuPont's announcement of a plan to split into three publicly traded companies, expected to unlock significant value for shareholders.
Bank of Nova Scotia (BNS, Financial) reported better-than-expected fiscal Q2 earnings, driven by higher revenue and expense controls. Adjusted EPS came in at C$1.58, beating estimates. The bank emphasized its focus on balanced growth and strong capital and liquidity metrics.
T-Mobile (TMUS, Financial) announced plans to acquire UScellular’s wireless operations for approximately $4.4 billion. The deal includes wireless customers, stores, and specified spectrum assets. T-Mobile's shares fell 4% pre-market, while UScellular’s shares dropped 0.8%.
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