The S&P 500 futures are up 8 points (0.2% above fair value), Nasdaq 100 futures are up 70 points (0.4% above fair value), and Dow Jones Industrial Average futures are down 50 points (0.2% below fair value).
Dow Jones Industrial Average futures are lower, while S&P 500 and Nasdaq 100 futures are higher. NVIDIA (NVDA) is up in pre-market trading after recent declines, helping the broader market.
Treasury yields are lower ahead of some important events today. The 2-yr note yield is down one basis point to 4.72%, and the 10-yr note yield is down four basis points to 4.21%. Key events today include the June Consumer Confidence report (expected 100.0; prior 102.0) at 10:00 a.m. ET, and a $69 billion 2-yr Treasury note auction at 1:00 p.m. ET.
Other economic data today include the April FHFA Housing Price Index (prior 0.1%) and April S&P Case-Shiller Home Price Index (expected 6.9%; prior 7.4%) at 9:00 ET.
In corporate news:
- Apple (AAPL) is planning to cut headcount at some iPhone assembly makers by 50% and rejected an AI partnership with Meta (META).
- Oracle (ORCL) believes a TikTok ban would hurt its business.
- NVIDIA (NVDA) is up in pre-market trading after recent losses.
- Boeing (BA) proposed funding Spirit AeroSystems (SPR) acquisition with stock at a $35/share valuation and received a $210.9 million US Navy order.
- Tesla (TSLA) plans to recall thousands of Cybertrucks to fix wiper and trim issues.
- Pool (POOL) lowered its FY24 EPS guidance and said Q2 revenues are below expectations.
- SolarEdge Technologies (SEDG) filed for a $300 million convertible notes offering and reaffirmed Q2 revenue guidance.
- Walt Disney (DIS) received a Buy rating and a $125 price target from Goldman Sachs.
- Uber (UBER) had its Overweight rating reiterated by Piper Sandler, with a price target raised to $88 from $86.
Reviewing overnight developments:
Today's News
Nvidia (NVDA) is attracting significant attention after extending its recent losing streak, entering correction territory on Monday. The tech giant has lost $500 billion in market cap over the past several sessions, dropping to third place behind Apple (AAPL) and Microsoft (MSFT) in the rankings of the most valuable companies. Despite this, Nvidia remains up 140% year-to-date, making it the second-best performer in the S&P 500 Index, trailing only Super Micro Computer (SMCI).
Pfizer's (PFE) CEO Albert Bourla announced that the pharmaceutical company is testing three new weight loss drugs, one of which employs a different mechanism from the currently available GLP-1 agonists. Bourla did not disclose the exact mechanism of the third drug but mentioned that the other two would be GLP-1 candidates, similar to Novo Nordisk's (NVO) Wegovy. Pfizer plans to release data later in 2024 showing progress in the development of one of these weight loss therapy candidates, danuglipron.
Target Corporation (TGT) revealed that its Target Circle Week will run from July 7-13, offering significant savings on summer and back-to-school essentials. The retailer will provide deep discounts and personalized bonuses for members of the Target Circle loyalty program, including deals like 50% off select toys and up to 40% off kitchen and floorcare items. Additionally, there will be specific deals on Ulta Beauty (ULTA) products.
Enovix (ENVX) announced an agreement with a California-based technology company to supply silicon batteries and packs for a mixed reality headset, causing shares to rise about 14% in early trade. The deal includes an immediate one-time payment for tooling to support battery pack dimensions, followed by payments for the delivery of sample and production quantities.
Apple (AAPL) was in the spotlight as Evercore ISI raised its price target and revenue estimate for iPhones for fiscal year 2025, driven by the tech giant's recent artificial intelligence announcements. The firm expects strong demand for new iPhones equipped with Apple Intelligence features, which could shorten the replacement cycle and induce quicker upgrades among consumers.
Spirit AeroSystems (SPR) saw a premarket drop of up to 7.8% after a report that Boeing (BA) switched its proposed funding from an all-cash offer to a stock-funded deal, valuing the supplier at about $35 a share. Boeing aims to acquire Spirit to gain more control over its supply chain amid ongoing safety issues.
Morgan Stanley predicts that Tesla (TSLA) will become a more significant player in the U.S. energy market due to the power needs driven by the AI boom. The firm forecasts that U.S. data center power usage will be equivalent to the power used by 150 million electric cars by 2030, positioning Tesla to benefit from investments in the U.S. electric grid.
Shares of Capri Holdings (CPRI) rose in premarket trading following an upgrade from Wells Fargo to Overweight from Equal Weight. The stock is set to trade higher for a third consecutive day, with Wells Fargo highlighting potential value in Capri even if a merger with Tapestry (TPR) does not proceed.
Rigel Pharmaceuticals (RIGL) announced a reverse stock split, reclassifying every 10 shares into one new share to attempt to raise the per-share trading price and maintain compliance with Nasdaq's listing requirements. The split will reduce the number of outstanding shares from approximately 175.58 million to about 17.56 million.
Wave Life Sciences (WVE) saw a 54% premarket surge after announcing positive clinical trial results for WVE-003, an experimental therapy for Huntington’s disease developed in partnership with Takeda (TAK). The trial data showed a significant decline in mutant huntingtin protein levels, with the drug being safe and well-tolerated.
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