The S&P 500 futures are up 23 points, trading 0.5% above fair value. Nasdaq 100 futures are up 119 points, 0.7% above fair value. Dow Jones Industrial Average futures are up 146 points, 0.4% above fair value.
There's a positive start to the week with a busy schedule ahead. Earnings reports from Microsoft (MSFT, Financial), Meta Platforms (META, Financial), Amazon (AMZN, Financial), and Apple (AAPL, Financial) are expected. These mega cap stocks are higher in pre-market trading, lifting the overall market.
The early positive trend is also due to a drop in Treasury yields. The 10-year note yield is down five basis points to 4.15%, and the 2-year note yield is down three basis points to 4.36%.
This week also includes a Federal Reserve decision on Wednesday. The FOMC is expected to keep rates unchanged and may signal a rate cut for the September meeting.
The economic calendar features the July Employment Situation report on Friday.
In corporate news:
- McDonald's (MCD 253.70, +1.70, 0.7%): misses earnings by $0.10, misses on revenue
- Abbott (ABT 99.50, -5.74, -5.5%): will pay $495 million in damages related to baby formula case
- Walt Disney (DIS 90.66, +0.73, +0.8%): 'Deadpool & Wolverine' earned $205 million at the box office
- Bristol-Myers (BMY 49.87, -0.58, -1.2%): downgraded to Underweight from Equal Weight at Barclays
- 3M (MMM 126.81, -0.18, -0.1%): upgraded to Buy from Hold at Deutsche Bank
Overnight developments:
Today's News
In a significant boost to the cryptocurrency community, former President Donald Trump made an appearance at the Bitcoin 2024 Conference in Nashville over the weekend. During his speech, Trump emphasized the strategic and geopolitical importance of embracing crypto and Bitcoin technology, warning that if the U.S. does not lead in this sector, countries like China will. This marks a notable shift from his previous stance when he was critical of cryptocurrencies.
Stock index futures traded positively on Monday as investors braced for major tech earnings and the Federal Reserve's policy decision this week. Tech giants like Microsoft (MSFT, Financial), Meta Platforms (META, Financial), Apple (AAPL, Financial), and Amazon (AMZN, Financial) are set to report earnings, drawing significant attention to the sector, especially after a recent tech selloff.
Apple (AAPL, Financial) was in focus as research firm TDCowen increased its price target on the tech giant, citing optimism around its next iPhone. Analyst Krish Sankar predicted a 4% year-over-year revenue rise for the coming quarter and upped his sell-in forecast to 240M iPhone units for fiscal 2025. Despite some concerns about Apple's position in China, the company is expected to see iPhone revenue growth in the December quarter.
HSBC downgraded Arm Holdings (ARM, Financial) ahead of its first-quarter earnings report, citing concerns about its elevated valuation and potential slowdown in the Android smartphone market. Despite the downgrade, the price target was slightly increased to $105 from $100, reflecting cautious optimism about the company's AI-related growth prospects.
Cognition Therapeutics (CGTX, Financial) saw a significant premarket jump after a mid-stage trial showed consistent improvement in cognitive outcomes for its experimental Alzheimer's drug, CT1812. The Phase 2 trial met its primary objective, demonstrating a favorable safety and tolerability profile and a 40% mean improvement in cognitive measures compared to placebo.
Onsemi (ON, Financial) shares surged about 8% in premarket trading after the company reported second-quarter results that exceeded expectations. The company provided optimistic third-quarter guidance, anticipating revenue between $1.7B and $1.8B and non-GAAP EPS in the range of $0.91 to $1.03. CEO Hassane El-Khoury emphasized the company's commitment to growth through market share gains and strategic investments.
Tesla (TSLA, Financial) gained traction in early trading after Morgan Stanley named it the top pick in the automobile sector. Analyst Adam Jonas highlighted a 40% upside to the firm's price target of $310, driven by Tesla's strong position in the energy storage business and recurring services revenue. Jonas also noted Tesla's aggressive redeployment of resources away from the auto side of the business.
McDonald's Corporation (MCD, Financial) experienced a slight dip in early trading after reporting a decline in global comparable sales for Q2. The restaurant giant saw a 1.0% drop in global comparable sales, driven by negative guest counts despite strategic menu price increases. The U.S. and International Operated Markets segments also reported declines, impacted by various market conditions.
Alibaba (BABA, Financial) stock climbed 3.10% premarket as the company announced a new percentage-based fee structure for merchants on its Tmall and Taobao platforms. The change aims to boost core revenue by implementing a 0.6% software service fee on confirmed transactions, aligning Alibaba with broader industry trends.
TotalEnergies (TTE, Financial) announced its exit from a gas-rich block offshore South Africa, citing the economic challenges of developing and monetizing the Brulpadda and Luiperd discoveries. Despite spending at least $400M on the project, the company decided to retain its exploration acreage in the region while other stakeholders like Canadian Natural Resources (CNQ) also plan to withdraw.
Roche (OTCQX:RHHBY) plans to fast-track its anti-obesity drugs to challenge market leaders Eli Lilly (LLY) and Novo Nordisk (NVO). CEO Thomas Schinecker indicated that the company's first obesity drugs could come to market significantly faster than expected, potentially by 2028, following promising data from recent trials.
