The S&P 500 futures are down 4 points (0.1%), Nasdaq 100 futures are down 84 points (0.4%), and Dow Jones Industrial Average futures are up 98 points (0.3%).
Early trading shows mixed results. Dow industrials futures are higher, while Nasdaq 100 futures are lower due to weakness in some large-cap stocks. Apple (AAPL, Financial) is down 2.5% after a report indicated lower estimated iPhone 16 preorders compared to iPhone 15.
Traders are waiting for the Federal Reserve's first rate cut since March 2020, expected this Wednesday. The market now sees a 63% chance of a 50 basis points cut, up from 50% on Friday, according to the CME FedWatch Tool.
The 10-year yield is down 2 basis points to 3.63% and the 2-year yield is down 3 basis points to 3.55%.
Today's News
Intel (INTC, Financial) suffered a significant setback as it lost the contract to design and manufacture processors for the upcoming Sony (SONY, Financial) PlayStation 6 gaming console to AMD (AMD, Financial) and Taiwan Semiconductors (TSM, Financial). The loss could have amounted to approximately $30 billion in revenue. Despite this, Intel shares rose 1.2% in premarket trading due to a report that it has qualified for a grant to manufacture chips for the Pentagon.
Apple (AAPL, Financial) was in the spotlight as analyst estimates showed that the first weekend pre-order shipments for the iPhone 16 line were roughly 37 million units, marking a 12.7% year-over-year decline. The lower-than-expected demand for the iPhone 16 Pro series was cited as a key factor, leading to a 1.9% drop in Apple's shares in premarket trading.
China has announced a breakthrough in domestically developed chip-making machines, which could help the country overcome U.S. curbs on its semiconductor ambitions. The new laser-based immersion lithography system boasts a resolution of 65 nanometers or better, advancing from the previous 90nm equipment. The Chinese government is promoting these machines, which have achieved significant technological breakthroughs and own intellectual property rights.
Applied Materials (AMAT, Financial), Lam Research (LRCX, Financial), and KLA Corp. (KLAC, Financial) experienced a dip in premarket trading after Citi cut estimates for wafer fab equipment spending due to weaker-than-expected consumer demand. Analyst Atif Malik lowered price targets for these companies, citing lackluster demand across PCs, smartphones, and autos, while noting that server AI demand remains strong.
Trump Media & Technology Group (DJT, Financial) saw its shares jump over 6% following former President Donald Trump's announcement that he will not sell his shares when his lockup period ends on September 20. This news builds on a 12% rally from Friday's session, with Trump holding 114.75 million shares, representing 57% of the company's stock.
Oracle (ORCL, Financial) co-founder Larry Ellison briefly overtook Amazon (AMZN) founder Jeff Bezos to become the world's second-richest person after Oracle's shares saw their best week since late 2021. Oracle's stock gained 14.3% last week following impressive Q1 earnings and long-term targets, though Ellison's net worth has since adjusted to $197.7 billion.
Zillow (ZG, Financial) rose 3.5% in premarket trade as Wedbush upgraded the firm to Outperform from Neutral. The upgrade was driven by the potential upside risk to its estimates from the firm's software and services initiatives. Analysts raised the price target to $80 from $50, noting that free-falling mortgage rates could be a catalyst for the company's growth.
Virax Biolabs (VRAX) announced an extension of its exclusive distribution agreement with Cosmos Health (COSM, Financial) to commercialize Mpox Virus Real-Time PCR Detection kits in countries within the Gulf Cooperation Council. The agreement aims to boost the availability of these kits in the region.
ChargePoint (CHPT) has appointed David Vice as Chief Revenue Officer to drive growth and oversee global Sales and Marketing functions. CEO Rick Wilmer highlighted Vice's extensive experience in building high-performing teams in multinational companies focused on software as a key asset for driving ChargePoint's revenue growth.
BrainsWay (BWAY) expanded its Deep TMS platform along the U.S. East Coast through a significant order of 14 new systems by a large and growing enterprise network. CEO Hadar Levy emphasized the strategic importance of cultivating strong relationships with various mental health groups for long-term growth.
Lexicon Pharmaceuticals (LXRX) announced the departure of its president and COO, Jeff Wade, on or about September 30. The company is currently searching for a new COO, with Wade having spent 25 years in various leadership roles at Lexicon.
Relay Therapeutics (RLAY) saw a 5% rise in premarket trading after Stifel and HC Wainwright issued bullish notes on the stock. Promising interim data on a breast cancer asset showed a 9.2-month median progression-free survival for heavily pretreated patients given RLY-2608 in combination with AstraZeneca's Faslodex (fulvestrant). The company plans to initiate a pivotal study for the treatment in 2025.
