U.S. stock index futures fell as concerns over escalating tensions between Russia and Ukraine affected risk appetite globally, with investors rushing to safe-haven assets.
Russian President Vladimir Putin issued a warning to the United States on Tuesday, lowering the threshold for a nuclear strike just days after the administration of Joe Biden reportedly allowed Ukraine to fire American missiles deep into Russia.
Kyiv said on Tuesday it struck a Russian arsenal near the town of Karachev in the Bryansk region, over 110 km (70 miles) from Ukraine, in what two Ukrainian media outlets reported was a first strike with U.S.-supplied ATACMS missiles.
Russia's Lavrov said Moscow would respond to Ukraine's use of U.S.-made missiles to strike deep into Russia.
Market Snapshot
At 9:00 a.m. ET, Dow E-minis were down 502 points, or 1.15%, S&P 500 E-minis were down 57.25 points, or 0.97%, and Nasdaq 100 E-minis were down 210.25 points, or 1.02%.
Pre-Market Movers
Super Micro Computer - Super Micro Computer surged 25% after the server maker late Monday appointed an independent auditorand submitted a plan with Nasdaq that it believes supports its request for an extension of time to regain compliance with Nasdaq listing requirements. The stock will remain listed pending Nasdaq’s review of the plan. Super Micro said its board engaged BDO USA as its auditor, effective immediately. The company disclosed in late October that its previous accounting firm, Ernst & Young, had resigned.
Symbotic - Symbotic swung to a profit in the fourth quarter as revenue jumped 19% to $576.8 million. Adjusted earnings before interest, taxes, depreciation and amortization in the period were $54.6 million, up from $18.7 million a year earlier. The AI-enabled robotics technology company said it expects fiscal first-quarter revenue of $495 million to $515 million and adjusted Ebitda of $27 million to $31 million. Shares jumped 28% in premarket trading.
Bakkt Holdings - Shares of Bakkt, backed by NYSE-owner Intercontinental Exchange, jumped another 5% in premarket trading on Tuesday after soaring 162.5% on Monday. Donald Trump's social media company is in advanced talks to buy crypto trading firm Bakkt, the Financial Times reported on Monday, citing two people with knowledge of the talks.
Tesla - Shares of Tesla fell 1.2% in premarket trading after rising 5.6% on Monday following a report from Bloomberg that said President-elect Donald Trump will be seeking to create a federal framework for self-driving cars. A framework could make it easier to obtain self-driving licenses and allow autonomous cars to drive across state lines.
Nvidia - Nvidia was rising 0.3% following Monday’s slide of 1.3%. Third-quarter earnings Wednesday from the chip maker, the largest maker of artificial-intelligence related microchips, are the most anticipated event of the week. The stock has gained 180% this year, keeping Nvidia in close contention with Apple for the most valuable U.S. company.
Alphabet - Alphabet was down 0.8% after The Wall Street Journal reported the Justice Department is preparing to ask a judge, in a court filing expected Wednesday, to consider structural changes to Google’s business. According to a document seen by Journal,Google would have to sell off its Chrome browseror Android mobile operating system if it doesn’t limit how it connects its mobile products to the use of its search engine.
XPeng - U.S.-listed shares of XPeng were up 1.4% after the Chinese electric-vehicle maker reported anarrower third-quarter lossas revenue rose 18%. Gross margin in the period rose to a record 15.3%.
Walmart - Walmart raised its annual sales and profit forecast for the third consecutive time, with people buying more groceries and merchandise online and at its stores, a sign that it may be gaining market share ahead of the holiday season. The shares gained 2.1% in premarket trading.
Lowe's - Lowe’s was down 1.2% after the home-improvement retailer reported third-quarter adjusted earningsof $2.89 a share, beating analysts’ estimates of $2.82. A year earlier, however, Lowe’s reported earnings of $3.06 a share. Same-store sales fell 1.1% in the period.
Market News
Super Micro Computer Names BDO as Auditor, Files Nasdaq Compliance Plan
Super Micro Computer Inc. shares jumped in premarket trading Tuesday after the company hired a new auditor and filed a plan to come into compliance with Nasdaq listing requirements.
The server maker said it submitted a plan to the Nasdaq exchange for filing its 10-K financial disclosure report delayed in August. The company also announced that it appointed BDO USA as its independent auditor, effective immediately.
“In its compliance plan to Nasdaq, the company indicated that it believes that it will be able to complete its annual report on Form 10-K for the year ended June 30, 2024, and its quarterly report on 10-Q for the fiscal quarter ended Sept. 30, 2024, and become current with its periodic reports within the discretionary period available to the Nasdaq staff to grant,” Super Micro said Monday in a statement.
DOJ Will Push Google to Sell Chrome to Break Search Monopoly
Top Justice Department antitrust officials have decided to ask a judge to force Alphabet Inc.’s Google to sell off its Chrome browser in what would be a historic crackdown on one of the world’s biggest tech companies.
The department will ask the judge, who ruled in August that Google illegally monopolized the search market, to require measures related to artificial intelligence and its Android smartphone operating system, according to people familiar with the plans.
Antitrust officials, along with states that have joined the case, also plan to recommend Wednesday that federal judge Amit Mehta impose data licensing requirements, said the people, who asked not to be named discussing a confidential matter.
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