U.S. stock futures were slightly lower on Monday after the S&P 500 and Nasdaq Composite posted their third straight winning week, ahead of key inflation data due out this week.
Market Snapshot
At 8:11 a.m. ET, Nasdaq-100 futures fell 0.2%, while S&P 500 futures fell a slight 0.07%. On the other hand, Dow Jones Industrial Average futures rose by 12 points, or 0.03%.
Pre-Market Movers
China ETFs and ADRs rally in premarket trading. YINN rose 18%; CHAU rose 11%; JD.com, XPeng rose 8%; PDD, Li Auto rose 7%; Alibaba, NIO rose 6%. China’s leaders on Monday pledged “more proactive” fiscal measures and “moderately” looser monetary policy next year to boost domestic consumption, according to an official readout of a key policy meeting that outlined upcoming economic priorities.
SUPER MICRO COMPUTER INC said it has been granted an extension from Nasdaq that gives the server marker until Feb. 25, 2025, to file its latest annual report. In a statement, Super Micro said it currently expects to file all the required reports by the deadline. The company also said its stock would remain listed on the Nasdaq during the exception period as long it remains in compliance with listing rules. Super Micro shares rose 10% in premarket trading.
Tesla Motors was up 2% in premarket trading after rising 5.3% on Friday to $389.22, the electric-vehicle maker's highest closing level since Jan. 3, 2022, and finishing with a market capitalization of $1.249 trillion, a record high, according to Dow Jones Market Data. Entering Monday, Tesla has risen 57% this year.
Apollo Global Management LLC, the alternative asset manager, and Workday, the workplace cloud-services platform, will be added to the S&P 500 prior to the start of trading on Dec. 23, in conjunction with the index's quarterly rebalancing. They will replace Qorvo and Amentum Holdings, both of which will move to the S&P Small Cap 600 index. Apollo Global Management LLC was up 6.2% and Workday jumped 9% in premarket trading. Qorvo fell 2.2% and Amentum Holdings, Inc. was down 1.2%.
AppLovin Corporation was falling 6% after the advertising-technology company wasn't added to the S&P 500. Barron's had reported Friday that AppLovin, Apollo, and Coinbase Global were leading candidates that might be added to the index because they have three of the largest market values of any companies not in the S&P 500. Coinbase Global, Inc. declined 1.5% in premarket trading.
SoFi Technologies Inc. was down 2%. Analysts at BofA downgraded shares of the financial-technology company to Underperform from Neutral and left their price target unchanged at $12, the Fly reported. The analysts noted the stock's gain of more than 120% over the past three months.
Earnings reports are expected Monday from Oracle, MongoDB Inc., Toll Brothers, and C3.ai, Inc..
Market News
Palantir Stock Pops on Expanded Pact with U.S. Special Operations Command
Shares of Palantir Technologies Inc. popped 7% Monday morning after the U.S. Special Operations Command (USSOCOM) expanded contract with the software firm to deliver advanced AI and mission manager capabilities.
The contract establishes Palantir as the lead software integrator for USSOCOM’s Mission Command System, with one-year delivery valued at $36.8M.
Nvidia Shares Drop After China Opens Investigation over Possible Violation of Antimonopoly Law
NVIDIA Corp shares were under pressure Monday after a Chinese regulator said it was investigating the chipmaker over possible violations to the country’s antimonopoly law.
Shares slipped about 2% before the bell.
The State Administration for Market Regulation opened an investigation into the chipmaker in relation to acquisition of Mellanox, the Chinese government said Monday.
AMD Falls as BofA Downgrades Amid AI, PC Concerns
Advanced Micro Devices was in focus on Monday as Bank of America downgraded the semiconductor company, citing lower estimates for artificial intelligence and PC-related revenue in 2025.
Shares fell 1.7% in premarket trading.
A higher competitive environment, specifically from Nvidia (NVDA), as well as the "growing" cloud preference for custom chips from Broadcom (AVGO) and Marvell Technology (MRVL) is likely to limit AMD's market share gain potential, Bank of America analyst Vivek Arya said in a note to clients.
Arya lowered his rating on AMD to Neutral from Buy and cut his 2025 and 2026 earnings estimates by 6% and 8%, respectively. He also lowered his price target to $155 from $180.
Comments