U.S. stock index futures on Monday extended gains from the previous week in the run-up to another round of earnings from big U.S. banks on easing bets of a super-sized interest-rate hike by the Federal Reserve.
Big tech stocks shined in premarket trading. Apple, Microsoft, Alphabet, Amazon, Meta Platforms, Netflix, Tesla and Nvidia climbed between 0.9% and 3%.
Market Snapshot
At 7:50 a.m. ET, Dow e-minis were up 346 points, or 1.11%, S&P 500 e-minis were up 39.50 points, or 1.02%, and Nasdaq 100 e-minis were up 148.75 points, or 1.24%.
Pre-Market Movers
Goldman Sachs (GS) – Goldman gained 3.8% in premarket trading, following upbeat profit and revenue. Second-quarter earnings came in at $7.73 per share, compared to a consensus estimate of $6.58 a share. Goldman’s profit dropped from a year ago, however, as the pace of dealmaking slowed.
Bank of America (BAC) – Bank of America fell 2 cents a share shy of estimates with quarterly earnings of 73 cents per share, though revenue came in slightly above Wall Street forecasts. Bank of America’s results were impacted by a sharp drop in investment banking revenue. The stock initially fell 0.8% in the premarket but then pared those losses.
Coinbase (COIN) – Coinbase rallied 5.7% in premarket action, with the cryptocurrency exchange operator’s stock one of several crypto-related stocks rising after the value of bitcoin and ether surged in overnight trading.
Boeing (BA) – Boeing announced that Delta Air Lines (DAL) had ordered 100 Boeing 737 Max jets, and also said that the company was very close to resuming deliveries of its 787 Dreamliner. Boeing jumped 4% in premarket trading.
GlaxoSmithKline (GSK) – The company formerly known as GlaxoSmithKline completed the spin-off of its consumer health business into a separate company known as Haleon, which contains well-known brands such as Advil and Sensodyne. GSK fell 1% in the premarket.
Starbucks (SBUX) – Starbucks rose 0.8% in the premarket after the Sunday Times reported that the coffee chain is exploring a possible sale of its U.K. operations.
Twitter (TWTR) – Elon Musk filed a court motion late Friday seeking to deny Twitter’s request for an expedited trial over his move to terminate his $44 billion takeover deal.
Seagen (SGEN) – The closing of Merck’s (MRK) $40 billion deal to buy Seagen will be delayed, according to people familiar with the matter who spoke to The Wall Street Journal. The delay stems from a wait for data evaluating a study of a Seagen treatment. The stock slid 2.9% in the premarket.
Synchrony Financial (SYF) – The financial services company’s stock rallied 3.7% in the premarket after it reported better-than-expected profit and revenue for the second quarter. Synchrony pointed to upbeat loan growth and credit trends, with the consumers remaining strong.
Paramount Global (PARA) – The media company’s stock lost 2% in premarket trading after Morgan Stanley downgraded it to “underweight” from “equal-weight,” noting the possibility of advertisers and consumers pulling back in a recession scenario.
Fresh Del Monte Produce (FDP) – The fruit and vegetable company’s stock rose 12% in premarket trading after Bloomberg reported that private-equity firm I Squared Capital is considering a takeover, as one option to expand a partnership agreement struck in 2021.
Market News
Morgan Stanley Sees Stock Losses Even If There’s No Recession
A rally in stock markets may prove to be short-lived as inflation pressures remain high and a recession seems increasingly likely, according to strategists at Morgan Stanley and Goldman Sachs Group Inc.
While the slump in equities since the beginning of the year reflects investor expectations of a contraction in growth, “I don’t think a deep recession is being priced yet,” said Peter Oppenheimer, chief global equity strategist at Goldman Sachs. “It’s premature to believe inflation is going to come down quickly or the pressure has eased for the Federal Reserve and other central banks to tighten,” he said on Bloomberg TV.
Boeing Wins Order From Delta in Much-Needed Air Show Boost
Boeing Co. announced a firm order for 100 of its 737 Max 10 jetliners from Delta Air Lines Inc., its opening salvo at the Farnborough air show that the US planemaker hopes will provide a boost after it fell behind arch-rival Airbus SE.
The purchase includes an option for 30 additional jets, the companies announced at the event on Monday. Should Delta convert the options into firm orders, the deal has a value of about $17.6 billion, though customers typically get steep discounts on large purchases.
GSK Spins off Haleon in Biggest European Listing for a Decade
In a long scripted overhaul of its business, British drugmaker GSK spun off its consumer health business on Monday in the biggest listing in Europe for more than a decade.
The new company, Haleon, becomes the world's biggest standalone consumer health business, home to brands including Sensodyne toothpaste and Advil painkillers.
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