U.S. stock futures fell Monday as investors awaited more economic data ahead of the Federal Reserve’s December policy meeting later this month.
Market Snapshot
At 7:40 a.m. ET, Dow e-minis were down 166 points, or 0.48%, Nasdaq 100 e-minis were down 54.5 points, or 0.45%, and S&P 500 e-minis were down 22 points, or 0.54%.
Pre-Market Movers
United Continental — Shares rose 1% after Morgan Stanley upgraded United Airlines to overweight from equal weight, saying 2023 could be a “goldilocks” year for the airline stock.
Starbucks — Shares fell 1.3% after Deutsche Bank downgraded Starbucks to hold from buy, saying further gains will be harder to come by after the stock’s recent outperformance.
Silvergate Capital — Shares dipped 3% after Morgan Stanley downgraded Silvergate Capital to underweight from equal weight, saying a “high level of uncertainty” remains around the stock following the FTX collapse.
Chinese tech stocks — Shares of Chinese internet stocks jumped in premarket trading after Beijing and Shenzhen reportedly further eased Covid restrictions. The Invesco Golden Dragon China ETF was up more than 5%. Shares of Bilibili surged 16%, while shares of Baidu and Pinduoduo were each up more than 5%. Alibaba rose more than 4%.
Johnson Controls — Johnson Controls shares rose slightly after Deutsche Bank named it its top pick heading into 2023. The firm said the HVAC stock helps investors defensively position in the event of a recession.
MGM Resorts International — MGM jumped more than 3% after Truist upgraded it to buy, saying shares of the casino operator can jump more than 30% on a strong 2023 Las Vegas Strip calendar.
Murphy — JPMorgan upgraded the stock to overweight from neutral in its 2023 exploration and production outlook, saying it’s one of the few operators in its coverage with conventional assets, such as oil sands, and a stable production profile. The stock rose by more than 2%.
Domino's Pizza — Domino’s rose 1% after BTIG upgraded the stock to buy from neutral, saying margins are set to rebound in 2023 because of higher menu pricing.
Market News
OPEC+ agreed to stick to its oil output targets at a meeting on Sunday as the oil markets struggle to assess the impact of Chinese demand and a G7 price cap on Russian oil supply.
Elon Musk said Apple has “fully resumed” advertising on Twitter, further de-escalating a brewing war between two of the world’s most influential tech companies. Musk made the comments during a Twitter Spaces conversation on Saturday, adding that Apple is the largest advertiser on the social media network.
Tesla Motors plans to cut December output of the Model Y at its Shanghai plant by more than 20% compared to November, two people with knowledge of the matter said on Monday.
As China’s reopening starts to take shape, investor focus is increasingly seen shifting from frenzied stock bets to longer-term plays such as consumer and health-care shares.
BYD Co., Ltd.'s Japanese division said on Monday it would start selling its first battery electric vehicles (BEVs) in the country early next year, as the world's largest EV maker further steps up its plan to either sell or make its cars available across major markets.
Johnson & Johnson unit Janssen Global Services said on Saturday that it does not intend to make an offer for biotech company Horizon Therapeutics Plc.
Investors including Saudi Arabia's crown prince and a U.S. private-equity firm run by a former Barclays CEO have shown interest in investing $1 billion or more in Credit Suisse Group AG's new investment banking unit.
United Continental is close to a deal to order dozens of Boeing Co. 787 Dreamliners, people familiar with the matter said. An agreement between the Chicago-based carrier and Boeing could be completed as soon as this month, some of these people said.