CapEx Surge Rolls On for the Magnificent Seven
U.S. stock futures are slightly higher in premarket trading as traders assess big tech earnings and comments from Fed Chair Powell. Alphabet (GOOGL) shares are up 6% to all-time highs after beating on Revenue and positive Cloud Revenue.
Amazon (AMZN) shares are modestly higher after their earnings beat amid expanding Cloud growth. Both Meta Platforms (META) and Microsoft (MSFT) shares are under pressure after their results.
The Fed kept interest rates at 3.5-3.75% yesterday afternoon and the Fed Chair said in his commentary he would stay as a Governor on until the IG investigation has ended. Investor focus will be on earnings fallout, economic data and geopolitical headlines in the Middle East.
Snapshot (as of 7 AM ET)
- Oil (/CL) – Oil prices are down over1% near $105 a barrel after a report that the U.S. military would brief President Donald Trump on potential action against Iran. Axios reported that the U.S. Central Command was set to present Trump plans for a possible military action against Iran, citing two sources with knowledge of the matter. Trump had earlier reportedly rejected Tehran’s proposal to reopen the Strait of Hormuz, signaling the naval blockade will remain in place until a broader nuclear agreement is reached.
- Gold (/GC) –Gold prices are up 1.75% near $4640 as a lower Dollar and stabilized Yields have lifted support for the precious metal.
- Bitcoin (/BTC) – The Crypto Future is up 1% near 76,500 in premarket trading.
- VIX – The CBOE Volatility Index was up 5.5% on Wednesday and settled at 18.81 as stocks were mixed.
- U.S. Dollar (/DX): The greenback is moving lower on the session, trading around 98.43.
Biggest Premarket Movers (as of 7 AM ET)
QUALCOMM INC (QCOM): +9.78%
QUANTA SERVICES (PWR): +6.59%
CARVANA (CVNA): +8.68%
ALPHABET (GOOG): +7.92%
CATERPILLAR (CAT): +6.61%
WILLIS TOWERS WATSON (WTW): -9.69%
META PLATFORMS (META): -9.09%
SMURFIT WESTROCK PLC (SW): -6.45%
INTERNATIONAL PAPER (IP): -5.90%
KLA CORP (KLAC): -4.80%
Economic Data
8:30 AM ET: GDP, Personal Income & Outlays, Jobless Claims, Employment Cost Index
9:45 AM ET: Chicago PMI
10:00 AM ET: Leading Economic Indicators
10:30 AM ET: FOMC Announcement
2:30 PM ET: Natural Gas Inventories
Notable Earnings
Premarket: AOS, ADT, APD, MO, ATI, BAX, OWL, BMY, BC, BLDR, CAH, CARR, CAT, CHKP, CI, CNH, COP, CROX, DTE, LLY, FTV, GIL, GPI, HSY, HUBB, H, ITW, ICE, IRM, JLL, LHX, MLM, MA, MRK, TAP, PH, RCL, SIRI, SAH, SO, STLA, THC, TT, TXT, VLO, W, WTW, XRX, XPO
Postmarket: AEM, ALGT, AIG, AMGN, AAPL, AJG, TEAM, CLX, CNO, EMN, FSLR, FND, GDDY, HUN, ILMN, MTZ, MHK, RDDT, RIOT, RIVN, RBLX, ROKU, SNDK, SNDR, SYK, TWLO, WDC, WY, ZETA
Premarket Tomorrow: AON, AN, BEP, CBOE, CVX, CHD, CNK, CL, D, EL, XOM, LEA, LIN, LYB, MRNA, NWL, TEX
Postmarket Tomorrow: N/A
Upgrades/Downgrades
- Summit Insights upgrades Qualcomm (QCOM) to Buy from Hold
- BofA upgrades AbbVie (ABBV) to Buy from Neutral
- Vertical Research upgrades Lennox (LII) to Buy from Hold
- JPMorgan downgrades Meta Platforms (META) to Neutral from Overweight
- Goldman Sachs downgrades GE HealthCare (GEHC) to Neutral from Buy
- Goldman Sachs downgrades Wingstop (WING) to Neutral from Buy
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