Thomas White

Thomas White

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Banks & Finance
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A.I.
Technology
U.S. Economy
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Banks & Finance
Volatility
A.I.
Technology
U.S. Economy
Retail

U.S. Stock Futures Mixed After Wednesday Selloff

PUBLISHED  | 3 min read
Thomas White

Thomas White

Co-Host
SHARE

U.S. stock futures are mixed in premarket trading with the Nasdaq-100 (NDX) down sharply as concerns around tech companies overspending on artificial intelligence grew.

The moves come after a sell-off on Wednesday with the NDX down 2%. CoreWeave (CRWV) shares are down sharply this morning after falling over 15% on Wednesday. Investors are growing fearful that the company was borrowing too much for its AI build-out and its corporate bond yields surged. The weakness spread to other Neocloud stocks such as Oracle (ORCL) along with AI-linked stocks, particularly memory chipmakers such as Micron (MU), SK Hynix (SKHY) and Sandisk (SNDK).

Yields are under pressure today with the benchmark 10-year Treasury yield down 10 basis points near 5.09%. The slide in yields is surprising after hotter than expected CPI data on Wednesday as it showed consumer prices in September rose faster than expected.

Investor focus will be on economic data, including retail sales and the September PPI inflation data along with the sell-off in tech.

Snapshot

  • Oil (/CL): +0.25% to $95.34 per barrel
  • Gold (/GC): +1.64% to $4,173.20 per ounce
  • Bitcoin (/BTC): -0.79% to 81,175
  • VIX (/VIX): +2.85% to 17.33
  • U.S. Dollar ($DXY): -0.49% to 102.049

Big Premarket Movers

Advancers

  • Kimberly-Clark (KMB) +3.61%
  • Walmart (WMT) +2.96%
  • Philip Morris (PM) +2.06%
  • Lennar (LEN) +2.00%
  • Block (XYZ) +1.94%

Decliners

  • Western Digital (WDC) -5.25%
  • Seagate Technology (STX) -4.77%
  • Bloom Energy (BE) -4.70%
  • Vertiv (VRT) -4.41%
  • SanDisk (SNDK) -4.30%

Economic Data (ET)

  • 8:30 AM Retail Sales
  • 8:30 AM Jobless Claims
  • 8:30 AM PPI
  • 8:30 AM Philadelphia Fed Manufacturing Index
  • 8:30 AM Empire State Manufacturing Index
  • 10:00 AM Business Inventories
  • 10:30 AM EIA Natural Gas Inventories
  • 12:00 PM EIA Oil Inventories
  • 4:30 PM Fed Balance Sheet
  • 4:30 PM Fed's Hammack Speaks
  • 11:30 PM Fed's Warsh Speaks

Notable Earnings

  • Premarket: BNY, CMC, ERIC, FHN, MAN, MRSH, PLD, PNC, SCHW, TSM, USB
  • Postmarket: AA, IBKR, JBHT
  • Premarket Friday: CFG, MTB, RF, TFC, TRV
  • Postmarket Friday: N/A

Upgrades/Downgrades

Upgrades

  • Deutsche Bank upgrades Walmart (WMT) from Hold to Buy
  • Baird upgrades Bank of America (BAC) from Neutral to Outperform
  • UBS upgrades Regeneron (REGN) from Neutral to Buy
  • BofA upgrades CarMax (KMX) from Underperform to Buy
  • RBC Capital upgrades Casey's General Stores (CASY) from Sector Perform to Outperform
  • Barclays upgrades Crocs (CROX) from Equal Weight to Overweight
  • Morgan Stanley upgrades Quantinuum (QNT) from Equal Weight to Overweight
  • Baird upgrades Zions Bancorp (ZION) from Neutral to Outperform

Downgrades

  • StoneX downgrades Spotify (SPOT) from Buy to Hold
  • BofA downgrades PayPal (PYPL) from Neutral to Underperform
  • Goldman Sachs downgrades Albertsons (ACI) from Buy to Neutral
  • JPMorgan downgrades Albertsons (ACI) from Overweight to Neutral
  • KeyBanc downgrades Cirrus Logic (CRUS) from Overweight to Sector Weight
  • Baird downgrades Align Technology (ALGN) from Outperform to Neutral

For more on earnings season, read:

Featured Clips

Stock Market Today: CRWV & DELL Plunge, BAC Takes $1.2B Earnings Hit

The Wrap

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MU, ASML & TSM: AI Demand Remains Strong Despite the Selloff

Market On Close

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'We're Feeling Inflation Everywhere:' Why CPI Ignited Selloff, Ups Rate Hike Chances

The Watch List

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Andrew Plum Sees Stock Strength as Inflation Rises, Bull Case in Gold

Opening Bell With Nicole Petallides

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