Premarket Stock News: Key Developments to Watch
Futures Hover Around Flatline
U.S. stock futures remained near the flatline on Tuesday as investors awaited key economic data and Federal Reserve comments that could shape expectations for interest rate cuts later in the year. On Monday, the Nasdaq Composite saw its fifth consecutive record close, driven by bullish sentiment from Goldman Sachs and Evercore ISI raising their year-end targets for the S&P 500.
In individual stocks, Apple extended its rally, bolstered by new AI-enhanced features announced at its annual developers conference. Meanwhile, the Philadelphia Semiconductor Index hit an all-time high, with notable gains from Taiwan Semiconductor Manufacturing Company (up 5.4%) and Micron, following brokerage upgrades.
U.S. Retail Sales and Fed Commentary
This week’s spotlight is on U.S. retail sales data for May, due out on Tuesday. Economists forecast a 0.3% month-on-month increase, an improvement from April’s stagnant growth. Despite high inflation and interest rates, consumer spending has remained robust, supported by a strong labor market. Insights from this data could influence the Federal Reserve’s approach to potential interest rate reductions.
Several Federal Reserve officials, including New York Fed President John Williams and San Francisco Fed President Mary Daly, will provide comments throughout the week. On Monday, Philadelphia Fed President Patrick Harker suggested a 25-basis point rate cut in 2024, aligning with the median forecast from policymakers.
Tesla’s Legal Battle Over Musk’s Pay Package
Tesla has begun its legal fight to reinstate CEO Elon Musk’s $56 billion pay package after shareholders approved the compensation agreement. A Delaware judge had previously voided the deal, questioning the board’s independence. Despite the shareholder vote, legal experts suggest the decision might not impact the ongoing case.
Apple Scraps “Buy Now, Pay Later” Service
Apple has ended its “buy now, pay later” (BNPL) service in the U.S., focusing instead on third-party installment loans. The company will continue to support existing BNPL loans through its Wallet app. This move comes as Apple shifts its strategy in the financial services sector.
Oil Prices Dip
Oil prices edged lower on Tuesday, giving back some of the previous session’s gains. Concerns about global demand persist, particularly with China’s economic recovery faltering and high interest rates potentially weighing on U.S. crude demand.
$GLW- Mizuho analyst John Roberts raised the firm’s price target on Corning to $42 from $36 and keeps a Neutral rating on the shares after Corning recently hosted an R&D tour as well as meetings with the CEO, CFO and finance team to detail “Springboard,” Corning’s plan to increase sales by $3B in 2026 relative to annualized December-end quarter of 2023. Citing a better understanding of the new product opportunities, the firm applies a higher multiple relative to the five-year median.
$AAPL- Apple is set to conclude a long-running EU antitrust investigation into its mobile payments system and avoid a huge fine by making a series of concessions to allow rivals greater access to its contactless “tap-and-go” near-field communication, or NFC, technology system for payments, according to Financial Times’ Javier Espinoza, citing three people familiar with the matter. Sources said regulators had accepted a number of measures that Apple had committed to in January this year, the report noted.
The Apple Watch Series 10 will be thinner and have a bigger screen, from 41mm to 45mm and 45mm to 49mm, according to Apple analyst Ming-Chi Kuo in a note shared on Medium. Apple will also start using 3D printing technology to manufacture Apple Watch components later this year, following extensive testing which has significantly improved the production efficiency, Kuo says.
JPMorgan analyst Samik Chatterjee raised the firm’s price target on Apple to $245 from $225 and keeps an Overweight rating on the shares. Following the WWDC event, which laid out a collection of AI features that the firm believes will drive an upgrade cycle that starts with the iPhone 16 launch, JPMorgan is updating its volume forecasts for the iPhone 16 and iPhone 17 cycle. The firm is raising its iPhone volume expectations to 250M units in calendar year 2025, or 244M in FY25, and to 275M in calendar year 2026, or 268M in FY26, the analyst tells investors.
$NFLX- Loop Capital raised the firm’s price target on Netflix to $750 from $700 and keeps a Buy rating on the shares. The analyst sees “accelerating demise” of traditional TV companies benefiting Netflix as its viewership trends continue to be positive. Loop is also anticipating a price increase this year, particularly on the Standard Tier, ahead of Netflix streaming the Christmas NFL games, further noting that the stock has recouped its losses from the announcement that it will no longer provide quarterly subscriber data after this year, the analyst tells investors in a research note.
$BA- A Boeing quality inspector is alleging the company lost track of and mishandled “hundreds” of faulty parts, some of which may have been installed on new 737 Max planes, Bloomberg’s Allyson Versprille and Julie Johnsson report. The claims were detailed in a June 11 complaint by Boeing inspector Sam Mohawk with the Occupational Safety and Health Administration and were made public by a US Senate subcommittee on Tuesday in a memo to members. Mohawk also claims that Boeing “intentionally hid” improperly stored non-conforming parts from the FAA ahead of an on-site inspection, according to the report. As of last year, Boeing had lost as many as 400 faulty 737 Max aircraft parts and deleted records for many of those from an internal cataloging system, according to the complaint. Boeing said it is reviewing the claims after receiving the document late on Monday.
$NVDA- Rosenblatt raised the firm’s price target on Nvidia to $200 from $140 and keeps a Buy rating on the shares. The firm sees Nvidia’s Hopper, Blackwell, and Rubin series driving “value” market share in what it calls “one of Silicon Valley’s most successful silicon/platform product cycles,” adding that “the real narrative lies in the software that complements all the hardware goodness.” The firm, which said it sees Nvidia “already in the $5.00 EPS plus level for calendar 2026,” is also updating its model to account for the company’s recent 10-for-one share split that was completed on June 10.
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Stay tuned for further updates and detailed analysis as these developments unfold.
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