Keep An Eye Out: Pre-Market Movers And Recommendations
- Adobe (NASDAQ:ADBE): Barclays maintains its equalweight rating
with a target price raised from $540 to $620.
- Docusign (NASDAQ:DOCU): Morgan Stanley maintains its
underweight recommendation with a target price increase from $49 to
- Edwards Life (NYSE:EW): Piper Sandler & Co maintains a
neutral recommendation on the stock with a reduced target price of
- Fedex Corp (NYSE:FDX): Morgan Stanley maintains its
equalwt/in-line rating with a target price increase from $186 to
- Johnson & Johnson (NYSE:JNJ): Barclays maintains its
equalweight rating with a reduced target price of $158.
- Lucid Group (NASDAQ:LCID): RBC Capital maintains its sector
perform rating on the stock with a target price of $6.
- Nucor Corp (NYSE:NUE): JP Morgan downgrades to underweight
from neutral. PT up 0.7% to $151.
- Paypal Holdings (NASDAQ:PYPL): Jefferies maintains a hold
recommendation on the stock with a reduced target price of
- Roblox Corp (NYSE:RBLX): CITIC Securities Co Ltd upgrades
to add from hold. PT reduced from $57 to $37.
- Steel Dynamics (NASDAQ:STLD): JP Morgan downgrades to
underweight from neutral. PT up 1.1% to $95.
- T-mobile (NASDAQ:TMUS): DZ Bank AG Research maintains its buy
recommendation with a raised target price from $170 to $175.
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The mood on Wall Street appears somber, partly due to weakening
economic data in China and Europe, as well as indications of
persistent inflation in the United States. Surprisingly, the U.S.
services sector outperformed expectations in August, contradicting
the notion of a cooling U.S. economy and inflation, thus bolstering
the case for an extended period of higher interest rate hikes.
Additionally, lower-than-expected jobless claims added to the
concern, suggesting a tightly competitive job market. Even Apple, a
cornerstone of the NYSE, is encountering difficulties.
In the previous day, market indices experienced significant
fluctuations. In short, markets with a substantial presence of
defensive stocks performed relatively well, while those heavily
invested in technology and cyclical stocks faced some setbacks. For
instance, the Swiss SMI, led by its three major defensive stocks –
Nestlé, Roche, and Novartis – gained 0.6%, while Apple struggled,
dragging the Nasdaq down by 0.7%.
The challenges faced by Apple, the creator of the iPhone, are
particularly untimely for the tech sector, which is already
grappling with concerns about its ability to maintain high
valuation multiples. Today, it was reported that restrictions on
the use of iPhones by government employees in China have expanded
to local governments, as reported by the Nikkei. Apple’s stock has
declined by 6.4% over two trading sessions, resulting in a nearly
$200 billion reduction in market capitalization, equivalent to
erasing a company like Netflix from the market. Given that Apple
and its peers, including Nvidia, Microsoft, Amazon, and Meta, have
contributed to roughly 60% of Nasdaq’s gains this year, any setback
affecting this group has a magnified impact on the tech index. In
contrast, the Dow Jones saw a marginal increase yesterday, thanks
to its substantial healthcare stock holdings.
To sum up the concerns for September, inflation and high
interest rates top the list, followed by the state of the Chinese
economy and geopolitical tensions causing distortions in various
markets, including energy and agricultural commodities. On the
positive side, there is optimism surrounding corporate earnings
strength, the resilience of the U.S. economy, and promising
developments in artificial intelligence.
The energy market could experience renewed tensions, given
apparent breakdowns in negotiations between Chevron’s Australian
LNG division and its employees. Social unrest in the sector is
affecting gas supplies to Europe, consequently impacting prices.
Meanwhile, the offshore yuan in China has reached its lowest point
against the U.S. dollar in its 13-year history. Observers suggest
that Beijing may be comfortable with this depreciation as it
bolsters the export competitiveness of a nation eager to revitalize
its economic momentum.
In premarket trading, all three major Wall Street indices were
Key economic highlights for the day include U.S. wholesale
Currency exchange rates stand at USD 0.9341 and GBP 0.8007,
while the price of gold hovers around USD 1924 per ounce. North Sea
Brent oil is priced at USD 90.62 per barrel, and U.S. light crude
WTI is at USD 87.05. The yield on 10-year U.S. government debt has
eased to 4.22%, and Bitcoin remains around USD 26,000.
In corporate news:
- Tesla: Passenger car sales in China rebounded with year-on-year
growth in August, driven by price reductions and subsidies. Tesla,
in particular, nearly doubled its market share in August compared
to July, according to data from the China Passenger Car
- Nvidia and Reliance announced a partnership to develop
artificial intelligence (AI) language models and generative
applications for millions of users within the Indian telecom
- Gamestop experienced a 2.9% decline in pre-market trading
following reports that its chairman, billionaire Ryan Cohen, is
being investigated by the U.S. Securities and Exchange Commission
(SEC) over the surprise purchase and sale of shares in Bled Bath
- Smith & Wesson Brands saw a 12.08% increase in pre-market
trading after reporting higher quarterly earnings that exceeded
- DocuSign shares gained 2.7% in premarket trading following the
company’s better-than-expected quarterly results and an upward
revision of its full-year sales forecast.
Friday’s Wall Street Highlights: Apple, Goldman Sachs, Morgan
Stanley, DocuSign, and more
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