Wall Street rises as materials and crypto stocks offset continued bond sell-off
Investing.com - U.S. stock futures were mixed on Monday, with technology stocks pointing to a firmer open, as investors scaled back bets on an impending Federal Reserve rate hike and looked ahead to a fresh batch of retail-sector earnings this week.
By 06:27 ET (10:27 GMT), Dow futures had slipped 99 points, or 0.2%, while S&P 500 futures had risen 8 points, or 0.1%, and Nasdaq 100 futures had climbed 139 points, or 0.5%.
Investors were also digesting a series of company-specific catalysts in premarket trading, with upgrades helping lift some technology stocks while legal and valuation concerns weighed on others.
Here are some of the biggest premarket U.S. stock movers today:
Mobileye stock rose 3.9% before the bell after Berenberg upgraded the autonomous-driving technology company to Buy from Hold and raised its price target to $11 from $10.80.
The bank argued that a recent selloff following CEO Amnon Shashua’s resignation had pushed the shares below their fair value. Berenberg pointed to Mobileye’s second-quarter results, which included revenue of $508 million, about 5% above consensus, and adjusted EBIT of $155 million, far exceeding analysts’ expectations of $41 million.
SanDisk shares jumped 5.1% in premarket trading, extending a rally sparked by the company’s Aug. 13 investor day.
Management laid out a long-term financial framework targeting mid-to-high-teens annual revenue growth, gross margins of about 80% and adjusted free cash flow margins of roughly 50% for fiscal 2028 through 2030.
The company also said it intends to return 100% of excess cash to shareholders once the business is fully funded, adding to the bullish investor response.
Snap shares fell 12.4% before the bell to $4.74, pressured by mounting legal concerns following a landmark ruling involving social media addiction liability.
The Aug. 10 decision by the 9th U.S. Circuit Court of Appeals denied Snap and other social media companies the Section 230 immunity they had sought, allowing thousands of lawsuits brought by states, municipalities, school districts and families to proceed.
SentinelOne fell 2.9% after Deutsche Bank downgraded the cybersecurity company to Hold from Buy, although it raised its price target to $24 from $17.
The downgrade came after a sharp run-up in the shares, which had gained about 18% over the previous month and recently touched a 52-week high of $23.95. Deutsche Bank said the improved price target reflected the stock’s gains but that the risk-reward balance had become more even.
Mercury Systems climbed 11.6% to $124 ahead of its fiscal fourth-quarter and full-year results, due after Monday’s close.
Investor optimism has been building after the aerospace and defense technology company reported $235.8 million in revenue in its previous quarter, an 11.5% year-over-year increase, while beating expectations for both earnings and EBITDA.
Analyst EPS estimates for the upcoming results have risen about 10% over the past 30 days, suggesting expectations have become more constructive.
SUI Group Holdings rose 10.2%, extending a rebound from near its 52-week low. The digital-asset treasury company reported in its second-quarter results that its SUI token holdings had reached about 109 million tokens in early August, with much of the treasury staked and generating an estimated annual yield of about 1.7%.
Meanwhile, investors were preparing for a busy week of retail earnings, with results from major consumer companies expected to provide fresh clues on the strength of U.S. household spending and the impact of still-elevated prices and borrowing costs.
