"AMD Slips 2%, S&P 500 Newcomers Surge Over 3%"

Key Takeaway

• AMD drops 2% after Morgan Stanley downgrade, while CrowdStrike, GoDaddy, and KKR rise over 3% as they join the S&P 500 Index.
• GameStop gains 7%, Southwest Airlines jumps 8% on Elliott's $2 billion stake, and Perion plummets 22% after cutting revenue guidance.

Pre-market Top Moves

As of 7:36 a.m. in New York, U.S. equity futures are showing minimal movement as investors await key inflation data and a Federal Reserve meeting later this week.

• S&P 500 futures: Little changed, indicating a cautious market sentiment ahead of significant economic events.
• Nasdaq 100 futures: Little changed, reflecting a steady outlook for tech-heavy stocks.
• Dow Jones Industrial Average futures: Down 0.1%, suggesting slight bearish sentiment.
• MSCI World Index: Down 0.1%, mirroring global market caution.

Tech Sector Highlights

Advanced Micro Devices (AMD) is down 2% after Morgan Stanley downgraded the chipmaker to equal-weight, citing overly high investor expectations for its AI business. Conversely, CrowdStrike (CRWD), GoDaddy (GDDY), and KKR (KKR) are all up more than 3% as they are set to join the S&P 500 Index in the latest quarterly weighting change.

Energy and Industrials

Diamond Offshore (DO) rises 6% after agreeing to be purchased by Noble Corp. This acquisition is seen as a strategic move to consolidate the offshore drilling market.

Retail and Consumer Goods

GameStop (GME) gains 7%, aiming to recover some of Friday’s 39% losses. The stock had tumbled after the unexpected release of earnings and the return of Keith Gill to YouTube. Southwest Airlines (LUV) jumps 8% following a Wall Street Journal report that Elliott Investment Management has built an almost $2 billion stake in the airline.

Biotech and Healthcare

ProKidney (PROK) rises 5% after announcing interim results of its REGEN-007 Phase 2 trial, which showed stabilization of kidney function for 18 months.

Notable Gains and Losses

Perion (PERI) drops 22% after the company cut its revenue guidance for the second quarter, signaling potential challenges ahead.

Key Movers & Takeaway

The pre-market session is characterized by cautious trading as investors await critical economic data. Notable movements include AMD's decline due to a downgrade, significant gains in stocks joining the S&P 500, and a sharp drop in Perion following a revenue guidance cut. The market's focus remains on upcoming inflation data and the Federal Reserve meeting, which are likely to set the tone for the week.

Key Movers Table by Market Cap

LargeCap Movers (>$20B)

Mid-Cap Movers ($5B-$20B)

SmallCap Movers (<$5B)

Top Overbought/Oversold by 14-Day RSI

Overbought Stocks

Oversold Stocks