S&P, Nasdaq Retreat Amid Inflation Woes, Eli Lilly Up 3.5%

Key Takeaway

• U.S. equities are set to pull back from all-time highs, with S&P 500, Nasdaq 100, and Dow Jones futures indicating declines amid inflation concerns.
• Notable pre-market movers include Eli Lilly (+3.5% on FDA panel recommendation), Cleveland-Cliffs (-3.2% on JPMorgan downgrade), and CoreCivic (-19% after suspending financial guidance).

Pre-market Top Moves

As of 8:38 a.m. in New York, U.S. equities are set to pull back from their all-time highs. Investors are balancing optimism about corporate earnings against concerns that persistent inflation could delay the anticipated interest-rate cuts.

• S&P 500 Futures: Indicating a potential retreat from record highs.
• Nasdaq 100 Futures: Reflecting mixed sentiment in the tech sector.
• Dow Jones Industrial Average Futures: Poised for a slight decline.

Highlights by Sector

Technology

Apple (AAPL) shares are down 0.3% premarket, extending losses for a second consecutive session. The tech giant introduced new AI features, but analysts noted no major surprises, though an upcoming iPhone upgrade cycle was flagged.

Industrial

Cleveland-Cliffs (CLF) shares slipped 3.2% after JPMorgan downgraded the steel producer to neutral from overweight. This move reflects concerns over the company's future performance amid fluctuating steel prices.

Communications

Comcast (CMCSA) shares fell 1.3% after BNP Paribas Exane downgraded the stock to underperform from neutral. Conversely, AT&T received a rating upgrade, highlighting mixed sentiment within the communications sector.

Healthcare

Eli Lilly & Co (LLY) shares advanced 3.5% following an FDA advisory panel's recommendation for the approval of its Alzheimer's drug. This positive development boosts investor confidence in the company's pipeline.

Consumer Discretionary

Shopify (SHOP) shares rose 0.7% after JPMorgan initiated coverage with an overweight recommendation, indicating strong growth potential for the Canadian e-commerce company.

Notable Gains and Losses

• CoreCivic Inc. (CXW): Shares tumbled 19% after the company suspended its financial guidance for 2024. This follows a notification from US Immigration and Customs Enforcement about the termination of their services agreement for the South Texas Family Residential Center.
• Yext Inc. (YEXT): Shares are down 14% after the digital-media technology company issued a weaker-than-expected second-quarter outlook and cut its full-year revenue forecast.
• ZEEKR Intelligent Technology (ZK): US-listed shares rose 8.6% after the Chinese electric-vehicle maker reported year-over-year increases in sales and margins.

Key Movers & Takeaway

The pre-market session is characterized by a cautious tone as investors weigh corporate earnings against inflation concerns. Notable downgrades in industrial and communications sectors reflect sector-specific challenges, while positive developments in healthcare and consumer discretionary sectors highlight areas of growth.

Key Movers Table by Market Cap

LargeCap Movers (>$20B)

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

SmallCap Movers ($50M-$5B)

Top Overbought/Oversold by 14-Day RSI

Overbought Stocks

Oversold Stocks

In summary, the pre-market session is marked by cautious sentiment as investors navigate mixed corporate earnings and inflation concerns. Key movers in various sectors provide insights into market dynamics, with notable gains in healthcare and consumer discretionary, and significant losses in industrial and communications sectors.