Top Movers

Rate Cut Hopes Push U.S. Futures to Record Highs

Pre-Market

By Bill Bullington

7/11, 08:49 EDT
Alcoa Corporation
Albemarle Corporation
Costco Wholesale Corporation
Delta Air Lines, Inc.
E2open Parent Holdings, Inc.
PepsiCo, Inc.
Pfizer, Inc.
QuantumScape Corporation
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Pre-market Top Moves

As of 8:43 a.m. in New York, U.S. stock futures are on the rise, buoyed by the latest inflation data which has fueled speculation that the Federal Reserve may cut rates this year. This optimism is reflected across major indices, with the S&P 500, Nasdaq 100, and Dow Jones Industrial Average futures all hitting record highs.

  • S&P 500 futures: Up 0.3%, reaching a record high.
  • Nasdaq 100 futures: Up 0.4%, also at a record high.
  • Dow Jones Industrial Average futures: Up 0.2%.
  • MSCI World Index: Up 0.4%, hitting a record high.

Highlights by Sector

Airlines

Delta Air Lines (DAL) is experiencing a significant drop of 8.3% after issuing a third-quarter adjusted earnings forecast that missed consensus expectations. This has had a ripple effect on the broader airline sector.

Chemicals

Albemarle (ALB) shares are down 1.8% following a downgrade to equal-weight by Wells Fargo in a second-quarter preview for the chemicals sector.

Metals & Mining

Alcoa (AA) is up 4.5% after reporting preliminary adjusted EBITDA for the second quarter that exceeded estimates, providing a positive outlook for the metals and mining sector.

Retail

Costco (COST) shares have risen 2.2% after announcing plans to increase annual membership fees for the first time since 2017. Jefferies noted this as a positive catalyst, and the company's U.S. comparable sales, excluding fuel and currencies, surpassed consensus estimates.

Consumer Goods

PepsiCo (PEP) is down 2.4% after reporting weaker-than-expected revenue for the second quarter and tempering its full-year outlook. Bernstein analysts noted this as an "abrupt end to the strong period of growth enjoyed during the Covid-19 era."

Pharmaceuticals

Pfizer (PFE) shares have climbed 6.5% after announcing advancements in the development of its once-daily weight-loss pill, danuglipron.

Technology

QuantumScape Corp. (QS) has surged 34% after entering into a pact with Volkswagen Group’s battery company PowerCo to industrialize its solid-state lithium-metal battery technology.

Notable Gains and Losses

  • E2open (ETWO): Down 12% after reporting first-quarter results that missed expectations.
  • Delta Air Lines (DAL): Down 8.3% due to a disappointing third-quarter earnings forecast.
  • Alcoa (AA): Up 4.5% on better-than-expected preliminary adjusted EBITDA for Q2.
  • Costco (COST): Up 2.2% following the announcement of a membership fee increase.
  • PepsiCo (PEP): Down 2.4% after weaker-than-expected Q2 revenue and a tempered full-year outlook.
  • Pfizer (PFE): Up 6.5% on advancements in its weight-loss pill development.
  • QuantumScape Corp. (QS): Up 34% after a strategic pact with Volkswagen Group’s PowerCo.

Key Movers & Takeaway

The pre-market session is characterized by optimism driven by favorable inflation data, which has led to speculation about potential rate cuts by the Federal Reserve. This has lifted major indices to record highs. However, individual stock movements are mixed, with significant gains in the technology and pharmaceutical sectors, while consumer goods and airlines face headwinds.

Key Movers Table by Market Cap

LargeCap Movers (>$20B)

Stock Ticker Price Change Key Takeaway
Pfizer PFE +6.5% Advancing development of once-daily weight-loss pill
Costco COST +2.2% Announced membership fee increase, positive sales data
PepsiCo PEP -2.4% Weaker-than-expected Q2 revenue, tempered full-year outlook
Delta Air Lines DAL -8.3% Disappointing Q3 earnings forecast

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

Stock Ticker Price Change Key Takeaway
Alcoa AA +4.5% Preliminary adjusted EBITDA for Q2 exceeded estimates
Albemarle ALB -1.8% Downgraded to equal-weight by Wells Fargo

SmallCap Movers ($50M-$5B)

Stock Ticker Price Change Key Takeaway
QuantumScape QS +34% Pact with Volkswagen Group’s PowerCo to industrialize battery tech
E2open ETWO -12% Missed Q1 expectations

Top Overbought/Oversold by 14-Day RSI

Overbought Stocks

Stock Ticker RSI
QuantumScape Corp. QS 95.0
Pfizer PFE 90.2
Alcoa AA 88.7

Oversold Stocks

Stock Ticker RSI
Delta Air Lines DAL 10.5
E2open ETWO 15.8
Albemarle ALB 18.3

The pre-market session is setting the stage for an eventful trading day, with significant movements across various sectors driven by earnings reports, strategic partnerships, and macroeconomic data. Investors should keep an eye on these key movers as the market opens.