U.S. stock index futures were subdued on Tuesday, as investors tried to gauge the possibility of a tariff relief for the auto sector after President Donald Trump hinted at more exemptions.
Market Snapshot
At 8:00 a.m. ET, Dow e-minis were down 139 points, or 0.34%, S&P 500 E-minis were down 16.75 points, or 0.31%, and Nasdaq 100 E-minis were down 51.5 points, or 0.27%.
Pre-Market Movers
MP Materials, the largest rare-earths producer in the Western Hemisphere, was up 3% in premarket trading after soaring 22% on Monday after the Financial Times reported the Trump administration is drafting an executive order to stockpile metals and rare earths found on the Pacific Ocean seabed. USA Rare Earth up 11.7%; The Metals Company up 10%.
Boeing was down 3.33% after a Bloomberg report said China ordered its airlines not to take any further deliveries of the company's jets as part of trade war between Washington and Beijing.
Nvidia stock fell slightly. President Trump announced on Truth Social that all necessary permits will be expedited and promptly provided to Nvidia, as they will to all companies committing to be part of the Golden Age of America!
Tesla fell 0.3% to $251.70. The stock chart of the electric-vehicle maker on Monday formed a death cross, a trading term for when a shorter-term moving average crosses over a longer-term moving average. In this instance, the 50-day moving average moved below the 200-day moving average. A death cross often is a sign that a stock is losing momentum.
Netflix aims to achieve a $1 trillion market capitalization and double its revenue to $39 billion by 2030, according to The Wall Street Journal, which was told about the forecasts from people who attended the streaming company's annual business review meeting last month. Netflix also set a goal of tripling its operating income by 2030 from $10 billion last year, one of the people told the Journal. Netflix shares were rising 2.6% in premarket trading. The company is scheduled to report quarterly earnings on Thursday.
Bank of America posted first-quarter earnings of 90 cents a share, beating analysts' estimates of 82 cents a share. Revenue of $27.4 billion topped forecasts of $26.97 billion. Net interest income of $14.4 billion missed expectations of $14.9 billion. Shares of the second-largest U.S. bank by assets were rising 1.4%.
Healthcare giant Johnson & Johnson posted better-than-expected first-quarter earnings and revenue and boosted its full-year sales outlook to reflect the acquisition of drug developer Intra-Cellular Therapies. The company, which spans multiple sectors including pharmaceutical and biotechnology, reported growth across its innovative medicine and medtech segments during the quarter. The stock fell 0.9%.
Palantir Technologies rose 1.9% in premarket trading. The data-analytics company closed up 4.6% on Tuesday after the North Atlantic Treaty Organization said it would be using the company's artificial intelligence-enabled software to modernize its military capabilities. William Blair analyst Louie DiPalma said the agreement has "broader geopolitical significance than just another win for Palantir" amid Wall Street concerns that Europe wants to rely less on American defense contractors.
Shares of Apple were up 0.3% in the premarket session. The stock rose 2.2% on Monday following President Donald Trump's rollback of certain tariffs for the tech industry. Apple remains down almost 10% since the president's tariffs announcement on April 2.
Allegro MicroSystems was falling 12% to $19.36 after ON Semiconductor withdrew its proposal to acquire the chip maker for $35.10 a share. In a statement, ON Semiconductor said it determined there was "no actionable path forward." Allegro spurned ON Semiconductor's last proposal in early March that had an implied equity value of $6.9 billion. On Semi rose 0.5%.
Applied Digital, the digital infrastructure company, reported a fiscal third-quarter loss of 8 cents a share, narrower than analysts' estimates that called for a loss of 10 cents. Revenue jumped 22% to $52.9 million but missed expectations of $64.8 million. The stock fell 12% in premarket trading.
Market News
LVMH Overtaken by Hermes in Market Capitalization as Sales Disappoint
LVMH lost its position on Tuesday as Europe's largest luxury company in terms of market capitalization after being overtaken by rival Hermes due to investor pessimism after disappointing first-quarter revenue from the sector bellwether.
LVMH, whose high-end brands include Louis Vuitton and Dior, jewellery brand Tiffany & Co. and beauty chain Sephora, missed expectations for first-quarter sales as U.S. shoppers curbed purchases of beauty products and cognac while sales in China remained weak.
Global Electric Vehicle Sales up 29% in March, Researchers Find
Global sales of electric and plug-in hybrid vehicles rose 29% year-on-year in March, helped by growth in China and Europe, while EV growth in North America was hampered by U.S. President Donald Trump's stance towards emissions standards and uncertainties around tariffs, data showed on Tuesday.
U.S. tariffs on car imports may force some of the country's automakers which produce in neighbouring Mexico to readjust prices, or move their production, Rho Motion data manager Charles Lester said. About 39% of EVs sold in the U.S. are imported, and around a quarter of locally made EVs use imported batteries, he added.
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