S&P 500 futures increased by 4 points, Nasdaq 100 futures rose by 80 points, and Dow Jones Industrial Average futures decreased by 185 points.
S&P 500 and Nasdaq 100 futures are on the rise, while Dow futures are dropping due to a decline in UnitedHealth (UNH, Financial) shares. The drop in UnitedHealth is linked to news of a Department of Justice civil investigation into Medicare Advantage billing practices.
Today's economic reports include the February S&P Global U.S. Manufacturing PMI and Services PMI at 9:45 ET, along with January Existing Home Sales and the final February University of Michigan Consumer Sentiment survey at 10:00 ET.
The 10-year yield is down slightly to 4.49%, and the 2-year yield is also down to 4.26%.
UnitedHealth Group (UNH, Financial) faced a significant premarket downturn, with shares dropping approximately 7% following news of a U.S. Department of Justice investigation. The probe, which involves the Office of Inspector General at the Department of Health and Human Services, focuses on potential civil fraud regarding Medicare Advantage plans. UnitedHealth has been under scrutiny for allegedly adding questionable diagnoses to medical records to secure additional payments. This investigation adds to previous antitrust concerns raised earlier this year.
Amazon (AMZN, Financial) has achieved a milestone by surpassing Walmart (WMT, Financial) in quarterly sales for the first time. Amazon reported fourth-quarter revenue of $187.79 billion, outpacing Walmart's $180.55 billion. Despite this, Walmart is projected to lead in annual sales, with expected revenue of $703.02 billion for the fiscal year. Amazon's growth is driven by its core retail business and the expansion of AWS and online advertising, while Walmart continues to enhance its omnichannel strategy.
Rivian Automotive (RIVN, Financial) announced a recall of 17,260 vehicles due to a headlight issue affecting visibility. The recall impacts certain 2025 R1T and R1S models with incorrectly configured headlamps, particularly in cold temperatures. Rivian's shares decreased by about 6% in premarket trading as the company plans to replace the faulty headlight control modules at no cost to the owners.
Snowflake (SNOW, Financial) received positive attention as TD Cowen highlighted constructive partner checks ahead of its upcoming fourth-quarter results. Analysts anticipate solid performance, noting stability in core SQL workloads and growth in new products like Cortex AI Search. The firm reiterated a Buy rating and increased the price target to $210, expecting continued growth into fiscal 2026.
China's tech sector experienced a rally, driven by strong earnings and optimism around AI technologies. The Hang Seng Tech Index saw significant gains, with companies like Alibaba (BABA, Financial) surpassing Q3 estimates. Lenovo and Xiaomi also contributed to the index's performance, benefiting from advancements in AI, highlighted by the release of DeepSeek-R1, a new open-source AI model.
bluebird bio (BLUE, Financial) saw a drastic 37% drop in premarket trading after announcing its intention to go private through an acquisition by Carlyle Group (CG, Financial) and SK Capital Partners. The deal offers stockholders $3.00 per share in cash, with potential additional payments contingent on future sales. The move aims to enhance the commercial reach of bluebird's gene therapies.
ESPN and Major League Baseball will end their broadcast partnership after the 2025 season. The decision follows MLB's dissatisfaction with ESPN's reduced baseball coverage and the pursuit of lower rights fees. ESPN remains open to a new deal, competing with Apple (AAPL) and Roku (ROKU) for baseball broadcasting rights.
MercadoLibre (MELI, Financial) shares surged 12% following robust Q4 results that exceeded expectations in several key metrics. The company reported a 37.4% year-over-year increase in total sales, driven by a rise in payment volume and gross merchandise volume. Brazil, its largest market, contributed significantly to the revenue growth.
Nissan (OTCPK:NSANY) is exploring strategic alliances after halted merger talks with Honda (HMC). A proposal suggests Tesla (TSLA) invest in Nissan, potentially acquiring U.S. manufacturing plants. This comes amid financial challenges for Nissan, which saw its stock rise by about 10% following the news.
Arbor Realty Trust (ABR, Financial) declared a quarterly dividend of $0.43 per share, maintaining its previous payout, despite missing earnings expectations. The company reported Q4 revenue of $82.87 million, a 20% year-over-year decline, highlighting ongoing financial challenges.
Prologis (PLD, Financial) announced a 5.2% increase in its quarterly dividend to $1.01 per share, reflecting its commitment to providing shareholder value. The company continues to perform well, with solid Q4 earnings results, despite facing rising vacancies and dropping estimates in some areas.
OpenAI, backed by Microsoft (MSFT), expanded its AI agent Operator to several countries, excluding the EU and a few others. Operator automates web-based tasks and is available to subscribers of the ChatGPT Pro plan, showcasing OpenAI's competitive edge in AI technology.
Akamai Technologies (AKAM) shares fell 10% amid concerns over its quarterly results and guidance. Analysts downgraded the stock, citing a transition year as the company shifts focus from slower growth areas to high-growth segments like API security and Cloud Infrastructure Services.
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