The S&P 500 futures are currently down 15 points, reflecting a 0.3% decrease. Nasdaq 100 futures have dropped by 83 points, equating to a 0.5% decrease. Meanwhile, Dow Jones Industrial Average futures are down 66 points, showing a 0.2% decrease.
This morning, there's a negative sentiment in the market as investors await the February Producer Price Index (PPI) report due at 8:30 ET.
Negative reactions to earnings reports from Adobe (ADBE, Financial), UiPath (PATH, Financial), SentinelOne (S, Financial), and American Eagle (AEO, Financial) are adding to this downward trend.
Concerns about U.S. trade policy and possible retaliations from Canada or the EU are also affecting market sentiment.
The 10-year Treasury yield has risen by one basis point to 4.33%, and the 2-year Treasury yield is up by one basis point to 4.00%.
President Donald Trump has threatened a 200% tariff on all alcoholic beverages imported from the European Union, escalating the ongoing trade war. This follows the EU's announcement of countermeasures to the U.S.'s 25% tariffs on steel and aluminum, including a 50% tariff on American whisky. Trump's statement on Truth Social, owned by Trump Media & Technology Group (DJT, Financial), highlighted the EU's actions as hostile, potentially impacting various sectors, including the beverage industry.
The U.S. Producer Price Index (PPI) unexpectedly fell by 0.1% month-over-month in February, missing the consensus of a 0.3% increase. This decline indicates a softer inflationary environment, with the year-over-year rise at 3.4%, slightly below expectations. Stripping out food and energy costs, the core PPI remained flat, underscoring a potential easing of inflationary pressures on the economy.
Intel (INTC, Financial) saw a significant rise in its stock, climbing 11% in premarket trading, following the appointment of Lip-Bu Tan as CEO. The move was well-received by analysts, considering Tan's successful tenure at Cadence Design Systems (CDNS, Financial). However, challenges remain for Intel, as analysts maintain a cautious outlook amidst the company's ongoing strategic shifts.
UiPath (PATH, Financial) experienced a 17.5% drop in premarket trading after Bank of America downgraded the stock due to weaker-than-expected fiscal 2026 guidance. The downgrade was attributed to macroeconomic pressures affecting the company's Federal vertical, raising concerns about broader impacts on the automation software sector.
Archer Aviation (ACHR, Financial) announced a partnership with Palantir Technologies (PLTR, Financial) to develop AI-driven aviation technologies. The collaboration aims to enhance Archer's manufacturing capabilities and advance next-gen software solutions, potentially transforming the aviation industry through improved efficiency and safety.
D-Wave Quantum (QBTS, Financial) reported a 5.7% increase in premarket stock trading, driven by expectations of significant revenue growth. The company announced achieving "quantum computational supremacy" and anticipates first-quarter fiscal 2025 revenue to surpass Wall Street estimates, highlighting robust growth in its bookings.
Microsoft (MSFT, Financial) received an upgrade to a BUY rating from D.A. Davidson, with an increased price target of $450. The upgrade reflects Microsoft's strategic shift in capital expenditure and its position as a leading tech player amidst a slowing consumer market. The brokerage noted Microsoft's reduced capex for AI training, signaling a more rational investment approach.
Taiwan Semiconductor Manufacturing (TSM, Financial) faced substantial sell-offs by foreign investors, resulting in a significant drop in its stock. This reaction stems from uncertainties surrounding U.S. trade policies, including potential tariffs on imported chips, affecting the broader semiconductor industry.
Spirit Airlines (OTC:SAVEQ) emerged from bankruptcy with reduced debt and increased financial flexibility. The restructuring involved converting debt into equity and receiving new investments, positioning the airline to enhance its offerings and return to profitability. Spirit plans to re-list its shares on a stock exchange soon.
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