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Below are AI-generated insights on today’s premarket moves, powered by MarketReader technology.

Monday, May 18

Noteworthy macro moves today: GBP/USD +0.5%. USD/CNH -0.2%. Noteworthy US mega-cap moves today: UnitedHealth Group Inc (UNH) -3.4%. Apple Inc (AAPL) -0.8%. Eli Lilly and Co (LLY) -0.8%.

Global equity markets are trading higher following a mixed performance in Asia and ongoing geopolitical tensions affecting oil prices and inflation expectations. The DAX in Germany is notably up by approximately 1.7%, reflecting positive sentiment despite concerns over rising bond yields influenced by the U.S.-Iran conflict.

In the U.S., major indices are also showing gains as investors react to recent economic data releases and geopolitical developments. The National Association of Home Builders is set to release its report on homebuilder confidence later today; however, market focus remains on inflationary pressures stemming from rising oil prices which have surged due to escalating tensions in the Middle East.

Additionally, Italy's Balance of Trade data released this morning showed a trade surplus of €4.709 billion for March, falling short of expectations of €5.2 billion amid rising import costs that could signal potential weaknesses in export sectors. This has contributed to a cautious outlook among investors regarding Italy's economic stability moving forward.

Invesco DB Agriculture Fund (DBA) [+1.5%]
In pre-market trading, Invesco DB Agriculture Fund is gaining modestly since Friday's close. The asset's performance has been notable, having peaked earlier this morning before retracing slightly. No specific news or development was identified to explain this price movement. Global equity markets are mixed, influenced by rising geopolitical tensions and inflationary pressures, particularly related to the U.S.-Iran conflict, which has impacted energy prices.

Vanguard Mortgage-Backed Securities ETF (VMBS) [+0.7%]
Vanguard Mortgage-Backed Securities ETF is modestly higher since Friday's close, reflecting a notable upward trajectory during after-market hours. The session began with a low of 0.04% but consistently advanced throughout the trading period. No specific news relating to the ETF's price move was identified. This performance occurs amid broader market trends, where global equity markets are experiencing declines due to profit-taking and rising treasury yields, which have reached their highest levels in nearly a year.

D | +15.5% | +9.3B
Dominion Energy Inc | Multi-Utilities
Dominion Energy Inc shares surged in pre-market trading following the announcement of a definitive merger agreement with NextEra Energy. Under the terms of the all-stock transaction, Dominion shareholders will receive 0.8138 shares of NextEra for each share they own, along with a one-time cash payment of $360 million at closing. The merger, which is expected to be tax-free and immediately accretive to adjusted earnings per share, aims for over 9% growth through 2032. Both companies' boards have unanimously approved the deal, which is anticipated to close within 12 to 18 months pending regulatory approvals. This news has driven shares sharply higher since Friday's close, reflecting significant investor interest in the combined entity's potential in the growing energy sector.

REGN | -11.4% | -7.8B
Regeneron Pharmaceuticals Inc | Biotechnology
Regeneron Pharmaceuticals Inc shares are declining in pre-market trading following multiple analyst downgrades of their price targets. Bernstein's William Pickering reduced his target from $916 to $861 while maintaining an Outperform rating. Piper Sandler's Biren Amin lowered his target from $875 to $855, also with an Overweight rating. BMO Capital's Evan David Seigerman made a significant cut from $900 to $730, retaining an Outperform rating. These downgrades follow Regeneron's recent announcement of a $125 million collaboration with Parabilis Medicines for developing Antibody-Helicon Conjugates, which has raised investor concerns about the company's near-term financial outlook. Additionally, shares have been affected by disappointing results from a Phase 3 trial of fianlimab in combination with cemiplimab for treating melanoma, which did not achieve statistical significance despite showing a numeric improvement in progression-free survival.

F | +6.5% | +3.7B
Ford Motor Co | Automobile Manufacturers
Ford Motor Co's stock is advancing sharply in pre-market trading following the announcement of a five-year framework agreement between Ford Energy and EDF Power Solutions North America. This agreement allows EDF to procure up to 4 GWh of battery energy storage systems annually, positioning Ford as a key supplier for EDF's grid-scale energy projects in the U.S., with deliveries set to begin in 2028. Additionally, Ford plans to launch seven new models in Europe by 2029, enhancing its software services and aiming to regain market share in the passenger vehicle sector amid increasing competition. These strategic moves were revealed during a dealer meeting in Salzburg and have contributed positively to the stock's performance today.

NOW | +5.5% | +1.1B
ServiceNow Inc | Systems Software
ServiceNow Inc's stock is advancing in pre-market trading following several key developments. Bank of America Securities reinstated a Buy rating with a price target of $130, which has positively influenced investor sentiment. Additionally, the acquisition of a stake in ServiceNow by former President Donald Trump has generated retail interest and sparked discussions on social media platforms. This enthusiasm aligns with a broader market shift towards software-as-a-service companies, with ServiceNow noted as a favored choice among traders. The company's strong first-quarter revenue growth of 22% and a recent $4 billion bond sale further enhance its financial appeal. Earlier in the session, shares pulled back from a session high but remain higher since Friday's close.

UNH | -3.6% | -12.7B
UnitedHealth Group Inc | Managed Health Care
Shares of UnitedHealth Group experienced a decline following Berkshire Hathaway's announcement that it sold its entire 5.04 million-share position in the health insurer during the first quarter, as disclosed in regulatory filings. This news has prompted considerable discussion among retail traders, many of whom view Berkshire's exit as premature given UnitedHealth's recent strong performance. Concerns about rising medical costs and Medicare Advantage reimbursement pressure also contributed to the downward movement. The stock had previously surged approximately 45% since February 10, reaching near $400, but sentiment shifted negatively with this development. Earlier in the session, shares rebounded from a session low but remain lower since Friday's close.

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