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

Wednesday, July 01

Noteworthy macro moves today: EUR/USD -0.4%. US Dollar Index +0.4%. Copper -1.7%. Noteworthy US mega-cap moves today: Meta Platforms Inc (META) +6.6%. Walmart Inc (WMT) -2.2%. Space Exploration Technologies Corp. Class A Common Stock (SPCX) +1.9%.

Global equity indices are trading mixed today; while Asian markets are higher, U.S. and European indices are lower amid ongoing geopolitical tensions and economic data releases that have influenced market sentiment. The cash equity and bond markets in Canada and Hong Kong are closed today for public holidays.

In the U.S., the ADP Employment Change report released today showed an increase of only 98k jobs in June, significantly below expectations of 113k and down from a revised figure of 122k in May. This disappointing job growth has raised concerns about labor market strength and potential implications for Federal Reserve monetary policy moving forward.

Additionally, the MBA 30-Year Mortgage Rate fell to 6.57%, marking a decrease that aligns with market expectations following recent trends showing slight declines in borrowing costs. However, mortgage applications remained steady with a modest increase in purchase applications but a decline in refinancing activity.

In Europe, inflation data released today indicated that Eurozone inflation dropped to 2.8% in June from 3.2% in May, falling below expectations of a rise to 3%. This decline raises cautious optimism regarding potential adjustments to monetary policy by the European Central Bank as they navigate ongoing economic pressures.

VanEck Semiconductor ETF (SMH) [-2.2%]
Micron Technology and General Motors have announced a strategic agreement to secure long-term memory supply for GM's vehicle production, underscoring ongoing demand in the semiconductor sector. Additionally, South Korea reported record-high exports driven by a surge in semiconductor shipments, indicating strong global demand. Despite these positive developments, the VanEck Semiconductor ETF is trading lower in pre-market hours, reflecting negative market sentiment with a decline of 2.09% since Tuesday's close. Contributing to this downturn are significant losses among key holdings, including Nvidia, Micron, Applied Materials, Lam Research, and KLA Corporation. The Nasdaq 100 Index has also declined by 0.72%, which may be impacting the performance of SMH.

iShares MSCI Brazil ETF (EWZ) [-1.5%]
Ongoing tensions in U.S.-Iran negotiations are raising concerns about oil prices and geopolitical stability, which are negatively impacting emerging markets like Brazil. This backdrop is compounded by the ADP National Employment Report, which showed private sector job growth of only 98K in June, below expectations, suggesting a slowdown in economic activity that may affect investor sentiment toward Brazilian equities. As a result, the iShares MSCI Brazil ETF is trading lower in pre-market hours. Notably, significant contributors to this decline include holdings such as VALE, ITUB, and PBR, each reflecting negative returns.

Vanguard Information Technology ETF (VGT) [-1.2%]
Vanguard Information Technology ETF is experiencing a decline in pre-market trading, influenced by a broader downturn in technology stocks amid rising tensions between the U.S. and Iran, which have heightened inflation concerns and expectations for Federal Reserve interest rate hikes. The ETF's daily return is down approximately -0.6%, with significant contributors to this decline including NVIDIA, which fell -1.25%, and Advanced Micro Devices, down -2.31%. Additionally, the S&P 500 Index has also declined by 0.16%, reflecting a strong historical correlation with Vanguard Information Technology ETF, further impacting its performance. Earlier in the session, VGT reached a low point of -1.27% before recovering partially.

GLW | -4.1% | -8.5B
Corning Inc | Information Technology
Corning Inc's stock is facing downward pressure in pre-market trading, influenced primarily by notable activity in the options market. A significant put buyer realized substantial gains after lifting a $4.60 offer for 1,985 weekly puts, leading to a mark-to-market profit of 42% as shares closed at $255.43. While Mizuho raised its price target to $270 from $220 and maintained an Outperform rating, the market reaction appears more affected by the put activity than by this positive outlook. As a result, Corning's shares are trading sharply lower since Tuesday's close, reflecting ongoing volatility in the broader technology sector.

CRM | +4.2% | +6.6B
Salesforce Inc | Information Technology
Guggenheim upgraded Salesforce Inc to a Buy rating from Neutral, setting a price target of $228. The firm noted that concerns regarding AI's impact on the company are overstated and highlighted the current valuation as an attractive entry point for investors. This upgrade follows a significant decline of over 25% in June due to AI-related fears. Additionally, retail sentiment on Stocktwits has shifted to neutral from bearish, contributing to today's upward movement. Shikiar Asset Management also disclosed a $2.75 million stake in Salesforce, further bolstering investor confidence. In pre-market trading, Salesforce shares are gaining, reflecting these positive developments.

BE | +7.4% | +5.4B
Bloom Energy Corp | Industrials
Bloom Energy Corp's stock is advancing in pre-market trading, buoyed by the announcement of an expanded partnership with Brookfield Asset Management. The collaboration has increased funding for AI infrastructure projects from $5 billion to $25 billion, aimed at meeting the rising demand for clean and reliable power solutions in the AI sector. This strategic move underscores Bloom's positioning within a rapidly growing market, attracting interest from hyperscalers and AI infrastructure developers. The partnership aligns with Brookfield's broader strategy to invest heavily in AI and clean energy initiatives, enhancing Bloom Energy's appeal to investors. Despite some intraday fluctuations, the stock reflects notable strength ahead of regular trading hours.

NOW | +4.5% | +1.0B
ServiceNow Inc | Information Technology
ServiceNow shares advanced significantly in pre-market trading following Guggenheim's upgrade from Neutral to Buy. The firm set a new price target of $125, indicating confidence in ServiceNow's potential for sustained double-digit growth, particularly within the U.S. Federal Government sector. This upgrade marks a reversal for the company, which had previously lagged behind its software peers amid concerns regarding AI disruption. Guggenheim acknowledged these risks but views the current valuation as an appealing entry point for investors. Additionally, there was notable interest in ServiceNow options, with 1,749 contracts bought above the ask, suggesting heightened investor engagement with the stock.

GIS | +3.9% | +0.8B
General Mills Inc | Consumer Staples
General Mills Inc reported its fourth-quarter results this morning, revealing a net loss of $2.01 billion, or a loss per share of $3.74, compared to earnings of $294 million, or $0.53 per share, in the prior year. However, adjusted earnings per share came in at $0.95, surpassing analyst expectations of $0.80. Net sales increased 1% to $4.61 billion, aligning with estimates. The company also announced a quarterly dividend of $0.61 per share and set a target of $3 billion in cumulative cost savings by fiscal 2030. Following the earnings announcement, General Mills shares are trading higher in pre-market hours, despite experiencing a pullback from earlier gains.

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