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

Thursday, July 16

Noteworthy macro moves today: Nikkei 225 Index (Japan) -2.9%. Nasdaq 100 Index (US) -1.1%. US 10Y Treasury Bond Index -0.3%. Noteworthy US mega-cap moves today: UnitedHealth Group Inc (UNH) +6.7%. Broadcom Inc (AVGO) -2.2%. Alphabet Inc (GOOG) +1.8%.

Global equity indices are trading lower today, with notable declines in the Nikkei 225 Index down nearly 2.9% and the Nasdaq 100 Index falling by about 1.1%. This downward trend is reflected across major markets as geopolitical tensions in the Middle East continue to weigh on investor sentiment, particularly following recent military actions involving the U.S. and Iran.

In the U.S., initial jobless claims fell to 208k for the week ending July 11, significantly below expectations of an increase to 217k, indicating a robust labor market despite ongoing economic pressures. Continuing claims also decreased to 1.805m, suggesting low levels of firing amid a challenging economic environment.

Retail sales data released today showed a modest increase of 0.2% month-over-month for June, aligning with market expectations but marking the smallest gain in five months, which raises concerns about potential slowing consumer spending as inflationary pressures persist.

In Europe, Italy reported a trade surplus of €4.8 billion for May, exceeding expectations but down from last year's figures due to rising import costs amid ongoing economic challenges in global supply chains. Meanwhile, the Euro Area recorded a significant trade deficit of €7.8 billion for May, much worse than anticipated and highlighting broader economic vulnerabilities.

iShares MSCI South Korea ETF (EWY) [-3.7%]
South Korea's announcement of a temporary halt on new single stock leveraged ETFs could impact investor sentiment and trading dynamics in the broader ETF market, including the iShares MSCI South Korea ETF. This development follows the Bank of Korea's decision to raise its benchmark interest rate by 25 basis points to 2.75%, marking the first increase since January amid inflation concerns. Additionally, escalating geopolitical tensions between the U.S. and Iran contribute to increased market instability. As a result, the iShares MSCI South Korea ETF is trading lower in pre-market hours, reflecting a notable decline that aligns with broader market trends, including a drop in the Nasdaq 100 Index.

VanEck Semiconductor ETF (SMH) [-2.7%]
Chip stocks are under pressure this morning, contributing to a decline in the VanEck Semiconductor ETF. In pre-market trading, the ETF fell, reflecting broader weaknesses in the semiconductor sector that have also impacted Nasdaq futures. Notably, Taiwan Semiconductor decreased by 3.9%, and Arm Holdings dropped 4%. This selling pressure follows significant declines in Asian markets, where SK Hynix plummeted 11%. Mixed signals from corporate earnings and economic indicators have further weighed on market sentiment, with strong results from UnitedHealth failing to uplift the semiconductor sector. The ETF's performance is also correlated with a decline in the Nasdaq 100 Index, which has seen a drop of around 1%.

iShares MSCI Japan ETF (EWJ) [-2.0%]
The Nikkei 225 index in Japan fell significantly, declining by nearly 3%, primarily due to losses in major tech companies. This drop reflects ongoing volatility amid global economic uncertainties and may affect investor sentiment towards Japanese equities, including the iShares MSCI Japan ETF. The top holdings within the ETF also contributed to its performance, with notable declines from SFTBY at -4.6%, MUFG at -1.62%, and others. In pre-market trading, the iShares MSCI Japan ETF is experiencing a notable decline, following a brief gain after Wednesday's close before sharply dropping. This movement aligns with broader market trends, as global equity indices, including U.S. markets, are generally lower.

UNH | +6.6% | +27.2B
UnitedHealth Group Inc | Health Care
UnitedHealth Group Inc reported strong second-quarter results, with adjusted earnings per share of $6.38, significantly exceeding analysts' expectations of $4.90. Total revenues reached $112.03 billion, surpassing the forecast of $110.85 billion, while net income increased to $5.484 billion from $3.406 billion a year prior. Following these results, the company raised its full-year adjusted EPS guidance to between $19.50 and $20.00, up from over $18.25, citing improved cost management and operational efficiencies. The Managed Health Care sector is also moving significantly higher, contributing to UnitedHealth's price movement during pre-market hours, where shares are trading sharply higher since Wednesday's close.

ABBNY | -5.2% | -9.4B
Abb Ltd | Industrials
ABB has agreed to acquire Rotork for approximately $5.5 billion, marking its largest acquisition to date. The cash offer of 503 pence per Rotork share represents a premium of around 60% over the stock's recent average price. This strategic move aims to enhance ABB's focus on electrification and automation while expanding its capabilities in large infrastructure projects. Additionally, ABB reported a net profit increase to $1.23 billion for Q2, up from $1.15 billion year-over-year, on revenues of $9.475 billion, reflecting a 12% year-over-year growth. Despite these developments, ABB shares are trading sharply lower during pre-market hours, indicating a significant market reaction.

TELNY | -12.4% | -2.2B
Telenor ASA | Communication Services
Telenor ASA's stock is experiencing significant downward pressure following its second-quarter earnings report released earlier today. The company reported adjusted earnings per share of $0.21, below the $0.26 estimate, and revenue of $1.921 billion, missing the $1.930 billion forecast. Additionally, Telenor revised its financial outlook for 2026, citing competitive pressures and performance challenges, particularly in Norway and Bangladesh. This has raised concerns among investors regarding the company's growth trajectory and operational execution amid a challenging market environment. As a result, shares are trading sharply lower during pre-market hours.

JBHT | +6.1% | +1.9B
J B Hunt Transport Services Inc | Industrials
J.B. Hunt Transport Services Inc experienced a notable increase in its stock price following a series of analyst upgrades and strong second-quarter earnings results. The company reported earnings per share of $1.91, exceeding analyst expectations of $1.73, along with revenues of $3.50 billion, surpassing estimates of $3.24 billion. Barclays raised its price target to $300, while TD Cowen and Baird also adjusted their targets upward, reflecting increased confidence in the company's growth trajectory. Discussions on social media highlighted almost 60% operating income growth in J.B. Hunt's Intermodal segment, confirming strong demand despite market challenges. Earlier in the session, shares pulled back from a session high but remain higher since Wednesday's close, indicating robust momentum amid the positive news.

ASTS | -12.3% | -1.8B
AST SpaceMobile Inc | Communication Services
AST SpaceMobile Inc announced the pricing of a $1 billion offering of 1.625% convertible senior notes due 2034, with an initial conversion price set at approximately $79.57 per share, reflecting a 20% premium over Wednesday's close. This announcement has raised concerns about potential dilution for existing shareholders. Following the initial disclosure, shares fell sharply in the prior trading session, and reports indicated a further decline of over 10% in after-hours trading. The capital raised is expected to support growth initiatives, including partnerships or acquisitions. In pre-market trading today, AST SpaceMobile shares are continuing to decline sharply, reflecting ongoing investor apprehension regarding the implications of this capital raise on future performance.

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