Share prices are going down across the board this morning as investors await important announcements from major companies and important inflation data. The Nasdaq is leading the declines, falling more than 2%, All the stocks making big moves before Tuesday’s opening bell include Twitter (TWTR), Wynn Resorts (WYNN), Las Vegas Sands (LVS) and Finish Line (FINL). Watch these stocks before the opening bell rings. If you know about this phenomenon, premarket trading includes the first few hours of trading on the U.S.
Here are some big movers in the premarket.
Twitter (TWTR) – Tumbled in premarket trading following Elon Musk’s announcement late Friday that he was abandoning his $44 billion takeover deal. Twitter responded by stating it plans to take legal action to hold Musk to the agreement.
Wynn Resorts (WYNN), Las Vegas Sands (LVS) – The gambling hub of Macau is currently undergoing a one-week shutdown in an effort to contain the spread of Covid-19, dropping Wynn Resorts 6% and Las Vegas Sands 5.4% in premarket trade, as Macau begins its weekly shutdown.
Lululemon (LULU), Under Armour (UAA) –Lululemon dropped 3.9% in the premarket after Jefferies downgraded the apparel maker from hold to underperform. Analysts have concerns over increasing competition and waning COVID-related demand. They cut the company’s rating from buy to hold because of management issues and less-than-ideal performance.
Uber Technologies (UBER) – According to a report by the International Consortium of Investigative Journalists, Uber lobbied extensively to ease labor laws and tax laws, and used so-called “stealth technology” to avoid government scrutiny and gain public trust. Uber has issued a statement saying it has made mistakes in the past and is a different company today. Uber lost 2.6% in premarket action.
China tech stocks – These stocks dropped following the Chinese government’s decision to impose a fine on Alibaba, Other China tech companies and Tencent for failing to comply with anti-monopoly rules and not disclosing transactions. In the premarket, Alibaba fell 3.9%, JD.com (JD) fell 3.4%, Pinduoduo (PDD) fell 4.4%, and Baidu (BIDU) lost 3%.
Mattel (MAT) – Goldman Sachs upgraded Mattel from “neutral” to “buy,” believing the toy maker will benefit from new TV and film releases. Mattel gained 2.9% in premarket trading.
Nio (NIO) – A new electric car company based in China said that its board had formed an independent committee to investigate allegations made by short-selling firm Grizzly Research. Gzrial apparently believes that Niò is making misleading profit margins and inflated its revenue in previous periods. Niò stock has plunged 3.2% this morning.
Qorvo (QRVO) – The provider of radio frequency technology was downgraded to “market perform” from “outperform” at Cowen, which thinks weakness in the Android market will weigh on revenue and profit margins. Qorvo lost 2.9% in premarket action.
The Nasdaq drops 2% ahead of earnings and inflation data in US
The stock market fell today, with the Nasdaq Composite down by 2% and investors are on the verge of releasing their earnings as they await crucial inflation data set to be released later this week.
Shares of tech companies dragged the market lower for the day, with losses worsening among the major indexes at the end of the session. With three major U.S. companies set to report quarterly earnings this week, investors are concerned about any effects related to the price of food and the dollar.
Market experts will evaluate today the Consumer Price Index in order to assess the consequences of inflation on American products in June. Last month, the cost of things went up at an alarming rate of 8.6%. It’s the fastest pace we’ve seen in 41 years. The extent of inflation might be starting to level off, especially in parts of the energy and commodities markets, but it will likely remain high.
“Inflation is ‘public enemy number one’ and that will continue to drive fears that the Fed will aggressively tighten policy and send the US economy quickly into a recession,”wrote Edward Moya, senior markets analyst at Oanda, adding that this week is particularly important for investors ahead of the Federal Reserve’s next meeting at the end of the month.
At the close of the market at 4 p.m. EST on Monday, these are the levels that US indexes had reached
S&P 500: 3,854.47, down 1.15%
Dow Jones Industrial Average: 31,175.52, down 0.52% (162.63 points)
Nasdaq Composite: 11,372.60, down 2.26%
Although sanctions are threatening to cut off Russia’s oil and gas profits, the soaring energy prices have been a boon to Russia. So the national account surplus at the end of last quarter stood at a record $70.1 billion and it has been $138.5 billion so far this year.
According to BlackRock’s mid-year outlook, the US central bank will probably lower economic growth as it tries to tackle inflation. World’s largest asset manager said the Fed is attacking high prices in the wrong way and that it will only adjust after the bad news has already been announced.
Most large bitcoin miners operating in Texas have suspended operations as the state braces for potential rolling blackouts. Meanwhile, bloomberg reported on Monday that the founders of the defunct crypto hedge fund Three Arrows Capital haven’t been cooperating with the liquidators and that their whereabouts are currently unknown.
Crude oil prices fell, but pared losses after falling as much as 4%. WTI was about 1% lower, trading at $103.71. Brent, oil’s international benchmark, slipped 0.3% to $106.67.
Gold weakened slightly and traded at $1,730.20 per ounce. The 10-year bond yield fell by 11.6 basis points to 2.985%.
Bitcoin fell nearly 2% to $20,488.
In conclusion, the stock market is constantly moving and it’s important to pay attention to the big movers. Today, we saw Twitter, Wynn Resorts, Las Vegas Sands all make big moves. Keep an eye on these stocks and see how they continue to perform throughout the day.