Dow Hits 50K Milestone as Markets Catch Their Breath

U.S. stock futures showed little movement Monday morning as investors waited for important economic data and company earnings reports after a turbulent week.

In Friday's session, the Dow Jones Industrial Average jumped over 1,200 points to close above 50,000 for the first time. The S&P 500 and Nasdaq Composite also rose 1.92% and 2.11% respectively.

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Major Indexes: S&P 500 flat, Nasdaq lower, Dow flat, Russell 2000 flat

Leading Sectors: Materials, Utilities, Health Care

Lagging Sectors: Consumer Discretionary, Technology, Financial, Industrial

STMicroelectronics (STM): The semiconductor firm announced an expanded multi-billion-dollar partnership with Amazon Web Services to support cloud and AI data center infrastructure. The stock gained in premarket trading.

Kroger (KR): The Wall Street Journal reported the grocery chain is preparing to name former Walmart executive Greg Foran as its next CEO. Shares jumped in premarket trading.

Monday.com (MNDY): The work management platform reported fourth quarter earnings that beat expectations with strong revenue growth for the full year. However, the company issued below-consensus revenue guidance for the current quarter and fiscal year, projecting lower operating margins. The stock plunged in premarket trading.

Oracle (ORCL): The technology company received an upgrade to buy from DA Davidson, with analysts citing optimism that OpenAI will strengthen its position against Google and fulfill its commitments to Oracle this year. Shares rose in premarket trading.

Hims & Hers (HIMS): The telehealth company announced it will stop selling its compounded Wegovy pill following an FDA probe and a federal patent-infringement lawsuit from Novo Nordisk alleging violations related to compounded Wegovy and Ozempic products. The stock declined sharply in premarket trading,

Kyndryl (KD): The IT services company's shares plummeted after announcing its CFO's departure and an SEC-related accounting review that delayed a regulatory filing. The company posted fiscal third quarter results, issued full-year outlook, and named interim executives, noting the review isn't expected to impact financials. The stock fell sharply in premarket trading.

Robinhood (HOOD): The trading platform received an upgrade to buy from Wolfe Research, which highlighted the company's attractive risk-reward profile despite recent weakness in crypto-related stocks. Shares moved higher in premarket trading.

Semiconductor Stocks: Shares across the semiconductor industry fell following a South Korean media report that Samsung will begin producing next-generation high bandwidth memory chips this month. Micron Technology (MU), Broadcom (AVGO), and Advanced Micro Devices (AMD) all declined.

Cleveland-Cliffs (CLF): The steel company reported fourth quarter earnings with revenue of $4.3 billion that missed expectations and posted an adjusted loss per share. The company issued guidance for steel shipments and cost reductions in the coming year and confirmed ongoing partnership talks with POSCO. Shares fell in premarket trading.

Pagaya Technologies (PGY): The fintech company posted record fourth quarter and full-year results with strong revenue growth and reported net income. Despite the earnings beat, the company issued guidance for the coming quarter and year. The stock declined in premarket trading.

Apollo Global Management (APO): The investment firm reported fourth quarter and full-year results, declared a quarterly dividend, and announced a strategic partnership with Schroders to develop wealth and retirement products targeting significant annual flows in the UK and US markets. Shares rose in premarket trading.

Sally Beauty Holdings (SBH): The beauty retailer reported first quarter adjusted earnings and raised the low end of its full-year earnings guidance. The company also provided guidance for the current quarter and full-year revenue. Shares moved slightly lower in premarket trading.

Dynatrace (DT): The AI-powered observability platform company exceeded guidance with strong third quarter results, reporting earnings and revenue that beat analyst estimates. The company also authorized a new $1 billion share repurchase program. The stock surged in premarket trading.

Valaris (VAL): Offshore drilling company Transocean announced a definitive agreement to acquire Valaris in a $5.8 billion all-stock merger, creating a combined company with significant enterprise value and a large rig fleet. Transocean shares fell while Valaris shares jumped in premarket trading.

(Stocks showing elevated volume and notable price movement)

Gainers: ROIV, NVST, MMM, LUV, SYY

Losers: HUBS, PAR, PINS, MNDY, FIG

None.



Disclaimer: This newsletter is for informational purposes only and does not constitute investment advice. Readers should conduct their own research and consider consulting a financial professional before making investment decisions.