Stock futures showed modest gains on Monday following a positive week for the S&P 500, which registered its eighth weekly gain out of the last nine. Investors were cautiously optimistic, with attention focused on upcoming economic data releases, particularly the Federal Reserve’s release of the personal consumption expenditures price index on Friday, a key inflation gauge that influences monetary policy decisions.
Apple’s shares saw a slight dip in premarket trading as the tech giant faced new regulatory challenges. The European Union charged Apple with violating the Digital Markets Act, alleging that its App Store rules restrict app developers from directing consumers to alternative platforms for content and offers. Concurrently, reports surfaced that Apple was in discussions with Meta Platforms, the parent company of Facebook and Instagram, regarding a potential integration of Meta’s generative AI model into Apple’s AI strategy for iPhones, iPads, and Macs. Meta’s shares edged up by 0.2% in response to the news.
Meanwhile, Trump Media & Technology Group, the parent company of former President Donald Trump’s Truth Social platform, experienced a significant premarket rise of 7.1%. This surge came after the company announced it expected proceeds of more than $69.4 million from the exercise of warrants. The Securities and Exchange Commission recently approved Trump Media’s registration statement and the resale of shares and warrants, potentially allowing it to raise up to $247 million if all warrants are exercised.
United Parcel Service (UPS) made headlines with its agreement to sell its Coyote Logistics business to RXO, a third-party logistics provider, for $1.025 billion. UPS had acquired the Coyote business in 2015 for $1.8 billion. In premarket trading, UPS shares rose by 0.2%, while RXO’s shares surged by 11% on the acquisition news.
Eli Lilly saw a 1% increase following its announcement that it was seeking FDA approval to expand the use of its weight-loss drug Zepbound to include treating sleep apnea. This development impacted shares of ResMed, a company specializing in sleep apnea and COPD treatments, which fell by 12% to $180.98.
Under Armour’s stock declined by 3% after the company announced a $434 million settlement in a class-action lawsuit dating back to 2017. The lawsuit alleged that Under Armour misled shareholders about its revenue growth. Under Armour clarified that the settlement did not imply an admission of fault or wrongdoing but was aimed at mitigating the risks and costs associated with ongoing litigation.
Looking ahead, the week was poised to be eventful with anticipated earnings reports from major companies including FedEx, Carnival, Micron Technology, Paychex, General Mills, Jefferies Financial Group, Levi Strauss, Nike, Walgreens Boots Alliance, and McCormick & Co. These reports were expected to provide crucial insights into corporate performance amid ongoing economic challenges and the recovery phase.
Overall, market participants were closely monitoring economic data releases and corporate earnings reports to gauge the trajectory of economic recovery, inflation trends, and the overall market sentiment.