Stock futures were indicating a positive start to the week on Monday, suggesting a potential rebound after the S&P 500 and Nasdaq Composite endured six consecutive days of losses. Investor sentiment shifted towards corporate earnings as they awaited updates from key companies. Here’s a closer look at some of the stocks expected to make significant moves:
- Nvidia: Pre-market trading data showed Nvidia shares on the rise, with a 1.6% increase. The artificial-intelligence chip maker experienced a notable decline of 10% on Friday, marking its most significant single-day percentage drop since March 16, 2020. The substantial loss in market capitalization, totaling $212 billion on Friday, was unprecedented for the company. This decline came amidst broader pressure on technology stocks, particularly in the semiconductor sector.
- Super Micro Computer: Pre-market trading activity indicated a 2.8% increase in shares of Super Micro Computer. The company faced a sharp decline of 23% on Friday following its announcement that it would report earnings on April 30 without providing preliminary results for its fiscal third quarter. Investors had been anticipating a positive update from the company, given its track record of increasing profit and sales outlook ahead of earnings in previous quarters.
- Tesla: Tesla shares were down by 3% after the electric vehicle company announced over the weekend that it would be reducing prices for its Model Y, S, and X vehicles in the U.S., China, and Europe. The price cuts raised concerns about weakening demand for Tesla vehicles, which has been a recent challenge for the company. Tesla shares had closed lower for six consecutive sessions, with the latest drop occurring after the recall of nearly 4,000 Cybertruck vehicles.
- Li Auto: U.S.-listed shares of Li Auto experienced a significant decline of 7.1% after the Chinese EV maker also reduced prices in China.
In other news, discussions between Salesforce and Informatica, a data-management software provider, have reportedly stalled due to disagreements over terms. Earlier discussions between the two companies had hinted at a potential deal valued at around $10 billion.
Earnings reports are anticipated from several companies on Monday, including Verizon Communications, SAP, Cadence Design Systems, Truist Financial, and Nucor. Throughout the week, earnings reports are expected from a wide range of companies spanning various sectors, including technology, aerospace, finance, and consumer goods.
Stay tuned to Barron’s for more updates and insights on the stock market and corporate earnings.