Several companies were making headlines in premarket trading. Boeing saw its shares rise over 2% after announcing that CEO Dave Calhoun would be stepping down at the end of the year, along with Board Chairman Larry Kellner. Masimo’s shares soared nearly 12% after the medical technology company announced it was considering a spinoff of its consumer business. Activist investor Quentin Koffey of Politan Capital Management is planning to fight for two more seats on Masimo’s board, and Wells Fargo upgraded the stock citing the potential separation of the businesses. Cleveland-Cliffs also saw a 1.7% increase after winning award negotiations for funding from the Department of Energy on two projects related to decarbonization technology.
Chipmakers such as Intel and Advanced Micro Devices lost about 3% each premarket due to reports that new guidelines in China will phase out U.S. processors in government computers and servers, blocking chips from both companies. Nvidia was also under pressure following a Reuters report about competitors’ plans to target the company’s grip on artificial intelligence through software. Baidu, a technology company, climbed 1.4% after news of potential collaboration with Apple on AI services in China. Disney’s shares rose 1.2% after Barclays upgraded the media company to overweight, noting further upside potential. Blackwells Capital released a letter criticizing Nelson Peltz and urging shareholders to vote for its own board nominees. Foot Locker gained 2.9% after an upgrade to outperform from Evercore ISI due to positive developments expected in the coming year.
Electric vehicle makers Tesla and Rivian both fell over 1% following a downgrade to neutral from Mizuho Securities, which cited profitability challenges when balancing ramping up production. Nio, which was also downgraded to neutral, slipped 0.6%. Scotts Miracle-Gro saw its stock drop 1.8% after a Raymond James downgrade to market perform from strong buy, noting that the recent rally had pushed the stock into “fair value territory.” Overall, the market was reacting to a mix of news and analyst actions affecting a range of companies in different sectors. Investors were keeping a close eye on developments in various industries, from technology to steel production, as well as in the electric vehicle market and other consumer sectors.
Boeing’s leadership change and Masimo’s potential spinoff were key drivers behind their stock price movements in premarket trading. Chipmakers experienced losses due to reports of China phasing out U.S. processors and competitors targeting Nvidia’s AI dominance. Baidu’s potential collaboration with Apple and Disney’s upgrade by Barclays also influenced investor sentiment. Foot Locker, Tesla, and Rivian saw changes in their stock prices following analyst actions, while Scotts Miracle-Gro faced a downgrade from Raymond James. These moves reflected a combination of company-specific news and broader market trends that were impacting various sectors.
The potential collaboration between Baidu and Apple in AI services for the Chinese market was seen as a positive development for both companies, leading to increased investor interest in Baidu’s stock. Disney’s upgrade by Barclays was driven by expectations of further upside, indicating confidence in the company’s growth prospects. Foot Locker’s outperformance and positive developments in the U.S. and European markets were highlighted as reasons for the stock upgrade by Evercore ISI. Electric vehicle makers faced challenges due to concerns around profitability and production ramp-up, leading to downgrades for Tesla, Rivian, and Nio. Overall, investor sentiment in the premarket trading session was influenced by a mix of company-specific news and broader market trends impacting various sectors.
In conclusion, the premarket trading session saw a mix of positive and negative movements in stock prices, driven by company-specific news and analyst actions across different sectors. Boeing, Masimo, and Cleveland-Cliffs experienced gains following key announcements, while chipmakers, electric vehicle makers, and Scotts Miracle-Gro faced losses due to various factors impacting their businesses. Baidu and Disney saw increased investor interest following positive developments, while Foot Locker received an upgrade based on anticipated positive developments in the coming year. The market reaction to these developments reflected a combination of company-specific dynamics and broader industry trends that were shaping investor sentiment in the premarket session.
