Stock Index Futures Slip as Chip Rally Fades, SK Hynix Debut in Focus
Stock Index Futures Slip as Chip Rally Fades, SK Hynix Debut in Focus.
The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
September S&P 500 E-Mini futures (ESU26) are down -0.11%, and September Nasdaq 100 E-Mini futures (NQU26) are down -0.41% this morning, taking a breather after a chip-led rally in the prior session, with all eyes on the U.S. trading debut of SK Hynix.
Chip and AI infrastructure stocks slipped in pre-market trading as investors turned cautious ahead of SK Hynix's debut on Wall Street. Analysts view the South Korean memory chip giant's U.S. listing as a fresh test of investor appetite for the AI trade.
Intel Stock Is 'Too Good to Ignore' as HSBC Sets a New Street-High Price Target
Intel Just Lost a Veteran Employee. It Likely Just Won a Key Catalyst for INTC Stock in the Process.
SK Hynix Stock Debuts for U.S. Investors Tomorrow. The DRAM ETF Could Be the Biggest Loser.
The price of WTI crude edged lower on Friday as talks between the U.S. and Iran on a permanent peace agreement continued despite two days of fighting that sharply reduced traffic through the Strait of Hormuz.
In yesterday's trading session, Wall Street's major indices closed higher. Chip and AI infrastructure stocks rallied, with Arm Holdings (ARM) surging over +9% and Sandisk (SNDK) gaining more than +7%. Also, shares of trucking companies advanced after Citi upgraded the sector, with FedEx Freight Holding (FDXF) climbing over +7% and Old Dominion Freight Line (ODFL) rising more than +3%. In addition, Meta Platforms (META) climbed over +4% after the company unveiled a version of its most advanced AI model featuring a new paid tier for developers. On the bearish side, Costco Wholesale (COST) slid over -4% and was the top percentage loser on the Nasdaq 100 after the retailer reported a slowdown in June comparable sales from the previous month.
The Labor Department's report on Thursday showed that the number of Americans filing for initial jobless claims in the past week unexpectedly fell by -2K to a 6-week low of 215K, compared with the 218K expected. At the same time, U.S. existing home sales unexpectedly fell -2.4% m/m to 4.09 million in June, weaker than expectations of 4.19 million.
"The underlying trend for job creation is probably not as bad as the subdued – but positive – hiring data for June would have suggested. Conversely, the labor picture isn't likely as strong as the previously reported nonfarm payroll gains in prior months indicated," according to James Baird at Plante Moran Financial Services.
New York Fed President John Williams said on Thursday that inflation poses the larger risk to the Fed's dual mandate. Williams said that among the factors driving U.S. inflation, he is most closely watching demand driven by AI. The New York Fed chief added that if demand remains strong, it could force the central bank to raise interest rates. "If this creates a sustained impulse to demand relative to supply in inflation, I do think that's the kind of situation where you don't look through this," he said.
Meanwhile, U.S. rate futures have priced in a 78.1% chance of no rate change and a 21.9% chance of a 25 basis point rate hike at the next FOMC meeting later this month.
Today, all eyes are on South Korean chip memory giant SK Hynix's debut on Wall Street. The company sold 177.9 million American depositary receipts at $149 apiece, raising $26.51 billion in the largest U.S. share sale by a foreign issuer. Each SK Hynix ADR represents one-tenth of a common share, according to a filing with the U.S. Securities and Exchange Commission. SK Hynix's ADRs are set to begin when-issued trading today on the Nasdaq Global Select Market under the symbol SKHYV, before switching to SKHY when they begin regular-way trading on July 13th.
Investors will also monitor an earnings report from Delta Air Lines (DAL), which kicks off the airline earnings season, with carriers expected to showcase the resilience of air travel demand in recent months despite high inflation and economic pressures stemming from the Middle East conflict.
In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.54%, down -0.46%.
The Euro Stoxx 50 Index is down -0.19% this morning, taking a breather after yesterday's tech-led rally. Chip and other AI-related stocks retreated on Friday as investors turned cautious ahead of SK Hynix's U.S. debut. Limiting losses, mining stocks climbed. Also, travel stocks advanced, with easyJet Plc (EZJ.LN) surging over +14% after the airline agreed in principle to a 5.7 billion pound ($7.65 billion) takeover approach from Apollo Global. The benchmark index is on track to end the week lower. Final data released on Friday showed that Germany's annual inflation rate slowed to 2.3% and France's annual inflation rate eased to 1.8% in June, confirming preliminary estimates. Separately, data showed that Italy's monthly industrial production fell more than expected in May, signaling renewed weakness in manufacturing across the Eurozone's third-largest economy. Meanwhile, JPMorgan turned "constructive" on the European steel sector on Friday, citing new EU import restrictions. In other corporate news, Vodafone Group Plc (VOD.LN) popped more than +11% after French billionaire Xavier Niel agreed to buy a 16.2% stake in the company, making him its largest shareholder.
Germany's CPI, France's CPI, and Italy's Industrial Production data were released today.
The German June CPI fell -0.3% m/m and rose +2.3% y/y, in line with expectations.
