Stock futures are on the rise as markets look to extend this year’s rally despite stumbling in August. Investors will be closely watching the release of minutes from the Federal Reserve’s latest policy meeting and earnings reports from major U.S. retailers.
Key Stocks to Watch
U.S. Steel (X)
U.S. Steel (X) has rejected an unsolicited buyout offer from its rival, Cleveland-Cliffs (CLF). Cleveland-Cliffs valued the company at about $7.3 billion, with an implied offer price of $35 per share. Despite this, U.S. Steel’s board has deemed the proposal “unreasonable.” Interestingly, U.S. Steel’s stock closed at $22.72 on Friday, but it is now surging in premarket trading by 22% to $27.64.
Tesla (TSLA) is experiencing a 1.5% decline after announcing price cuts for two versions of its Model Y sedan in China. The long-range Model Y is now priced at 299,900 yuan, following a reduction of 14,000 yuan. Similarly, the performance version has also been lowered by 14,000 yuan to 349,900 yuan. Tesla is also offering an incentive of 8,000 yuan (approximately $1,100) for select Model 3 sedans in China. These price cuts have sparked discussions about price wars and the demand for electric vehicles in the world’s largest car market.
Stay tuned for updates on these stocks and more as the market unfolds this week.
AMC Entertainment Shares Plunge 27%
In a significant blow to AMC Entertainment, the movie-theater chain’s shares plummeted by 27% in premarket trading following approval for the conversion of its AMC Preferred Equity (APE) units. The APE units, on the other hand, experienced a staggering increase of 30%. As part of its plan to raise capital, AMC aims to convert its preferred equity units, commonly referred to as Apes, into common shares. Additionally, the company plans to implement a 10-for-1 reverse stock split.
Nikola Recalls Class 8 Tre Battery-Electric Vehicles
Nikola Corporation faced a decline of 14% after announcing the recall of approximately 209 of its Class 8 Tre battery-electric vehicles. This decision was made after a third-party investigator attributed a fire incident at the company’s headquarters in Phoenix to a defective battery component. The recall presents a setback for Nikola as it works to address the issue and ensure the safety of its vehicles.
Upgraded Rating and Price Target Boosts Okta Shares
Shares of identity-management software provider Okta witnessed a 4.2% increase, reaching $74.38. This surge followed Goldman Sachs’ decision to upgrade Okta from Sell to Buy and raise its price target from $77 to $91. The positive news surrounding the company led to the positive market response, signaling increased investor confidence.
Earnings Reports in the Spotlight
Several notable companies are expected to release their earnings reports today. Roivant Sciences (ROVI), Monday.com (MNDY), Rumble (RUM), JinkoSolar (JKS), and Canoo (GOEV) will all provide insights into their financial performance. Meanwhile, Walmart (WMT), Home Depot (HD), Target (TGT), Cisco Systems (CSCO), JD.com (JD), Applied Materials (AMAT), Deere (DE), Palo Alto Networks (PANW), and XPeng (XPEV) are scheduled to release their reports later in the week.