Investing.com — U.S. stock futures were broadly mixed on Monday after both the benchmark and 30 stocks hit new closing highs in pre-market trading. Traders are eyeing a slew of corporate earnings this week, including numbers from electric car maker Tesla and semiconductor group Texas Instruments (NASDAQ:). In other news, media reports say activist investor Starboard Value has acquired a stake in Kenvue (NYSE:), a consumer products spinoff of Johnson & Johnson (NYSE:) that went public last year. There is.
1. Futures mix
U.S. stock futures hovered around either side of the flatline on Monday as investors focused on this week's parade of corporate earnings releases.
By 3:26 ET (7:26 GMT), the contract was up 47 points, or 0.1%, but little changed, down 33 points, or 0.2%.
Wall Street's major indexes rose for the sixth consecutive week last week, with the Dow Jones Industrial Average and the benchmark S&P 500 hitting new highs at Friday's close.
Shares of streaming giant Netflix (NASDAQ:) soared, with better-than-expected subscriber growth and an optimistic outlook for the remainder of the fiscal year supporting sentiment. Apple (NASDAQ:) also liked data showing an increase in new sales of its flagship smartphone, the iPhone, in its key market of China, while Bank of America Global Research analysts set a price target for Artificial Intelligence. NVIDIA (NASDAQ:) rose little by little after raising its stock price. Beloved stock.
A series of generally solid financial results from major companies and strong U.S. economic data have fueled stock gains in recent days, but uncertainty remains in the form of soaring stock prices and the outcome of November's pivotal U.S. presidential election. There's a sense of sexuality. .
2. Big profits in the future
With earnings season in full swing, Tesla (NASDAQ:) will be one of the first major U.S. tech companies to report, with results set to be released after the close of trading on Wednesday.
Tesla shares fell this month following the announcement of its long-awaited robotaxi business, which some investors saw as a lack of concrete details. Year-to-date, Tesla stock has underperformed the S&P 500 index, declining about 11% compared to the composite index's 22.5% gain.
After a volatile week for the chip manufacturing industry, semiconductor company Texas Instruments and wafer fabrication equipment group Lam Research (NASDAQ:) are also expected to report results.
Shares in the sector fell last Tuesday after Europe's largest tech company ASML (AS:) predicted lower-than-expected sales and orders in 2025. However, the quarterly profit of Taiwan Semiconductor Manufacturing Co., Ltd. (NYSE:), the world's largest contract chip maker and a major manufacturer of advanced chips used in AI applications, posted a sharp increase in quarterly profits that exceeded expectations. rebounded on Thursday.
3. Starboard invests in Kenvue – Report
Activist investor Starboard Value has acquired a stake in Kenview, the consumer products company behind brands like Band-Aid and Listerine, which went public last year, according to various media reports.
According to reports, the exact size of the investment has not yet been disclosed.
Kenvue, which was spun off from Johnson & Johnson, has a current market capitalization of approximately $41.6 billion. The company's stock price has fallen 18% since going public in May 2023, lagging the broader S&P 500.
Reuters reported, citing sources, that Starboard may be looking to overhaul the way it markets and prices the Kenview brand. The hedge fund's chief investment officer, Jeffrey Smith, will present investment ideas at the 13D Monitor Active Passive Investor Summit later this week.
The Wall Street Journal first reported the story.
4. People's Bank lowers lending rates
The People's Bank of China on Monday cut its benchmark loan prime rate (LPR) by 25 basis points, in the Chinese government's latest move to boost activity in the world's second-largest economy.
The central bank lowered the one-year LPR from 3.35% to 3.10%, while the five-year LPR, a key factor in determining home loan interest rates, was cut from 3.85% to 3.60%. The PBOC last cut interest rates in July.
Chinese authorities have largely telegraphed the decision, with People's Bank of China Governor Ban Gongsheng previously predicting that the LPR rate would be cut by 20 to 25 basis points.
Last month, the Chinese government announced significant measures aimed at reigniting growth, but a perceived lack of details on their implementation, timing and scale has fueled lukewarm investor confidence. .
5. Crude oil fell weekly but remained stable
Crude oil prices rose slightly on Monday, stabilizing from the previous week's sharp decline due to concerns about growing global demand, particularly China, the top oil importer.
By 3:27 a.m. ET, the contract was up 0.6% at $73.50 a barrel, while futures (WTI) were trading 0.8% higher at $69.23 a barrel. It was done.
Brent crude settled down more than 7% last week, while WTI fell about 8% after data showed China's economy grew at its slowest pace since early 2023 in the third quarter. did.
However, sentiment improved slightly after the People's Bank of China lowered its benchmark lending rate on Monday.
Meanwhile, tensions in the Middle East remain in the spotlight, with Israel continuing its operations against both Hamas and Hezbollah, and possibly preparing to retaliate for an attack on Iran in early October.
