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postTech led a sharp pullback in US stock futures on Tuesday as doubts about high-running valuations preyed on investors sifting through the latest flurry of quarterly earnings.
S&P 500 futures (ES=F) sank 1%, while those on the tech-heavy Nasdaq 100 (NQ=F) tumbled 1.3%. Contracts on the Dow Jones Industrial Average (YM=F), which includes fewer tech stocks, fell roughly 0.7%, or around 300 points.
Wall Street is getting nervous that companies aren’t performing well enough to justify their high-riding market valuations, prompting big bank CEOs to flag a likely correction ahead. Palantir (PLTR) shares dropped more than 5% despite solid quarterly results as analysts questioned the stock’s lofty price-to-earnings ratio.
Skepticism is now seeping in about the staying power of this year’s tech-driven rally, even as earnings come in strong. Stocks are retreating from records, after AI-heavy tech names shone in a mixed session on Monday to help lift the Nasdaq (^IXIC) and the S&P 500 (^GSPC).
Before the bell, Uber (UBER) posted strong results, but shares slipped in a sign investors wanted more. Eyes are now on chipmaker AMD’s (AMD) report after market close, with focus on its massive AI deals. Spotify (SPOT) and SuperMicro (SMCI) are also on the docket.
Meanwhile, Norway’s sovereign wealth fund said it will vote against approving Tesla (TSLA) CEO Elon Musk’s $1 trillion pay package, marking critical opposition by one of the EV maker’s biggest stake holders.
Investors are also keeping their eyes on potential developments in Washington, as the US government shutdown enters its 35th day to equal the record for the longest in history. The stoppage continues to delay the release of key economic data crucial to the Federal Reserve and Wall Street, including the jobs report slated for release this week.
LIVE 9 updates
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Uber stock dips despite strong Q3 earnings with Wall Street wanting more
Uber (UBER) reported strong third quarter earnings on Tuesday before the bell, but failed to impress investors — who probably wanted more, sending the stock down 4% in premarket trading.
Yahoo Finance’s senior reporter Pras Subramanian delves into the latest results from the ride-hailing company.
Read more here.
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Good morning. Here’s what’s happening today.
Please note, some government data will not be released due to the shutdown.
Economic data: JOLTS job openings (September)
Earnings calendar: AMD (AMD), Shopify (SHOP), Uber (UBER), Arista Networks (ANET), Amgen (AMGN), Eaton Corporation (ETN), Pfizer (PFE), BP (BP), Ferrari (RACE), Marriott International (MAR), Apollo Global Management (APO), Thomson Reuters (TRI), Zoetis (ZTS), Marathon Petroleum (MPC), Coupang (CPNG), Axon Enterprises (AXON), Aflac (AFL), Suncor Energy (SU), Exelon (EXC), Yum! Brands (YUM), Live Nation Entertainment (LYV), Supermicro Computer (SMCI), Archer-Daniels-Midland (ADM), Kinross Gold Corporation (KGC), Broadridge Financial Solutions (BR), Leidos (LDOS), Pinterest (PINS), TPG (TPG), Toast (TOST), Global Payments (GPN), Rivian (RIVN), Molson Coors (TAP)
Here are some of the biggest stories you may have missed overnight and early this morning:
Wall Street CEOs warn: Brace for 10% pullback in stocks
Earnings reveal tech strength and consumer weakness
Palantir slides as valuation doubts cloud upbeat outlook
Bitcoin sinks toward $100,000 after breaking key level
Earnings: Pfizer slips, ADM stock tanks
Amazon’s $38B OpenAI deal shows it is no longer an AI laggard
Norway wealth fund to vote against Musk’s $1 trillion pay package
Spotify stock jumps amid strong results, price hike chatter
Uber stock dips despite strong Q3 earnings
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Norway wealth fund to vote against Musk’s $1 trillion Tesla pay package
Shares in Tesla (TSLA) slid in premarket as Norway’s sovereign wealth fund said it would oppose CEO Elon Musk’s proposed $1 trillion pay deal and as the EV maker’s sales in China faltered.
Norges Bank Investment Management’s plan to vote against a stock award to Musk is a setback for its backers at Tesla, given NBIM is the automaker’s ninth-biggest investor, per Bloomberg.
Reuters reported:
Read more here.
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Spotify rises after Q3 earnings tops estimates as margins rebound
Spotify (SPOT) stock rose % before the bell on Tuesday after the audio giant reported better-than-expected third quarter results, beating analyst estimates on revenue and margin, alongside user growth.
Yahoo Finance senior reporter Allie Canal reports on the latest earnings report from Spotify.
Read more here.
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ADM cuts 2025 profit outlook on weaker crush margins, shares tank
ADM (ADM) stock slumped 9% before the bell on Tuesday after it cutting its full-year 2025 profit outlook after weaker crush margins and delays in US biofuel policy weighed on results, sending the grain trader’s shares down nearly 9% in pre-market trading.
Reuters reports:
Read more here.
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Premarket trending tickers: Nvidia, MP Materials, Sarepta Therapeutics
Nvidia (NVDA) stock fell more than 1% in premarket trading on Tuesday. The fall in share price follows the news that Microsoft (MSFT) will provide the UAE with Nvidia chips for the first time.
MP Materials (MP) stock fell 3% in premarket trading after President Trump suggested the threat surrounding rare earths had “completely gone.”
Sarepta Therapeutics, Inc. (SRPT) stock slumped 39% before the bell on Tuesday after reporting a quarterly loss of $0.13 per share. This compares to earnings of $0.62 per share a year ago.
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Denny’s stock rockets up as breakfast chain agrees take-private deal
Shares of Denny’s shot up nearly 50% in premarket trading after the company said it has agreed to be bought by a group of investors that will take the casual dining chain private.
Reuters reports:
Read more here.
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Wall Street CEOs warn of a pullback from rich valuations
Bloomberg reports:
Wall Street chief executives said investors should brace for an equity market drop of more than 10% in the next 12 to 24 months, and that such a correction may be a positive development.
Corporate earnings are strong but “what’s challenging are valuations,” said Mike Gitlin, who helps oversee about $3 trillion as president and chief executive officer of investment manager Capital Group, during a financial summit organized by the Hong Kong Monetary Authority on Tuesday.
On whether stocks are cheap, fair or fully valued, Gitlin said most people “would say we’re somewhere between fair and full, but I don’t think a lot of people would say we’re between cheap and fair,” he said. The same goes for credit spreads, Gitlin added.
His views were echoed by Morgan Stanley CEO Ted Pick and Goldman Sachs Group Inc.’s David Solomon, who also see the possibility of a significant selloff in the coming period and said pullbacks are a normal feature of market cycles.
Read more here.
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Palantir stock drops after hours despite positive earnings report
Palantir (PLTR) stock dropped over 4% in extended trading after a heated rally despite beating third quarter expectations, as analysts argue the company is overvalued.
Read more here.
