NextFin News - As of 8:11 AM ET, U.S. equity futures were mixed, with Dow futures modestly higher while Nasdaq 100 futures lagged as investors balanced strong earnings from select AI and cloud names against higher oil prices and geopolitical risk.
1) Pre-Market Performance
- Nasdaq 100 futures: 29,111.5, down 74.75 points, or -0.26%.
- S&P 500 futures: 7,675.0, down 1.5 points, or -0.02%.
- Dow Jones futures: 53,217.0, up 96.0 points, or +0.18%.
- Europe: The FTSE 100 rose 53.49 points, or +0.50%, to 10,809.94; France's CAC 40 fell 36.07 points, or -0.44%, to 8,244.56; Germany's DAX slipped 11.16 points, or -0.04%, to 25,828.17.
- Crude oil: Brent crude climbed $1.76, or +1.8%, to $97.39 a barrel, while WTI rose $1.91, or +2.1%, to $92.92, with both contracts trading near six-week highs as Middle East supply-risk concerns intensified. Oil prices hit fresh 6-week highs on renewed Middle East tensions
- Gold and dollar: Spot gold advanced +1.2% to $4,437.08 an ounce, while U.S. gold futures rose +1.6% to $4,483.30. The U.S. Dollar Index declined 0.4% to 99.21 as the dollar and Treasury yields eased. Gold advances on softer dollar and yields
2) Hot News
- Futures stay muted as oil and earnings dominate risk appetite Investors weighed a jump in oil prices against mixed corporate earnings, with the Dow contract outperforming while Nasdaq futures remained under pressure from weakness in AI-linked hardware names.
- Middle East tensions keep energy prices elevated Brent and WTI extended gains after fresh U.S. strikes on Iran and renewed Israeli threats against Tehran revived concerns about potential disruption to Middle East energy flows, keeping inflation-sensitive sectors and transportation costs in focus before the opening bell.
- Gold rebounds as dollar and yields pull back The metal extended its rebound from a near one-month low as a softer dollar and Treasury yields improved demand for dollar-denominated and defensive assets amid active geopolitical headlines.
- Earnings reactions show a high bar for AI-linked stocks Snowflake surged after raising its full-year outlook, while Broadcom slipped despite record AI semiconductor revenue, underscoring a market rewarding upside surprises but penalizing guidance that falls short of elevated expectations.
- European markets trade mixed London outperformed while Paris and Frankfurt edged lower, mirroring the U.S. futures backdrop as defensive and value pockets held up better than growth-sensitive areas.
3) U.S. Stock Focus
- Snowflake: Shares jump after Q2 beat and stronger FY2027 outlook Snowflake reported second-quarter revenue of $1.55 billion, up 35% year over year, with product revenue of $1.49 billion, up 37%. The company raised full-year fiscal 2027 product-revenue guidance to $6.07 billion, implying 36% growth, and shares rose more than 20% in pre-market trading.
- Broadcom: Record AI revenue fails to satisfy elevated expectations Broadcom reported fiscal third-quarter revenue of $29.6 billion, up 86% year over year, while AI semiconductor revenue surged 221% to $16.7 billion. Despite the record quarter and a Q4 AI semiconductor revenue outlook of $21.7 billion, the stock fell in pre-market trading as investors focused on whether the forward outlook was strong enough after a major AI-driven rally.
- Hewlett Packard Enterprise: Record Q3 results, but shares slip HPE posted record fiscal third-quarter revenue of $12.2 billion, up 34% year over year, with non-GAAP EPS of $1.11, above its prior outlook range. The company raised its fiscal 2026 and fiscal 2027 outlooks, but shares traded lower pre-market as investors assessed supply constraints and the pace of AI infrastructure demand.
- Five Below: Retailer raises guidance and authorizes $600 million buyback Five Below lifted its full-year fiscal 2026 net sales outlook to $5.63 billion to $5.71 billion and now expects comparable sales growth of 10% to 12%. The board also approved a new $600 million share repurchase program, supporting a positive pre-market reaction after the earnings release.
- NetApp: Strong quarter overshadowed by growth-deceleration concerns NetApp reported record fiscal first-quarter 2027 net revenue of $2.03 billion, up 30%, and record non-GAAP EPS of $2.58. Shares fell about 8% pre-market as investors looked beyond the beat and focused on the implied slowdown in the back half of the fiscal year. NetApp stock sliding pre-open
- Ultragenyx Pharmaceutical: Shares plunge after Angelman syndrome trial failure Ultragenyx dropped more than 40% pre-market after apazunersen failed to meet the main goal and key secondary goals in a late-stage Angelman syndrome study. The setback marks another major clinical disappointment for the company and triggered sharp negative analyst reactions.
- ChargePoint: Revenue grows 18% as losses narrow ChargePoint reported fiscal second-quarter 2027 revenue of $116.1 million, up 18% from a year earlier, with subscription revenue up 10% to $43.7 million. The company's non-GAAP adjusted EBITDA loss narrowed to $4.8 million from $22.1 million a year earlier, highlighting progress on cost control.
- Ciena: AI-driven network demand fuels earnings beat Ciena reported adjusted EPS of $2.11, ahead of the $1.72 consensus estimate, while revenue rose 37% year over year to $1.67 billion. Shares rose about 4.3% pre-market as management pointed to strong AI-driven network investment.
- The Campbell's Company: Weak sales and dividend reset weigh on outlook Campbell's reported fiscal fourth-quarter net sales of $2.1 billion, down 8%, and adjusted EPS of $0.39, down 37%. The company also issued fiscal 2027 guidance below expectations, targeted $500 million in cost savings by fiscal 2030, and reset its dividend to accelerate debt reduction.
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