Live Nasdaq Composite: Markets Take a Breather amid Stellar AI Earnings Cycle
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JPMorgan raised its S&P 500 target citing an AI earnings supercycle, with markets near all-time highs but showing little conviction heading into the open.
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Marvell extended its record 32% single-day surge with another 13% premarket gain, while Netflix trades 8% lower despite a 56% EPS improvement since Q4 2024.
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SpaceX IPO Details, Uber Layoffs
SpaceX has set its IPO price target at $135 per share, a figure that would place the company’s valuation in line with the record-setting numbers the Elon Musk-led space giant has been telegraphing ahead of Thursday’s roadshow kickoff.
Uber (NYSE:UBER | UBER Price Prediction) is trimming its workforce, announcing a 23% reduction in its People division, which comprises HR, recruitment, workplace facilities, and culture functions, according to Bloomberg. The cuts reflect a broader push across corporate America to streamline back-office operations as companies look to manage costs in an environment where efficiency has become as important a metric as growth.
Morgan Stanley Bullish on Memory
Morgan Stanley is doubling down on the memory chip trade, lifting its price target on Micron (NASDAQ:MU) to $1,050 from $520 and raising SanDisk (NASDAQ:SNDK) to $1,750 from $1,100, with both names kept at Overweight ratings. The analysts pointed to tightening memory supply, strong momentum carried over from last year, and a view that memory stocks have the runway to continue outpacing the broader market as the core pillars behind the upgraded targets.
The Nasdaq Composite has turned negative, falling 0.38% as of mid-morning trading.
PANW Stock Falls
Palo Alto Networks (NASDAQ:PANW) is trading lower in premarket action despite delivering a Q3 report that cleared expectations across the board. Revenue came in at $3.0 billion against the $2.94 billion estimate for a 31% year-over-year gain, while adjusted EPS of $0.85 topped the $0.80 consensus. Next-Generation Security ARR reached $8.1 billion, up 60% year over year, and remaining performance obligations climbed 36% to $18.4 billion, reflecting a healthy pipeline of committed future revenue. FY guidance was raised above Street expectations on both the top and bottom lines, with the company projecting revenue of $11.42 billion to $11.43 billion versus the $11.29 billion estimate and adjusted EPS of $3.77 to $3.79 against a $3.70 consensus. The premarket pullback to around $290.50 appears to reflect a market that had already priced in a strong quarter rather than any fundamental concern with the results.
This article will be updated throughout the day, so check back often for more daily updates.
The markets are cradling all-time highs, though futures are offering little conviction heading into the open. Nasdaq Composite and S&P 500 futures are hugging the flatline in early trade, while Dow futures are slipping about 180 points, or 0.3%, as a fresh round of Middle East headlines keeps traders from leaning too hard in either direction. Oil prices are rising, with WTI Crude up 2.7% to over $96/barrel. JPMorgan has reportedly increased its S&P 500 target in response to what it has described as an earnings “supercycle” due to robust AI demand.
Overnight developments are injecting a note of caution into the market backdrop. President Trump said Iran had agreed to forgo nuclear weapons, though he left the door open by adding that the country could change course, a qualifier that markets will be watching closely as ceasefire negotiations continue to hang in the balance.
On the economic front, private payrolls grew by 122,000 in May, topping the 110,000 consensus estimate and marking the strongest month of hiring since January 2025, according to ADP. Notably, gains were broad-based across eight of the ten sectors tracked, a shift from recent months when job growth had been concentrated largely in healthcare.
Here’s a look at where things stand as of pre-morning trading:
Dow Jones Industrial Average: 51,169 Down 0.45%
Nasdaq Composite: 30,726 Up 0.04%
S&P 500: 7,607 Down 0.21%
Market Movers
Marvell Technology (NASDAQ:MRVL) is adding to an already historic run, advancing more than 13% in premarket trading Wednesday on the heels of its best single session on record Tuesday, when the chipmaker vaulted 32%. The back-to-back move is cementing Marvell’s status as one of the market’s defining AI trades of the moment.
Netflix (NASDAQ:NFLX) is one of the market’s more puzzling disconnects right now. The stock is down more than 8% year to date, trailing the S&P 500 by 20 percentage points and lagging the Nasdaq by 30, yet the underlying business tells a meaningfully different story. Shares are trading right around the same $83 level they occupied in Q4 2024, but earnings per share have climbed from $1.99 to $3.10 over that same stretch, a 56% improvement in profitability that the stock price has entirely failed to reflect.
Novo Nordisk (NYSE:NVO) is expanding its weight-loss franchise beyond U.S. borders, launching its oral Wegovy pill in the United Arab Emirates in what marks the drug’s first international rollout outside the United States.
Gerelyn Terzo is the author of dividend investing handbook "Dividend Investing Strategies: How to Have Your Cake & Eat It Too." A veteran financial journalist, she covers agri-finance for outlets like Global AgInvesting and the broader stock market and personal finance for 24/7 Wall Street. She began at CNBC and later helped launch Fox Business in New York. Gerelyn currently resides in Woodland Park, Colorado and dabbles in nature photography as a hobby.
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