Broad Market Performance
Dow Jones Industrial Average futures are rising slightly after rising on Monday, when the stock was the only major U.S. stock index to close in positive territory. S&P 500 futures are nearing flat, while Nasdaq 100 futures are up slightly, signaling a possible recovery for tech stocks.
The divergence between value and growth stocks became more pronounced in Monday trading as investors shifted away from tech stocks and toward more defensive sectors, helping send the Nasdaq Composite and Nasdaq 100 indexes to their worst one-day declines since April.
EU targets Microsoft bundling practices
The European Commission has notified Microsoft that its practice of bundling Teams with its Office products may violate EU antitrust rules, a development that has put some pressure on Microsoft shares in pre-market trading.
SolarEdge and PoolCorporation Face Headwinds
SolarEdge Technologies fell 13% after announcing a $300 million convertible bond offering. Pool Corporation fell 11% after lowering its guidance, signaling potential challenges in the pool supply industry.
Other notable developments
- Sea Limited: Down 3.9% after JPMorgan downgrade
- Penn Entertainment: Down 2% after Raymond James downgrade
- Walt Disney: Slight increase after Goldman Sachs initiates buy recommendation
- Enerpac Tools Group: Sales fall by more than 9% on forecast cuts
Sector Watch
Fluctuations in crude oil prices could boost activity in the energy sector. Financial stocks may also be in focus as investors assess the impact of recent economic data on the outlook for the Federal Reserve's monetary policy.
