GOOGL Plans to Issue $20B in Bonds, Delayed Economic Data Ahead
U.S. stock futures are flat ahead of the Wall Street open with the Dow Index ($DJI) at record highs and the benchmark S&P 500 (SPX) only around 0.5% off all-time highs. The moves come after a second straight day of gains led by tech stocks, building on their Friday comeback and helping lift the overall market.
On the corporate front, Alphabet (GOOGL) plans to issue $20 billion in its biggest ever U.S. dollar bond sale. It’s also planning debut deals in Switzerland and the UK, including a rare sale of 100-year bonds, marking the first time a tech company has tried such an offering since the dotcom frenzy of the late 1990s.
The big borrowing spree comes just days after tech companies from Meta Platforms (META) to Amazon (AMZN) said they were ramping up spending to meet their ambitious artificial intelligence plans.
Along with earnings from Coca-Cola (KO), Spotify (SPOT) and CVS (CVS) this morning, investors will watch delayed economic data including Retail Sales.
Snapshot (as of 7 AM ET)
- Oil (/CL) – Oil prices are flat near $64.30 a barrel as traders gauge the potential for supply disruptions after U.S. guidance for vessels transiting the Strait of Hormuz kept attention squarely on tensions between Washington and Tehran. Prices rose more than 1% on Monday, when the U.S. Department of Transportation’s Maritime Administration advised U.S.-flagged commercial vessels to stay as far from Iran’s territorial waters as possible and to verbally decline Iranian forces permission to board if asked.
- Gold (/GC) – Gold Futures are down 0.6% near $5,050, though holding above the $5,000-per-ounce level, as investors stay cautious ahead of key U.S. jobs and inflation data due later this week that would provide cues to the U.S. Federal Reserve’s interest rate trajectory.
- Bitcoin (/BTC) – The Crypto Future is down 3.3% near 68,600 in premarket trading.
- VIX – The CBOE Volatility Index was down 2.25% on Monday and settled at 17.36 as stocks were higher.
- U.S. Dollar (/DX) – The dollar is up slightly to 96.8.
Biggest Premarket Movers (as of 7 AM ET - Mark % Change)
- Datadog (DDOG): +9.47%
- Vistra (VST): +3.29%
- Applovin (APP): +2.96%
- Qnity Electronics (Q): +2.66%
- Take-Two Interactive (TTWO): +2.52%
- S&P Global (SPGI) -13.95%
- Moody's (MCO): -6.59%
- FactSet (FDS): -6.01%
- Xylem (XYL): -4.07%
- MSCI (MSCI): -4.00%
Economic Data
- 6:00 AM ET: NFIB Small Business Optimism Index
- 8:30 AM ET: Retail Sales - Delayed, Employment Cost Index - Delayed, Import/Export Prices - Delayed
- 10:00 AM ET: Business Inventories
- 12:00 PM ET: Fed’s Hammack Speaks
- 1:00 PM ET: Fed’s Logan Speaks, 3-Year Note Auction
Notable Earnings
- Premarket: ARMK, AZN, BP, KO, CVS, DDOG, DUK, DD, ECL, FISV, HOG, HAS, HMC, INCY, MAR, OSCR, DGX, PHG, SPGI, SAIA, SPOT, WMB, XYL, ZBH
- Postmarket: AIG, ANGI, AIZ, ALAB, NET, EW, F, FRSH, GILD, GXO, JHX, KVYO, LYFT, MAT, OI, PEGA, HOOD, TDC, UPST, WELL, ZG
- Premarket Tomorrow: BWA, CHEF, FNMA, ULCC, GNRC, GFS, HLT, HUM, KHC, LAD, MLM, MCD, NTES, NI, PSN, PAG, R, SN, SHOP, SW, TMUS, THC, TMHC, TEX, TSEM, U, VRT, WAB
- Postmarket Tomorrow: ALB, AMCX, AR, APP, CSCO, CGNX, CPA, CW, FSLY, HUBS, IFF, MFC, MSI, NBR, NE, PAYC, PPC, PRCH, QTWO, QS, ROL, TYL
Upgrades/Downgrades
- MoffettNathanson upgrades Shopify (SHOP) to Buy from Neutral
- Daiwa upgrades Palantir (PLTR) to Buy from Neutral
- Gordon Haskett upgrades Booking Holdings (BKNG) to Buy from Hold
- Benchmark downgrades On Semi (ON) to Hold from Buy
- Citizens downgrades ZoomInfo (GTM) to Underperform from Market Perform
- Citi downgrades Under Armour (UAA) to Sell from Neutral
