Data on Stocktwits showed retail sentiment is leaning ‘bearish’ on SPY and QQQ.
- Wall Street resumed trade after the Presidents’ Day break to find a market still grappling with the ‘AI disruption’ trade.
- Geopolitical risks resurface ahead of U.S.-Iran nuclear talks in Geneva.
- Hapag-Lloyd has signed a definitive agreement to acquire ZIM Integrated Shipping for $4.2 billion.
U.S. stock futures were sharply lower early Tuesday as Wall Street resumed trade after the Presidents’ Day break, with ‘AI disruption’ trade fears lingering. Investors are also tracking the release of Fed minutes later this week.
As of 3:00 a.m. ET on Tuesday, Nasdaq futures fell 0.6%, Dow futures were down 0.2%, S&P 500 futures fell 0.3%, and Russell 2000 futures were lower by 0.7%.
Meanwhile, retail sentiment toward the SPDR S&P 500 ETF (SPY), an exchange-traded fund that tracks the S&P 500 Index, has remained ‘bearish’, while the Invesco QQQ Trust (QQQ) ETF, which tracks the Nasdaq 100 Index, has moved to ‘bearish’ from ‘extremely bearish’ last week amid high message volumes.
In commodities, gold and silver edged lower ahead of the high-stakes U.S.-Iran talks in Geneva. Retail sentiment on Stocktwits for both the iShares Silver Trust (SLV) and SPDR Gold Shares (GLD) remains ‘bearish’ amid low chatter.
Trending Stocks To Watch
ZIM Integrated (ZIM): The stock will be in the spotlight today after the $4.2 billion Hapag-Lloyd acquisition over the weekend. The deal has been made at a 58% premium to its recent close.
Ocular Therapeutix (OCUL): The company is set to release Phase 3 topline results for Axpaxli in wet age-related macular degeneration (AMD) at 8:00 AM ET today.
Eli Lilly (LLY): It has reported positive Phase 3 results for Retevmo in early-stage lung cancer.
Apple (AAPL): Announced a major push into video podcasting, challenging Spotify and YouTube. Also, reports indicate a March 4 ‘Experience’ event featuring low-cost MacBooks.
Alibaba (BABA): The company has unveiled an upgraded AI model (QWEN) that can analyze videos up to two hours long and handle multimodal inputs.
Walt Disney (DIS): It has reportedly sent a cease-and-desist letter to ByteDance over alleged use of its IP in AI video model training.
Warner Bros Discovery (WBD): The company is reportedly reopening sales talks with Paramount Skydance (PSKY). The board is weighing a superior offer that could potentially ignite a secondary bidding war with Netflix (NFLX).
Tripadvisor (TRIP): Starboard Value is making a majority slate nomination at the company, where it holds over 9% stake.
Norwegian Cruise Line (NCLH): Activist hedge fund Elliott Investment Management has reportedly built a stake of over 10% and is seeking to address underperformance.
Other tickers trending on Stocktwits at the time of writing included ImmunityBio (IBRX), Gamestop Corp (GME), Pagaya Technologies (PGY), and Tilray Brands (TLRY), among others.
Other Catalysts To Watch
On the economic front, investors will be monitoring the release of ADP Weekly Employment Change at 8:15 am ET, followed by the Empire State Manufacturing Index at 8:30 am. Fed Governor Michael Barr and San Francisco Fed President Mary Daly are also scheduled to speak today.
On the earnings radar, investors will be watching for the quarterly reports from Medtronic (MDT), LabCorp (LH), Leidos (LDOS), and Howmet Aerospace (HWM) before the bell. Meanwhile, Palo Alto Networks (PANW), Devon Energy (DVN), Cadence Design (CDNS), and Toll Brothers (TOL), among others, report earnings after market close today.
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