Stock futures fell on Wednesday as Wall Street returned from the Independence Day holiday with weak services activity data in China weighing on sentiment. Later in the trading day, investors will be watching the minutes of the Federal Reserve’s June meeting.
Amazon.com (stock ticker: AMZN) fell 0.3% in premarket trading and Microsoft (MSFT) fell 0.7% after a report from The Wall Street Journal said the US is preparing to restrict Chinese companies’ access to US cloud computing services. If adopted, the rule would likely require Amazon and Microsoft to obtain approval from the US government to provide cloud services that use advanced artificial intelligence chips to Chinese customers, the paper reported.
The move from the Biden administration follows China’s announcement on Monday that it was restricting exports of gallium and germanium, two key elements in semiconductor production.
Rivian Automotive (RIVN) rose 7.8% after the electric car maker’s second-quarter production nearly tripled. Rivian produced 13,992 electric vehicles in the period and sold 12,640 units. The stock rose more than 17% on Monday, the day the production numbers were released.
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Lumentum (LITE) fell 4.5% after downgrading shares of the commercial laser maker to Underweight from Equal Weight at Barclays.
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United Parcel Service (UPS) fell 2.6% in pre-market trading after the Teamsters consortium said contract talks with the shipping giant’s management had stalled.
Coinbase Global (COIN) fell 2.1% to $78.25 in premarket trading after shares of the cryptocurrency exchange were downgraded to Neutral from Overweight on Piper Sandler.
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Target price lowered to $60 from $65.
Biomarine Pharmacy
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(BMRN) rose 2.1% after the biopharmaceutical company was upgraded to Outperform from Market Perform at BMO Capital.
Netflix (NFLX) rose 0.8% to $444.85 in pre-market trading as shares of the streaming giant were upgraded to neutral from a sell-off by analysts at Goldman Sachs, who also boosted their share price target to $400 from $230. Netflix reports second quarter earnings on July 19th.
Tesla shares (TSLA) fell 0.4 percent in pre-market trading. Shares jumped 6.9% on Monday after the company delivered a record number of electric vehicles in the second quarter and blew expectations.
Write to Joe Woelfel at [email protected]
“Infuriatingly humble alcohol fanatic. Unapologetic beer practitioner. Analyst.”