Stock futures fell on Wednesday as Wall Street returned from the Independence Day holiday and weak China services activity data weighed on sentiment. Later in the trading day, investors will follow the minutes of the June Federal Reserve meeting.
Amazon.com (Ticker: AMZN) shed 0.3% in premarket trade and Microsoft (MSFT) fell 0.7% after a Wall Street Journal report said the US is preparing to allow Chinese companies access to US -Restrict American cloud computing services. If the rule is passed, Amazon and Microsoft would likely need to seek US government approval to offer Chinese customers cloud services that leverage advanced artificial intelligence chips, the Journal reported.
The Biden administration’s move would follow China’s announcement on Monday that it would limit exports of gallium and germanium, components vital to semiconductor production.
Rivian Automotive (RIVN) rose 7.8% after the electric vehicle maker’s production nearly tripled in the second quarter. Rivian manufactured 13,992 electric vehicles and sold 12,640 units during this period. On Monday, the day production numbers were released, the stock was up more than 17%.
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Lumentum (LITE) fell 4.5% after shares of the commercial laser maker were downgraded from equal weight to underweight by Barclays.
United Parcel Service (UPS) tumbled 2.6% in premarket trading after Teamsters Union said contract negotiations with the shipping giant’s management had stalled.
Coinbase Global (COIN) fell 2.1% to $78.25 in premarket trading after shares of the crypto trading platform were downgraded to neutral from overweight by Piper Sandler. Price target lowered to $60 from $65.
BioMarin Pharmaceutical
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(BMRN) rose 2.1% after the biopharmaceutical company was upgraded from Market Perform to Outperform by BMO Capital.
Netflix (NFLX) is up 0.8% to $444.85 in premarket trade as the streaming giant’s shares were upgraded to neutral from ‘sell’ by analysts at Goldman Sachs, who also shared the target price of the stock from $230 to $400. Netflix reports second-quarter results on July 19.
Tesla (TSLA) fell 0.4% in premarket trading. Shares rose 6.9% on Monday after the company shipped a record number of electric vehicles in the second quarter, beating expectations.
Write to Joe Woelfel at [email protected]