Stock futures are pointing to a mixed open for major indexes after the Dow closed at another record high yesterday; SpaceX has reached the expiration of its first lock-up period, putting many more shares on the market; shares of Western Digital and Sandisk are tumbling following the release of quarterly results from the memory chip makers; Honeywell Aerospace shares are sinking after a lackluster earnings report; and Moderna shares are gaining on the news of FDA approval for its mRNA-based flu shot. Here’s what you need to know today.
Stock Futures Mixed After Dow Hits Another Record
Futures are mixed this morning, as weakness in memory stocks weighs on the tech sector (more on that below). Futures tied to the Dow Jones Industrial Average and the S&P 500 were recently up 0.2% and 0.1%, respectively, while futures linked to the tech-heavy Nasdaq fell 0.6%. The Dow, which has gained nearly 2,800 points over the past five sessions, closed at a record high yesterday for the third day in a row. The S&P 500 touched an all-time high during yesterday’s session, but finished the day lower, while the Nasdaq also fell as shares of SpaceX (SPCX) and Advanced Micro Devices (AMD) plunged following their earnings reports. WTI oil futures were up 1% to $76 a barrel recently as investors keep tabs on developments related to a possible Iran peace deal. Gold futures were up slightly at $4,315 an ounce, while bitcoin was little changed at $64,400. The yield on the 10-year Treasury note rose to 4.64% from yesterday’s close of 4.62%.
SpaceX’s First Lockup Period Expires Today
SpaceX (SPCX) shares could be set to face even more volatility. Today is the expiration of the first lock-up period following the company’s IPO in mid-June, freeing up more than 900 million shares from trading restrictions. While some have worried that the stock could take another hit as shares held by insiders and other pre-IPO investors become available, other experts recently told Investopedia that they wouldn’t be so sure. It’s not clear how many early investors will want to sell shares immediately, and this the first of several lock-up expiration dates. SpaceX shares were up more than 2% in premarket trading, after dropping 14% yesterday to their lowest close ever. Coming into today’s session, the stock is down 20% from its IPO price, and has fallen 52% from the record high set just a few days after the IPO.
Shares of Sandisk, Western Digital Tumble
Shares of Sandisk (SNDK) and Western Digital (WDC) are plunging this morning despite quarterly results from the memory chip makers that topped Wall Street estimates. Sandisk reported $8.97 billion in revenue for its fiscal fourth quarter, along with adjusted earnings of $39.25, each handily topping what analysts had forecast. Western Digital’s results also beat estimates, though by a narrower margin. However, Sandisk issued revenue and profit guidance that came in short of what analysts expected, and Western Digital’s outlook, while slightly better than estimates, also appears to have disappointed investors. Western Digital shares were down 14% ahead of the opening bell, while Sandisk dropped 11%. The Roundhill Memory ETF (DRAM) was down 7%.
Honeywell Aerospace Stock Plunges on Weak Outlook
Shares of Honeywell Aerospace (HONA) fell after the former Honeywell (HON) division disappointed in its first earnings report since being spun off back in June. The aerospace parts manufacturer said after the bell yesterday that it earned an adjusted $1.87 on $4.52 billion in sales in its second quarter, each falling short of the Visible Alpha consensus. The company also trimmed its full-year outlook, now aiming for organic sales growth of 4% to 5%, down from 7% to 9% previously. CEO Jim Currier said the company believes “it is prudent to align our guidance to our supply chain’s demonstrated capabilities.” Honeywell Aerospace shares were down 17% recently, on track to hit a record low.
Moderna Stock Rises on FDA Approval of mRNA Flu Vaccine
Moderna (MRNA) shares are gaining after the drugmaker announced that it has received Food and Drug Administration approval for mFLUSIVA, its vaccine against the flu that is based on the same mRNA technology that was used in developing the COVID-19 vaccine. The new flu shot will be available at certain retailers in the coming weeks, the company said. The vaccine is Moderna’s fifth product approved globally as it has worked to get more products to market after demand for the COVID vaccine fell off. Moderna shares were up 4% in recent premarket trading. Entering today, the stock had gained 90% since the start of the year, but was still nearly 90% below its August 2021 peak.
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