Pre-Market Movers: Chip Giants, Retailers, and Analysts Drive Early Action
U.S. markets opened with mixed signals Wednesday, as a flurry of corporate news and analyst upgrades shaped early trading. From a significant development for a semiconductor titan in China to a beat-and-fade reaction from an apparel leader, here’s a breakdown of the key headlines influencing investor sentiment before the bell.
Technology and Semiconductors Lead the Charge
Nvidia saw its shares rise nearly 1% following a Reuters report that the chipmaker secured approval from the Chinese government to sell its advanced H200 AI chips in the country. The report, citing sources, also indicated the company is preparing a China-specific version of its Groq AI chip. This development addresses a critical market for Nvidia amid ongoing geopolitical trade tensions. Separately, Micron Technology ticked up 2.1% as investors positioned ahead of its fiscal second-quarter earnings report, scheduled for release after the market close on Wednesday.
Retail Results: A Tale of Two Quarters
Macy’s popped 8% in pre-market trade after delivering better-than-expected fourth-quarter results. The retailer reported earnings of $1.67 per share on revenue of $7.64 billion, surpassing the LSEG consensus estimates of $1.53 per share and $7.62 billion in revenue. In contrast, Lululemon provided a cautionary note. While the athletic apparel retailer topped Street expectations for its fiscal fourth quarter, shares declined about 1% after it issued weaker-than-anticipated sales and earnings guidance for full-year 2026. Lululemon projected sales between $11.35 billion and $11.50 billion, below the $11.52 billion consensus, and earnings guidance of $12.10 to $12.30 per share, missing the $12.58 estimate, per LSEG data.
Financials and Payments See Analyst Shifts
Shares of payments technology firm Block jumped more than 2% after two notable analyst upgrades. Rothschild & Co Redburn changed its rating to Hold from Sell after a five-year negative streak, while Truist upgraded the stock to Buy from Hold. Analysts from both firms cited Block’s relatively low price-to-earnings valuation as a key catalyst for the more favorable outlook. Meanwhile, CF Industries declined nearly 4% despite Mizuho slightly raising its price target to $100 from $95. The investment firm downgraded the fertilizer producer to Underperform from Neutral, suggesting concerns about the sector’s fundamentals outweigh the target increase.
Upgrades Across Industrials, Real Estate, and Software
Positive analyst actions lifted several other sectors. Constellation Brands gained 2.5% after Citi upgraded it to Buy from Neutral. The firm highlighted improving topline trends and what it described as a historically low valuation for the alcohol producer. In transportation, Knight-Swift Transportation popped 3% following a UBS upgrade to Buy from Neutral. Analysts there pointed to growing visibility of industry supply reductions and strengthening truckload pricing as primary catalysts.
Commercial real estate saw a boost as well. SL Green Realty, Manhattan’s largest office landlord, gained 2.7% after Deutsche Bank Research upgraded it to Buy from Hold. Analyst Peter Abramowitz, in a note titled “Don’t Sleep On The City That Never Does,” argued that strong execution on asset sales and refinancings would be a positive catalyst, even as the stock remains down more than 42% from its recent high. Finally, in after-hours trading, Docusign gained 2.1% after the software company beat fourth-quarter estimates and provided strong guidance. It forecast first-quarter revenue between $822 million and $826 million, above the LSEG consensus of $813 million.
Reporting contributions: CNBC’s Fred Imbert, Pia Singh, Alex Harring, Davis Giangiulio, Lisa Kailai Han, and Sarah Min.
