July 6th Pre-Market Brief

Good Morning

Tech futures are green after the long weekend and traders are leaning back into the AI names. Two big memory makers report this week, Samsung tomorrow and SK Hynix listing Friday, both core to the AI buildout.

Let’s dig in…

Today's Big Picture

Chips Bounce On Thin Proof
The whole chip group is green today off one number, Foxconn's strong weekend sales. Foxconn builds for Nvidia, so good sales read as real AI demand. That lifts the open but settles nothing. Samsung tomorrow is the first real test.

Oil Has No Floor Yet
You've heard oil is falling for weeks, so here's what's new. Cheap crude usually tempts governments to refill strategic reserves, and that buying puts a floor under prices. This time they're waiting, so the floor isn't there and prices can keep drifting lower. That keeps inflation pressure easing right into Wednesday's Fed minutes.Wednesday's Fed minutes.

Dealmakers Come In Loaded
Five takeovers hit before the bell, from Lockheed's roughly $3.5 billion move on Ultra Maritime to easyJet's $7.3 billion sale to Castlelake. Comcast's Sky is buying ITV's TV arm, Novartis is taking Myrixc Bio, and CNBC parent Versant grabbed golf-sim maker Full Swing for $530 million. Boards don't move this fast unless confidence is high.

Market Overview

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Stock Spotlight (pre-market)

ASML $ASML ( ▼ 4.0% )  

Got a target lift to $2,300 from Bernstein on a record build in both logic and memory capacity for AI. It is the one company every chipmaker depends on for gear, so funds sitting underweight the group have a harder case to stay out.

Lam Research $LRCX ( ▼ 10.19% )  

Led the S&P before the bell after Morgan Stanley raised targets across the chip tool names. Applied Materials and KLA got the same call, so anyone who sold the tool group in last week's slide now watches the analysts mark a bottom.

DataDog $DDOG ( ▼ 1.56% )  

Went the other way after Bernstein cut it to market perform on tough comparisons and non AI growth topping out. Holders who owned it as a clean AI winner have to make that call before the company reports.

T-Mobile $TMUS ( ▲ 2.58% )  

Drew an upgrade to buy from Bank of America, which says the telecom gloom is overdone after the stock's slide since February. Bears who leaned on that weakness now have an analyst telling them the worst is priced in.

Strategy $MSTR ( ▲ 7.9% )  

Firmed premarket on a turnaround meant to rebuild investor trust, but it still tracks bitcoin more than its own news. Anyone holding it has to decide if they own a company or just leveraged crypto.

What to Watch

IPO’s

MarketBeat did an excellent job on this free IPO guide on IPO’s happening this year.

Samsung Earnings (Tuesday)
The world's biggest memory maker reports, with profit expected up roughly eighteen times from a year ago. A print near that number hands the argument to the memory bulls. A miss, and this morning's bounce gets tested fast.

SK Hynix U.S. Listing (Prices Thursday)
A roughly $28 billion Nasdaq listing, one of the biggest on record. It prices Thursday and trades Friday. Buyer appetite here is a live read on the whole AI trade.

SpaceX Joins The Nasdaq-100 (At Today's Close)
The sleeper. SpaceX enters the index Tuesday, so Nasdaq-100 funds must buy it at today's closing price. Expect a burst of late-day volume, though a small float keeps the starting weight tiny.

- John

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