Stock futures were sliding Tuesday as investors questioned how much longer the artificial-intelligence rally can last.
These stocks were poised to make moves Tuesday:
Palantir Technologies dropped 7.5% in premarket trading even as the company, which sells artificial-intelligence software to manage and analyze large amounts of data, reported third-quarter earnings that beat analysts’ estimates and revenue jumped 63% from a year earlier to a record $1.8 billion. Growth at Palantir’s U.S. business soared 77%. Palantir boosted its fiscal-year guidance, saying it expects revenue of up to $4.4 billion, an increase from prior guidance of $4.14 billion to $4.15 billion.
Sarepta Therapeutics plummeted 37% after the biotechnology company disclosed disappointing drug-trial data for treatments for Duchenne muscular dystrophy that could lengthen the timeline of the regulatory approval process. The data overshadowed a narrower-than-expected third-quarter loss.
Vertex Pharmaceuticals reported third-quarter adjusted profit of $4.80 a share as revenue gained 11% to $3.08 billion. Both metrics topped analysts’ forecasts. Revenue jumped 15% in the U.S., getting a lift from strong demand and higher pricing for Vertex’s cystic-fibrosis drugs. The stock, however, fell 4.1%.
Amazon.com slid 1.9% ahead of the opening bell. The stock closed at a record high Monday of $254 on Monday, rising 4% after Amazon reached a $38 billion agreement for its cloud-computing arm, Amazon Web Services, to provide infrastructure for ChatGPT maker OpenAI’s artificial-intelligence workloads. The partnership covers the next seven years.
Kimberly-Clark fell 0.9% and Kenvue declined 0.7%, a day after Kimberly-Clark agreed to buy the Tylenol maker for more than $40 billion. Kenvue shareholders will receive $21.01 a share under terms of the deal. One of the biggest takeovers of the year wasn’t welcomed by Wall Street, in Kimberly-Clark’s case anyway.
Sanmina jumped 10% after the manufacturing services provider issued earnings and revenue guidance for its current fiscal first quarter that was better than analysts’ estimates.
Fabrinet, which makes certain optical cables for Nvidia, jumped 9.7% after fiscal first-quarter earnings beat Wall Street estimates and adjusted earnings and revenue guidance for the second quarter also topped forecasts.
Clorox beat fiscal first-quarter adjusted earnings expectations and maintained that its guidance for fiscal 2026 sales would decline between 6% to 10%. Shares of the cleaning-products company rose 1.7%.
Starbucks slipped 0.5% after the coffee chain struck a deal to help its operations in China, where it has approximately 8,000 stores. It’s selling a majority stake in the unit to private-equity firm Boyu Capital.
Earnings reports are expected Tuesday from Advanced Micro Devices, Shopify, Uber Technologies, Arista Networks, Super Micro Computer, Amgen, Pfizer, Spotify, and Ferrari.
Chip maker AMD was down 2.3% ahead of earnings scheduled for after the closing bell Tuesday. Wall Street expects AMD to report third-quarter profit of $1.17 a share on revenue of $8.76 billion. Morgan Stanley analyst Joseph Moore said he expects AMD “should have a very strong data center quarter, given strong server demand and Intel’s [supply] constraints.”
Pfizer slipped 0.1% in the premarket session. Analysts expect Pfizer to post third-quarter earnings Tuesday of 63 cents a share on share on revenue of $16.5 billion. Shares of the drugmaker have declined nearly 60% since the end of 2021 as a number of its top products approach the end of their patent lives, the market for Pfizer’s Covid-19 vaccine and antiviral has contracted, and various efforts to bulk up its pipeline have failed to excite investors.