Market Movements: Pre-Market Analysis
Quantum Stocks Take a Hit
Quantum technology stocks experienced a significant decline this morning following remarks from Mark Zuckerberg, which echoed sentiments previously expressed by Nvidia CEO Jensen Huang. Both leaders suggest that quantum computing could still be a decade away from becoming a viable paradigm. Following this announcement, Rigetti Computing saw its shares plummet by 25%, while D-Wave Quantum and IonQ dropped roughly 16% and 8%, respectively. Quantum Computing also witnessed a 9% decrease.
Managed Care Stocks Rally
In contrast to the quantum stocks, managed care stocks surged after the U.S. government proposed an average total increase of 4.3% for Medicare Advantage reimbursement rates for 2026. Humana’s shares climbed nearly 6%, and both UnitedHealth and CVS Health added around 3% to their stock values.
Boot Barn Surpasses Expectations
Boot Barn is celebrating a notable rise of approximately 4% after providing strong guidance for third-quarter earnings per share. Their expected EPS of about $2.43 exceeds the $2.05 anticipated by analysts surveyed by FactSet. Furthermore, Boot Barn’s projected revenue of $608.2 million is also ahead of the previous consensus of $593.4 million.
Pinterest Faces Downgrade
Shares of Pinterest saw a dip of 3% following a downgrade from Jefferies, which has labeled the company’s growth as "underwhelming." Jefferies has also revised its revenue and EBITDA forecasts for Pinterest for the fiscal year 2025 downward.
Crypto Stocks Decline
Stocks associated with cryptocurrencies fell, as Bitcoin’s price plummeted to around $90,000. Coinbase and MicroStrategy both saw a 4% decrease in premarket trading, while bitcoin mining companies Mara Holdings and Core Scientific saw drops of 4% and 3%, respectively.
Lululemon Shows Strong Demand
In brighter news, Lululemon’s shares gained more than 3%, buoyed by a positive holiday sales report that revealed robust consumer demand. The company has raised its sales and earnings per share forecasts for the fourth quarter, expecting gross margins to improve year-over-year.
Macy’s Guidance Underwhelms
Conversely, shares of Macy’s dropped by 2% following a disappointing fourth-quarter guidance update. The retailer anticipates revenue will be around the lower end of its previous estimate of $7.8 billion to $8.0 billion, with comparable sales projected to be nearly flat compared to expectations of a 0.4% rise.
Abercrombie & Fitch Plummets
Shares of Abercrombie & Fitch tumbled by 11% in premarket trading, despite the company raising its fourth-quarter outlook based on optimistic holiday sales expectations. Although net sales are now projected to grow between 7% and 8%, these expectations are still lower than last year’s figures, indicating a potential slowdown.
Howard Hughes Holdings Sees Gains
In real estate news, Howard Hughes Holdings shares surged by 9% after Bill Ackman’s Pershing Square proposed a merger with the company at a price of $85 per share, marking a significant development in the sector.
Megacap Tech Stocks Decline
Megacap tech stocks faced downward pressure this morning, with rising U.S. Treasury yields compounding losses from the prior week. Nvidia, Tesla, and Palantir Technologies each fell around 3%, while Broadcom and Micron Technology experienced declines of about 2%.
Moderna Shares Plummet
In a significant blow, Moderna saw its shares plunge by 20% after the company revised its 2025 sales outlook downward by approximately $1 billion, citing potential challenges ahead. The firm now anticipates this year’s revenue to fall between $1.5 billion and $2.5 billion, predominantly in the second half of the year.
Intra-Cellular Therapies Soars
Lastly, shares of Intra-Cellular Therapies skyrocketed nearly 34% following Johnson & Johnson’s announcement to acquire the neurological treatment company for $132 per share, valuing it at $14.6 billion. Meanwhile, shares of Johnson & Johnson remained unchanged.
This pre-market analysis highlights the dynamic movements across various sectors, emphasizing the intricate interplay of market forces that continue to shape investor sentiment and stock performance.
