Morning Brief | Stock Futures Broadly Down, Awaits Tesla Earnings Report

Pre-market Movers

Ahead of Monday's trading, the three major U.S. stock index futures were fall, with Dow futures down 0.22%, S&P 500 futures down 0.29% and Nasdaq 100 futures fall 0.50% at press time.

Tesla shares fell in pre-market trading after a disappointing Robotaxi launch event, with earnings reports set to be released this week.

Alibaba dropped over 2% in pre-market trading as JPMorgan recently reduced its stake in the company, cashing out HK$5.2 billion (approximately $667 million).

Market Watcher

According to the latest Bloomberg Markets Live Pulse survey, this year's robust rally in US stocks is expected to continue into the final months of 2024, despite the uncertainty surrounding the upcoming presidential election.

The S&P 500 Index is projected to approach the 6,000 mark by year-end, representing a record high that is 2.3% above last Friday's close, based on the median estimates from 411 survey participants.

Notably, three-quarters of respondents believe this earnings season will provide a significant boost to the benchmark, with Corporate America's performance deemed more critical to market outcomes than the election results or the Federal Reserve's policy decisions.

Pre-market Headlines

S&P 500  next 10 years annual Return only 3%! Goldman Sachs Warns

Goldman Sachs strategists predict that U.S. stocks will struggle to maintain the strong performance seen over the past decade, with the S&P 500 expected to yield only a 3% annualized nominal total return over the next 10 years. This is a significant decline from the previous decade's 13% average and below the long-term average of 11%. They anticipate a 72% chance that the S&P will underperform Treasury bonds and a 33% likelihood of trailing inflation by 2034. The report notes that while recent gains have been driven by major tech stocks, broader market performance is expected to improve in the coming years, with equal-weighted indices potentially outperforming market-cap weighted ones. 

Activist Starboard Holds Kenvue Stake and Seeks Changes --- WSJ

Activist investor Starboard Value has built a stake in consumer-products company Kenvue Inc., seeking changes that would boost the Tylenol maker's stock price, according to Wall Street Journal.

Starboard believes Kenvue — spun out of Johnson & Johnson last year — has some of the best consumer brands in its industry, yet its stock has underperformed peers and the broader market since its debut,, citing unidentified people familiar with the matter.

AI Search Startup Perplexity in Talks for $9 Billion Valuation

Perplexity AI is in early talks to raise funding from investors at a valuation of about $9 billion, according to familiar person told Bloomberg. The company is seeking to raise more than $500 million in the funding round

World at A Glance

Musk's election promise of $1 million daily giveaway sparks call for probe

Pennsylvania Governor Calls for Investigation into Elon Musk's $1 Million Daily Giveaway Ahead of Election

Pennsylvania Governor Josh Shapiro urged law enforcement to investigate Elon Musk's promise to give $1 million daily to registered voters until Election Day. Shapiro raised concerns about Musk using his wealth to influence the tight presidential race between Trump and Kamala Harris.

Chinese Banks Slash Lending Rates to Bolster Ailing Economy

Chinese banks cut their benchmark lending rates aimed at reviving economic growth and halting a housing market slump. The one-year loan prime rate was lowered to 3.10% from 3.35%, while the five-year LPR was reduced to 3.60% from 3.85%.

The larger-than-expected LPR cuts are meant to contribute to the stabilization of the property market, according to Bruce Pang, chief economist for Greater China at Jones Lang LaSalle Inc.

Today's Analyst Stock Ratings

Financial Calendar