Pre-Market Update: Tech Heavyweights Lead the Way on February 21st

As we kick off the shortened week on Wall Street, tech heavyweights are leading the charge in the pre-market session. U.S. stock futures are lower, with the Nasdaq 100, Dow Jones Industrial Average, and S&P 500 all posting losses. However, tech stocks are bucking the trend, with several companies reporting significant gains.

One of the standout performers is Nvidia (NVDA), which is set to report earnings after the market close. The chipmaker and AI-play has seen its stock fall 4% in Tuesday's trading session, but it remains up 40% year-to-date and more than 200% over the past 12 months. Investors are eagerly awaiting the company's earnings report, as sentiment on Wall Street seems shaky.



Another notable development is the replacement of Walgreens Boots Alliance (WBA) by Amazon (AMZN) in the Dow Jones Industrial Average. The swap is an effort to rebalance the price-weighted measurement of 30 stocks with increased consumer retail exposure after Walmart's 3-for-1 stock split lowered its weight. JetBlue Airways (JBLU) will also be removed from the Transportation average, replaced by ride-hailing company Uber (UBER).

In the sports streaming market, a new joint venture between Disney, Fox, and Warner Bros. Discovery is facing its first challenge. FuboTV (FUBO) has filed a lawsuit against the media giants, alleging extreme suppression of competition in the U.S. sports-focused streaming market. The joint venture aims to offer sports fans a skinnier option to the traditional pay-TV bundle, but it has raised concerns among traditional cable players and now, sports streamer FuboTV.



American Airlines (AAL) has announced an increase in baggage fees for the first time since 2018. Travelers can now expect to pay $35 for their first checked bag if they purchase the option in advance or $40 if they opt in at the airport. A second checked bag will now cost $45, either in advance or in person. The airline cited the significantly higher cost of transporting bags in recent years as the reason for the increase.

As we head into the trading day, investors should keep a close eye on tech stocks, as they have been the driving force behind the market's recent performance. Additionally, the earnings report from Nvidia and the ongoing developments in the sports streaming market could provide further direction for the market.

In conclusion, the pre-market update for February 21st is dominated by tech heavyweights, with Nvidia leading the way ahead of its earnings report. The replacement of Walgreens by Amazon in the Dow Jones Industrial Average and the lawsuit filed by FuboTV against the Disney-Fox-Warner Bros. Discovery joint venture are also notable developments to watch. As the market continues to evolve, investors should stay informed and adapt their strategies accordingly.