Good Morning Traders! S&P 500 charging toward history! Futures climbed 0.3%, targeting 7,000 for the first time ever, while Nasdaq futures surged 0.6%. Markets shrugged off shutdown fears as investors focused on a monster earnings week featuring four Magnificent Seven companies
Here are the highlights for today:
The precious metals rally cooled as tensions appeared to ease. Gold slipped 0.1% to $5,076 after Monday's historic break above $5,000, while silver dropped 3.6% to $111. The dollar recovered 0.2% as the "sell America" trade paused. 10-year Treasury yield ticked up 1 basis point to 4.22%.
Health insurers got obliterated. Humana crashed 14%, UnitedHealth plummeted 9%, CVS Health dropped 9.4%, and Elevance fell 6.6% after CMS proposed nearly flat 2027 Medicare Advantage payments at just 0.09% increase versus the 4-6% analysts expected. Total increase: only $700M.
The proposed rates mark a devastating blow to the sector. While CMS said risk-score trends would push effective payment increases to 2.54%, the headline rate fell dramatically short of Wall Street expectations, making health insurers the S&P 500's four biggest pre-market losers.
Micron Technology surged 4.2% after announcing a $24 billion investment in Singapore over the next decade for a new advanced wafer fabrication facility. The plant will provide 700,000 square feet of cleanroom space with wafer output starting in H2 2028 to meet growing NAND demand driven by AI.
Other memory stocks rallied in sympathy. Sandisk jumped 3.1%, Western Digital rose 3%, and Seagate Technology gained 2.4% ahead of its fiscal Q2 earnings due after the close. SK Hynix shares in Korea hit an all-time high, surging 8.7% on reports it's the sole supplier for Microsoft's new AI chip.
Salesforce gained 2% after its Computable Insights unit won a massive $5.6 billion, 10-year contract to modernize U.S. military operations with cloud tools, AI, and data analytics. The deal positions Salesforce as a key tech partner for the Department of War through June 2035.
Zoom Communications rose 1% after Baird highlighted its under-the-radar $51M stake in Anthropic as a "hidden gem" that could add meaningful value as AI adoption accelerates. The early investment in the maker of Claude models provides an additional upside lever beyond Zoom's core business.
CoreWeave jumped 6.2% after surging 5.7% Monday on its expanded partnership with Nvidia that includes a $2 billion investment from the chip maker. Deutsche Bank upgraded the stock to Buy with a $140 price target, citing a "solid" medium-term outlook
Sanmina tumbled 8% despite beating Q1 estimates after issuing disappointing Q2 sales guidance. The company expects $3.1B-$3.4B revenue (midpoint $3.25B) versus $3.51B consensus, though EPS guidance of $2.25-$2.55 topped expectations at the midpoint.
Boeing slipped 0.3% ahead of Q4 earnings, with Wall Street expecting a 44-cent loss on $22.6B revenue. The aerospace giant hasn't produced a full-year profit since 2018, the year before the second fatal 737 MAX crash grounded the jet worldwide through November 2020.
Microsoft won approval for 15 additional data centers in Mount Pleasant, Wisconsin near an existing facility. The two development plans call for almost 9 million square feet of building area with taxable value exceeding $13 billion. The village board unanimously approved both plans Monday.
Google agreed to pay $68M to settle a lawsuit alleging its voice-activated assistant illegally recorded and spread private conversations after being triggered, sending users targeted advertising. The class action settlement requires approval from U.S. District Judge Beth Labson Freeman.
This week is pivotal for 2026's market narrative. The Fed announces rates Wednesday (expected hold at 3.50%-3.75%), with Powell's presser scrutinized for cut timing. Earnings explode: Boeing, UNH, GM, UPS, RTX, Texas Instruments today; Microsoft, Meta, Tesla Wednesday; Apple Thursday; Exxon, Chevron Friday.
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