U.S. stock markets are anticipated to open lower as traders return from a holiday-shortened week, with concerns surrounding artificial intelligence causing a downturn, particularly in the tech sector. The Nasdaq is expected to suffer slightly more than the S&P 500 as reports of ongoing disruptions affect tech giants. Notably, Palo Alto Networks has announced its acquisition of Israeli cybersecurity startup Koi, which specializes in endpoint security. This topic is expected to be a talking point during tonight’s post-earnings conference call.
In corporate news, the Wall Street Journal revealed that activist investor Elliott Investment Management has acquired over a 10% stake in Norwegian Cruise Line, aiming to revitalize the company’s performance. Following this revelation, shares of Norwegian Cruise Line’s parent company soared by more than 6%.
Chevron received a boost from Melius, which upgraded the energy company’s rating to “buy” from “hold,” with a revised price target of $205, up from $162. Analysts believe Chevron is strategically positioned to enhance shareholder returns, particularly benefiting from developments in Venezuela.
Apple has generated buzz by inviting media to a “special Apple experience” event set for March 4 in New York City, London, and Shanghai. Rumors suggest that the tech giant may introduce new products, including a lower-cost iPhone, a faster iPad, and an affordable MacBook.
Netflix has granted Warner Bros. Discovery a seven-day waiver to resume negotiations with Paramount Skydance regarding acquisition discussions. As WBD prepares for a potential agreement with Netflix, Paramount has aimed to present a competitive offer. The news prompted shares of WBD and Paramount to increase by more than 2% and 3%, respectively.
General Mills issued a downbeat forecast for its full-year adjusted earnings per share and organic net sales, leading to a drop of over 3.5% in its stock following a presentation at the Consumer Analyst Group of New York conference.
In finance, Citigroup was named a top selection by Morgan Stanley, resulting in an elevated price target of $152, while the bank is set for an Investor Day on May 7. Additionally, Morgan Stanley upgraded Truist Financial to a “buy” status with an increased target price of $69.
UBS upgraded Southwest Airlines from a hold to a buy, upping its price target to $73 from $51 in light of potential earnings boosts related to new policies on seating and checked baggage.
In the retail sector, Rothschild has upgraded Dollar Tree to a buy, raising its price target to $165 following the Family Dollar sale. Conversely, Dollar General was downgraded to a sell, with a target price set at $111.
Lastly, Medtronic reported a positive performance for its third-quarter earnings in fiscal 2026 but maintained its full-year outlook, including a potential tariff impact of approximately $185 million. However, shares fell by 3% following the announcement.
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