Latest news with #PrasSubramanian
Yahoo
4 days ago
- Automotive
- Yahoo
What's next for Tesla as its European demand evaporates
Tesla (TSLA) stock slides after data showed that the company's European sales dropped nearly 28% in May, even as overall electric vehicle (EV) demand in the region rose. Yahoo Finance Senior Reporter Pras Subramanian joins Asking for a Trend host Josh Lipton and Fundstrat Global Advisors managing director and global head of technical strategy Mark Newton to discuss what's behind Tesla's slump and how the stock might move going forward. To watch more expert insights and analysis on the latest market action, check out more Asking for a Trend here. Tesla shares went downhill today as more negative data emerges in its core auto business. Yahoo finances price of Meranian joins us now with more prize. Tesla European sales down for the ACA uh trade group in May to about 13,800 units. That's down 27.9% compared to a year ago. Meanwhile, overall sales in the region were up 25% in Europe. And this despite the new Model Y being available. So, what's going on here, Josh? It's kind of more of the same that we've been talking about. There's the must factor, the must factor alienating buyers with his support of far right-wing figures. And of course, there's better competition from Chinese makes like BYD, SAIC, as well as Volkswagen, right, the legacy automakers. So, same story in Europe, demand evaporating. Big question is, will it ever recover? Prize with the headlines. Let's bring back in our expert contributor, now Fundstrat Global Advisors, Mark Newton to discuss some recent moves with Tesla. You look at the technicals on this one, Mark, what do you see? It's encouraging. The stock's been up 15% over the last three months. I mean, obviously it's had a tough first half of the year. Always discouraging when a stock becomes uh more political, but honestly, you know, Tesla's back half of the year is shaping up to be very, very good. I mean, they had a great first weekend with this uh robo taxi rollout. We know that the combination of both FSD and self-autonomous both could account for potentially a trillion dollars in the next five years. Uh and a lot of that is not being shown right now in the current data. So it is sort of a show me stock. Elon always over promises and to some extent has under delivered, but yet uh the stock is is something that is very promising for me. Uh I like the stock a lot. I think getting back above 349 would put it back towards uh new all-time highs. And so I I'm uh, you know, bullish. My cycle projections show the stock continuing to rise in the back half of the year, much different than the first part of the year. So I like it. Prize, let me ask you just back to fundamentals there. When you think about competition for Tesla in Europe, where is that primarily coming from, Prize? I mean, is it China, domestic, you know, European players, both? Yeah, you know, you saw you see some upside uh some upside sales here for for BMW, right? And also, Volkswagen, I mentioned a lot of new smaller models coming out that are playing in spaces that Tesla isn't operating. Same with the Chinese auto makers, they're not operating that that that that sort of cheaper market, the sub 25,000, 30,000 euro market where those other players are operating. Now we Tesla's long been saying that they are going to come out with this cheaper EV. Uh they've been saying that now for the past year. We haven't seen it yet. We're all kind of anxiously waiting to see what it is. What is it? Is going to be a smaller car? Is it going to be like a D content Model Y? We'll see, but what Mark was saying is absolutely right because uh tell about technicals too. The stock is totally divorced from fundamentals, right? We talk about poor European sales, stock down a bit, but it's been up a lot recently. Uh the stock is a momentum stock, right, Mark? And I think that uh as you see in second half of the year, seasonality seasonality wise, that stock tends to do better. Yeah, absolutely right. Look, you look at the first part of the year, a lot of these sales are from time when when Elon was still affiliated with administration. And so it might not account for the current day. It's more of what happened in in recent history. And I think that sentiment uh should start to change in my view going forward. All right, thank you, Prize. And a big thank you, of course to Mark Newton for hanging us with this this afternoon. Some final thoughts, Mark. Nasdaq 100 at new all-time highs. I think Nvidia at new time highs. Uh S&P will get there sooner than later at a time when breadth is slowly but surely starting to expand. That's a good sign at a time when the economy seems to be working, earnings are good, and geopolitical risks are easing. So, investors don't seem to be all in on stocks by a long shot. People are still concerned for the right reasons. That's generally a time you still want to stick with the trend with markets at new highs. Not so much a technical question for you, but a question for a guy who's watched the markets for a long time. You go back to early April to liberation day, right? Sky is falling, run for the hills. What do you just make of the move here? Are you surprised by how fast and hard we've come back? I look at sentiment, I look at cycles. I think they're more important for me in determining where prices can go rather than Fed speak or earnings or any of those. So, you know, there was classic signs of capitulation that happened at the April lows. Um and I put out a report actually in April that said stocks are close to bottoming. I I am surprised of course that we're back at new all-time highs. You can see a bounce, but the fact that tech carried through as quickly as it did uh very, very encouraging. For my great great grandfather, Isaac Newton, you don't ever want to fight trends. Never things that are accelerating cannot be moved without sufficient force. So, like technically, things are in great shape and and sentiment has been a key reason why investors want to stick on board and and try to divorce themselves from what's happening in the world and just concentrate on their portfolios. When you call that bottom, did you get any push back from clients on that? Uh I got a lot of pushback, of course. I mean, I think that people uh think you're you're crazy when when we see markets selling off to the extent they did specifically in late March. I happen to be in in Latin America and so trying to write reports while being in Medellin and and Lima, it's not fun to have to go back and address the volatility and people look at you a little funny. So, uh happy that things worked out and and you know, it's encouraging to see both Tom Lee and myself have been, you know, optimistic and and saw reasons as to why stocks should have bottomed and pushed higher. Uh and still reasons for optimism, you know, I think in in the back half of this year, even if we get a bumpy fall. So, um happy for the recovery. Mark, great to have you on Saturday. Thank you, sir. Good to have you. Thank you. Great to be here. Thanks. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Automotive
- Yahoo
What's next for Tesla as its European demand evaporates
Tesla (TSLA) stock slides after data showed that the company's European sales dropped nearly 28% in May, even as overall electric vehicle (EV) demand in the region rose. Yahoo Finance Senior Reporter Pras Subramanian joins Asking for a Trend host Josh Lipton and Fundstrat Global Advisors managing director and global head of technical strategy Mark Newton to discuss what's behind Tesla's slump and how the stock might move going forward. To watch more expert insights and analysis on the latest market action, check out more Asking for a Trend here.
Yahoo
5 days ago
- Automotive
- Yahoo
Tesla faces robotaxi hurdles while Waymo keeps expanding
Tesla's (TSLA) robotaxi launch hit some early roadblocks with speed and traffic violations reported during tests in Texas, while Alphabet's (GOOG, GOOGL) Waymo expands its service to Atlanta. Yahoo Finance Senior Reporter Pras Subramanian, Tematica Research chief investment officer Chris Versace, and Yahoo Finance anchor Julie Hyman join Market Domination Overtime host Josh Lipton to discuss what Waymo's expansion means for Tesla's rollout, the National Highway Traffic Safety Administration's (NHTSA) safety review, and Tesla's competition with Uber (UBER) and Lyft (LYFT). To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here. The start of Tesla's robotaxi tests apparently didn't go as smoothly perhaps as the company touted. Yal Finanz Prize Submarine is here with that story, Prize. Yeah, we're just showing that the Hollywood set where they did the actual presentation last October didn't go exactly as planned. We saw a lot of the Tesla stands excited about taking their robotaxis right. But there were some hiccups, right? We saw some of the videos that they were taking some of the vehicles were speeding above post speed limits. And then most egregiously, there was an incident where a car, you see right here, attempted to turn left, didn't actually do that, and went straight through a left hand turn only lane, and then crossed a double yellow, as you see here, which is also a traffic violation, a major one actually in Texas. So Nizza says that they're aware of these incidents, and they're monitoring them, and that they'll take necessary actions to protect road safety. So Nizza is kind of possibly getting involved here. Meanwhile, Waymo entering Atlanta, like they said they're officially up open for business with partnering with Uber as their sort of platform partner. So you know, Waymo's with Uber in Atlanta, and also Austin, where Tesla's tests is taking place. And then also they're in LA, San Francisco, um, and places like that. Do you think, Prize, you you hear about something like this, does it in any way, could it in any way slow down, disrupt the expansion of this service across the country? You mean these little hiccups here? Yeah. I, it kind of brings a little bit of the enthusiasm down, but it's not ready for prime time, right? They have the safety drivers, riders sitting in the passenger seat, you have teleoperators who are remotely watching the car. You know, a lot of Tesla investors are excited about the fact that this test actually started, it's happening. But they have a long way to go to catch up to Waymo, which is doing 250,000 completed robotaxi trips a week without sort of these incidents that we're seeing right now in Tesla. All right, let's bring in our ensemble now for more on the ride shares today. Tesla, got a Google, Uber, Lyft, they're all in focus. Julie, you know, I, Tesla did slip a bit today, of course they had a nice pop yesterday. Though, as Prize rightfully points out, as Musk begins this journey here, he's got some big competition, including Waymo. Yeah, I mean, and if if there are these hiccups, I mean, as we know, federal regulators have sort of left it up to states and municipalities, whether they're even going to allow these things to go forward. You see it going forward on a city by city basis, right? So even though Tesla is still proceeding with its tests in Austin, if it continues to see, I mean, like, we're calling it a hiccup, but, you know, it could have been a lot worse, right? So the question is, how is Tesla addressing these issues? And then the next question is, when Tesla goes to apply for its next approval in its next city, is this going to inform that? Is this going to then cause some friction with letting that move forward? Now, we always know if we're on an Elon Musk timeline, you can't necessarily expect things to happen as he thinks or says that they will. Um, but this is just one more thing to consider when we're talking about that sort of speed to market, and then capturing that market share. Chris, I want to bring you here as well, as the one person on the panel who actually has a portfolio to run here. What do you make of this big fight? I got Tesla, Waymo, got Amazon in there, Uber, Lyft. Yeah, it's kind of a crowded space. Uh, you know, and it's kind of an emerging market. Uh, I, I think that this is going to be proven out over time. I think that the interesting way to play it from a, you know, differentiated way is, maybe we don't focus necessarily on, uh, you know, what Google is doing or Tesla is doing, but what does this mean for Uber? What does this mean for Lyft when we think about the removal of a key cost for them, right? And the amount of incremental profits that can drop to the bottom line once they have made these investments. To me, that's a lot more exciting. Sign in to access your portfolio
Yahoo
6 days ago
- Automotive
- Yahoo
Tesla stock jumps after robotaxi rollout
Tesla (TSLA) shares rose 10% after launching its robotaxi service in Austin, Texas. Yahoo Finance Senior Autos Reporter Pras Subramanian reports on the rollout while Freedom Capital Markets chief global strategist Jay Woods breaks down the stock's chart. To watch more expert insights and analysis on the latest market action, check out more Market Catalysts here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
7 days ago
- Business
- Yahoo
Stock market today: Dow, S&P 500, Nasdaq wobble, oil prices rise as Wall Street weighs Iran's next move
US stocks wobbled on Monday while oil prices gained, as markets calculated Iran's next move after the US entered the Middle East conflict by striking its nuclear sites. The Dow Jones Industrial Average (^DJI) edged down 0.1%. The S&P 500 (^GSPC) was flat, while the tech-heavy Nasdaq (^IXIC) fell 0.1%. Stocks fluctuated between small gains and losses after sliding on the heels of President Trump's decision to join Israel's attacks on Iran on Saturday. Investors are on edge over a shock surge in energy prices if Iran blocks the key Strait of Hormuz waterway, as that would have repercussions for economies worldwide. Trump said late Saturday that the US had struck Iran's three main nuclear enrichment facilities, saying the sites had been "totally obliterated" — a claim that has since been questioned. He threatened Iran with more attacks if the country did not quickly seek peace talks. The focus now is on Iran's next step — both militarily and diplomatically. Its foreign minister on Sunday said it reserves "all options," while its parliament has reportedly voted to block the Strait of Hormuz — though Iran's leaders have yet to make a final decision. After the bombings, oil futures surged over 4% amid jitters about disruption to energy supplies. That spike unwound somewhat early Monday morning, amid skepticism that Iran will follow through on its threat. But prices are advancing again, with Brent crude (BZ=F) futures trading above $77 a barrel and WTI crude futures (CL=F) topping $74 a barrel. Elsewhere in markets, gold (GC=F) ticked higher, also switching course amid wavering haven demand. Tesla stock (TSLA) rose 1.5% in early trading Monday after its robotaxi launch kicked off on Sunday in Austin, Texas. Yahoo Finance's Pras Subramanian reports that several users on X claimed they were able to hail and ride some of the 10-20 Tesla Model Y vehicles available, which featured "Robotaxi" graphics on the sides of the cars. Tesla CEO Elon Musk had announced the rollout on X earlier in the day, saying that customers will pay a flat $4.20 fee. Only select invited Tesla users were invited to test the robotaxi service, as it begins to scale to take on industry leader Waymo (GOOG, GOOGL). Wedbush analyst and Tesla bull Dan Ives wrote in a note: 'We took two approximately 15 minute rides around Austin and the key takeaways are that it was a comfortable, safe, and personalized experience.' Read more here. US stocks wavered on Monday as oil trimmed gains and supply worries eased over Iran's possible retaliatory move following US strikes on the country's nuclear facilities. The Dow Jones Industrial Average (^DJI) fell slightly while the S&P 500 (^GSPC) was little changed. The tech-heavy Nasdaq (^IXIC) fell slightly. OIl futures were little changed after spiking more than 5% on Sunday night as traders assessed whether Iran would close off the Strait of Hormuz, a critical chokepoint through which roughly 20% of the world's oil products flow. Trump Media & Technology (DJT) stock rose 4% before the market opened Monday morning after the company announced a $400 million stock buyback. Shares of the company — in which President Trump is the majority stakeholder — have fallen roughly 48% in 2025. Stock buybacks, a common practice that faces a fair share of criticism, reduce the amount of a company's common shares in the public market and, hence, boost its earnings per share even if its profits don't rise. Trump Media said the buybacks 'would be funded separately from, and would not alter, Trump Media's previously announced Bitcoin treasury strategy.' The company is aiming to create a bitcoin treasury to hold the cryptocurrency on its balance sheet and announced a $2.5 billion private funding round to fund the initiative in May. Trump Media is part of a wave of firms following in the footsteps of crypto tycoon Michael Saylor's company, Strategy (MSTR), which has seen its stock soar by buying up bitcoin. Wedbush analyst Dan Ives wrote in a note to clients on Monday that he expects cybersecurity stocks to be in focus following the US bombing of three Iranian nuclear facilities over the weekend. Ives wrote that 'cyber security stocks in particular [are] set to be front and center this week as investors anticipate some cyber attacks from Iran could be on the horizon as retaliation.' 'On the cyber security sector, our favorite names remain Palo Alto (PANW), Cyberark (CYBR), Crowdstrike (CRWD), Zscaler (ZS), and Checkpoint (CHKP)." The stocks traded roughly flat premarket on Monday. Defense stocks were modestly higher Monday during premarket trading after the US bombed three Iranian nuclear facilities over the weekend. Palantir (PLTR), Lockheed Martin (LMT), and Northrop Grumman (NOC) rose less than 1%, while RTX (RTX) climbed 1.3%. Palantir supplies AI-fueled defense tech to Israel, which has prompted blowback from former employees and protesters. The other three companies supply weapons to Israel through their contracts with the US government. The defense stocks had jumped immediately after Israel's first airstrikes on Iran on June 12, but only RTX has sustained notable gains of 4% since those strikes. Lockheed Martin is up 0.3% over that time frame, while Northrop Grumman is roughly flat (up 0.1%). Palantir has risen 1.6%. Jefferies (JEF) analyst Mohit Kumar wrote Monday, 'Market is now waiting to see how Iran reacts …However, we are not fully convinced around the market's sanguine reaction.' 'Defence has been one area that we have been bullish on, and we continue to maintain our overweight exposure,' he added. 'NATO countries have moved to increase defense spending with a long term goal of taking to 5% of GDP. We are typically skeptical of long term goals as goal posts do change, but it is also clear to us that defense spending needs to increase globally and not just for NATO countries.' Energy stocks rose alongside rising oil prices in premarket trading on Monday while overall stock futures wobbled. Those with oil production in the US and outside the Middle East caught a bid as investors weighed the possibility of further disruption to the oil supply following the US strikes on Iran. The Energy Select Sector SPDR Fund (XLE) advanced 0.6% and has risen 6% in the past month. Here's a look at how trending energy stocks are trading this morning: View more trending tickers here. Yahoo Finance's Jennifer Schonberger reports: Read more here. Economic data: Chicago Fed activity index (February); S&P Global US Manufacturing PMI (March preliminary); S&P Global US services PMI (March preliminary); S&P Global US Composite PMI (March preliminary) Earnings: FactSet (FDS), KB Home (KBH) Here are some of the biggest stories you may have missed overnight and early this morning: Trump just made the Fed's rate call even more complicated Opinion: Trump wages 2 wars — one with trade partners, one with Iran Why Iran could hold off blocking the Strait of Hormuz Oil erases spike in gains in wait for Iran's response Morgan Stanley: Geopolitical selloffs tend to fade fast Analysts react as markets brace for Iran's next move Dollar advances as investors brace for Iran response to US attacks BNY Mellon approached Northern Trust for merger: WSJ Here are some top stocks trending on Yahoo Finance in premarket trading: Tesla (TSLA) stock rose over 1% in premarket trading after rolling out its driverless taxi service to riders on Sunday. The debut of the robotaxi was introduced to a handful of riders, which included retail investors and social-media influencers in Tesla's hometown of Austin. Wolfspeed (WOLF) stock fell 11% in premarket trading on Monday after announcing it plans to file for bankruptcy in the US under a new restructuring agreement with its creditors. The agreement would provide fresh financing and slash debt by nearly 70%. Northern Trust Corporation (NTRS) shares rose 4% before the bell after a report from The Wall Street Journal said that Bank of New York Mellon Corp had reached out to the asset and wealth manager and expressed interest in a merger. Most investors will awaken today searching online for "Strait of Hormuz" after the weekend attacks from the US on Iran. For speed of analysis purposes, if this key oil shipping hub closes down (seems like it won't happen, based on everything I am seeing this morning), it could really send oil (CL=F, BZ=F) prices skyrocketing. Here's what Goldman's team estimates: "If oil flows through the Strait of Hormuz were to drop by 50% for one month and then were to remain down 10% for another 11 months, we estimate that Brent would briefly jump to a peak of around $110." Read more here on Goldman's scenarios. Gold pushed higher with the world in limbo as the US joined Israel's attack on Iran over the weekend. No formal response has been issued by Iran, with wider fallout expected. Spot gold climbed 0.2% to $3,375.04 an ounce taking it to within $125 of its record high as investors sought safe-haven assets in a tumultuous economic situation. Gold then sank 0.5% despite broader haven demand. Bloomberg reports: Read more here. Wall Street is closely watching escalating tensions in the Middle East after President Trump confirmed that the US launched a surprise strike on Iran's nuclear sites late Saturday, marking the country's official entry into the two-week-old conflict. Markets have held mostly steady in the aftermath of the escalation, although US stock futures fell across the board when trading opened Sunday evening. Additionally, bitcoin (BTC-USD) prices, often viewed as a barometer of risk appetite, dropped over 1.6% to trade around $100,500 a coin. WTI crude (CL=F) and Brent (BZ=F) futures jumped, trading near $76 and $79 a barrel, respectively, as uncertainty looms over the potential closure of the critical Strait of Hormuz despite ongoing threats from Iran. The latest surge follows oil's third consecutive week of gains on Friday. "We wouldn't be surprised to see this spark a risk-off reaction in US equities and will be watching the futures closely on Sunday evening and Monday morning," Lori Calvasina, head of US equity strategy research at RBC Capital Markets, wrote in a Sunday evening note to clients. "It has been and remains our belief that the longer and broader the conflict becomes, the more challenging it could be for US equities," Calvasina added. "These escalations come at a tricky time for US equities, as the S&P 500 has looked fairly valued to us (perhaps a bit overvalued) from a fundamental perspective, with more room to run from a sentiment perspective." The analyst said her three main concerns include: first, the risk that rising national security uncertainty could weigh on equity valuations; second, the possibility that renewed geopolitical tensions could stall the recovery in sentiment that began after the early April tariff lows; and third, the potential for a spike in oil prices, which could fuel inflation concerns. In terms of sectors, Energy (XLE) tends to outperform when oil prices rise, while Consumer Discretionary (XLY) and Communication Services (XLC), along with Entertainment, Media, and Interactive Media, tend to lag behind the broader market, Calvasina noted. Citi analyst Stuart Kaiser agreed that sharply higher oil prices remain "the channel for geopolitical risks to impact stock markets," identifying crude prices "well above $80 a barrel" as a critical threshold for concern. Kaiser added that options markets are now pricing in a 10% chance that oil surges 20% over the next month, up from just 2.5% two weeks ago, reflecting mounting tail risks as the conflict deepens. Still, the analyst pointed to resiliency in stocks amid the volatility, saying, "Markets powered through extreme oil volatility and unstable geopolitical headlines to post a risk-on week." Oil prices rose Sunday evening, with investors taking stock of the US entry into the Israel-Iran conflict and how Iran might respond. Much of the focus has turned to Iran's status as a major oil producer and whether it might seek to close the Strait of Hormuz, through which about one-fifth of the world's oil and gas flows. Iran's parliament reportedly pushed for the strait's closure, though it left the ultimate decision up to Iran's top national security body. That may be by design, as Yahoo Finance's Ben Werschkul details: Read more here. Futures tied to the S&P 500 (ES=F) fell 0.6%. (NQ=F) futures dropped 0.7%. Dow Jones Industrial Average futures (YM=F) lost around 0.6%. Oil, both Brent (BZ=F) and WTI, rose over 3%. Tesla stock (TSLA) rose 1.5% in early trading Monday after its robotaxi launch kicked off on Sunday in Austin, Texas. Yahoo Finance's Pras Subramanian reports that several users on X claimed they were able to hail and ride some of the 10-20 Tesla Model Y vehicles available, which featured "Robotaxi" graphics on the sides of the cars. Tesla CEO Elon Musk had announced the rollout on X earlier in the day, saying that customers will pay a flat $4.20 fee. Only select invited Tesla users were invited to test the robotaxi service, as it begins to scale to take on industry leader Waymo (GOOG, GOOGL). Wedbush analyst and Tesla bull Dan Ives wrote in a note: 'We took two approximately 15 minute rides around Austin and the key takeaways are that it was a comfortable, safe, and personalized experience.' Read more here. US stocks wavered on Monday as oil trimmed gains and supply worries eased over Iran's possible retaliatory move following US strikes on the country's nuclear facilities. The Dow Jones Industrial Average (^DJI) fell slightly while the S&P 500 (^GSPC) was little changed. The tech-heavy Nasdaq (^IXIC) fell slightly. OIl futures were little changed after spiking more than 5% on Sunday night as traders assessed whether Iran would close off the Strait of Hormuz, a critical chokepoint through which roughly 20% of the world's oil products flow. Trump Media & Technology (DJT) stock rose 4% before the market opened Monday morning after the company announced a $400 million stock buyback. Shares of the company — in which President Trump is the majority stakeholder — have fallen roughly 48% in 2025. Stock buybacks, a common practice that faces a fair share of criticism, reduce the amount of a company's common shares in the public market and, hence, boost its earnings per share even if its profits don't rise. Trump Media said the buybacks 'would be funded separately from, and would not alter, Trump Media's previously announced Bitcoin treasury strategy.' The company is aiming to create a bitcoin treasury to hold the cryptocurrency on its balance sheet and announced a $2.5 billion private funding round to fund the initiative in May. Trump Media is part of a wave of firms following in the footsteps of crypto tycoon Michael Saylor's company, Strategy (MSTR), which has seen its stock soar by buying up bitcoin. Wedbush analyst Dan Ives wrote in a note to clients on Monday that he expects cybersecurity stocks to be in focus following the US bombing of three Iranian nuclear facilities over the weekend. Ives wrote that 'cyber security stocks in particular [are] set to be front and center this week as investors anticipate some cyber attacks from Iran could be on the horizon as retaliation.' 'On the cyber security sector, our favorite names remain Palo Alto (PANW), Cyberark (CYBR), Crowdstrike (CRWD), Zscaler (ZS), and Checkpoint (CHKP)." The stocks traded roughly flat premarket on Monday. Defense stocks were modestly higher Monday during premarket trading after the US bombed three Iranian nuclear facilities over the weekend. Palantir (PLTR), Lockheed Martin (LMT), and Northrop Grumman (NOC) rose less than 1%, while RTX (RTX) climbed 1.3%. Palantir supplies AI-fueled defense tech to Israel, which has prompted blowback from former employees and protesters. The other three companies supply weapons to Israel through their contracts with the US government. The defense stocks had jumped immediately after Israel's first airstrikes on Iran on June 12, but only RTX has sustained notable gains of 4% since those strikes. Lockheed Martin is up 0.3% over that time frame, while Northrop Grumman is roughly flat (up 0.1%). Palantir has risen 1.6%. Jefferies (JEF) analyst Mohit Kumar wrote Monday, 'Market is now waiting to see how Iran reacts …However, we are not fully convinced around the market's sanguine reaction.' 'Defence has been one area that we have been bullish on, and we continue to maintain our overweight exposure,' he added. 'NATO countries have moved to increase defense spending with a long term goal of taking to 5% of GDP. We are typically skeptical of long term goals as goal posts do change, but it is also clear to us that defense spending needs to increase globally and not just for NATO countries.' Energy stocks rose alongside rising oil prices in premarket trading on Monday while overall stock futures wobbled. Those with oil production in the US and outside the Middle East caught a bid as investors weighed the possibility of further disruption to the oil supply following the US strikes on Iran. The Energy Select Sector SPDR Fund (XLE) advanced 0.6% and has risen 6% in the past month. Here's a look at how trending energy stocks are trading this morning: View more trending tickers here. Yahoo Finance's Jennifer Schonberger reports: Read more here. Economic data: Chicago Fed activity index (February); S&P Global US Manufacturing PMI (March preliminary); S&P Global US services PMI (March preliminary); S&P Global US Composite PMI (March preliminary) Earnings: FactSet (FDS), KB Home (KBH) Here are some of the biggest stories you may have missed overnight and early this morning: Trump just made the Fed's rate call even more complicated Opinion: Trump wages 2 wars — one with trade partners, one with Iran Why Iran could hold off blocking the Strait of Hormuz Oil erases spike in gains in wait for Iran's response Morgan Stanley: Geopolitical selloffs tend to fade fast Analysts react as markets brace for Iran's next move Dollar advances as investors brace for Iran response to US attacks BNY Mellon approached Northern Trust for merger: WSJ Here are some top stocks trending on Yahoo Finance in premarket trading: Tesla (TSLA) stock rose over 1% in premarket trading after rolling out its driverless taxi service to riders on Sunday. The debut of the robotaxi was introduced to a handful of riders, which included retail investors and social-media influencers in Tesla's hometown of Austin. Wolfspeed (WOLF) stock fell 11% in premarket trading on Monday after announcing it plans to file for bankruptcy in the US under a new restructuring agreement with its creditors. The agreement would provide fresh financing and slash debt by nearly 70%. Northern Trust Corporation (NTRS) shares rose 4% before the bell after a report from The Wall Street Journal said that Bank of New York Mellon Corp had reached out to the asset and wealth manager and expressed interest in a merger. Most investors will awaken today searching online for "Strait of Hormuz" after the weekend attacks from the US on Iran. For speed of analysis purposes, if this key oil shipping hub closes down (seems like it won't happen, based on everything I am seeing this morning), it could really send oil (CL=F, BZ=F) prices skyrocketing. Here's what Goldman's team estimates: "If oil flows through the Strait of Hormuz were to drop by 50% for one month and then were to remain down 10% for another 11 months, we estimate that Brent would briefly jump to a peak of around $110." Read more here on Goldman's scenarios. Gold pushed higher with the world in limbo as the US joined Israel's attack on Iran over the weekend. No formal response has been issued by Iran, with wider fallout expected. Spot gold climbed 0.2% to $3,375.04 an ounce taking it to within $125 of its record high as investors sought safe-haven assets in a tumultuous economic situation. Gold then sank 0.5% despite broader haven demand. Bloomberg reports: Read more here. Wall Street is closely watching escalating tensions in the Middle East after President Trump confirmed that the US launched a surprise strike on Iran's nuclear sites late Saturday, marking the country's official entry into the two-week-old conflict. Markets have held mostly steady in the aftermath of the escalation, although US stock futures fell across the board when trading opened Sunday evening. Additionally, bitcoin (BTC-USD) prices, often viewed as a barometer of risk appetite, dropped over 1.6% to trade around $100,500 a coin. WTI crude (CL=F) and Brent (BZ=F) futures jumped, trading near $76 and $79 a barrel, respectively, as uncertainty looms over the potential closure of the critical Strait of Hormuz despite ongoing threats from Iran. The latest surge follows oil's third consecutive week of gains on Friday. "We wouldn't be surprised to see this spark a risk-off reaction in US equities and will be watching the futures closely on Sunday evening and Monday morning," Lori Calvasina, head of US equity strategy research at RBC Capital Markets, wrote in a Sunday evening note to clients. "It has been and remains our belief that the longer and broader the conflict becomes, the more challenging it could be for US equities," Calvasina added. "These escalations come at a tricky time for US equities, as the S&P 500 has looked fairly valued to us (perhaps a bit overvalued) from a fundamental perspective, with more room to run from a sentiment perspective." The analyst said her three main concerns include: first, the risk that rising national security uncertainty could weigh on equity valuations; second, the possibility that renewed geopolitical tensions could stall the recovery in sentiment that began after the early April tariff lows; and third, the potential for a spike in oil prices, which could fuel inflation concerns. In terms of sectors, Energy (XLE) tends to outperform when oil prices rise, while Consumer Discretionary (XLY) and Communication Services (XLC), along with Entertainment, Media, and Interactive Media, tend to lag behind the broader market, Calvasina noted. Citi analyst Stuart Kaiser agreed that sharply higher oil prices remain "the channel for geopolitical risks to impact stock markets," identifying crude prices "well above $80 a barrel" as a critical threshold for concern. Kaiser added that options markets are now pricing in a 10% chance that oil surges 20% over the next month, up from just 2.5% two weeks ago, reflecting mounting tail risks as the conflict deepens. Still, the analyst pointed to resiliency in stocks amid the volatility, saying, "Markets powered through extreme oil volatility and unstable geopolitical headlines to post a risk-on week." Oil prices rose Sunday evening, with investors taking stock of the US entry into the Israel-Iran conflict and how Iran might respond. Much of the focus has turned to Iran's status as a major oil producer and whether it might seek to close the Strait of Hormuz, through which about one-fifth of the world's oil and gas flows. Iran's parliament reportedly pushed for the strait's closure, though it left the ultimate decision up to Iran's top national security body. That may be by design, as Yahoo Finance's Ben Werschkul details: Read more here. Futures tied to the S&P 500 (ES=F) fell 0.6%. (NQ=F) futures dropped 0.7%. Dow Jones Industrial Average futures (YM=F) lost around 0.6%. Oil, both Brent (BZ=F) and WTI, rose over 3%.
