U.S. Stock Futures Mostly Up, AES Corp Shares Rise 7%
Stock futures are mostly in positive territory as traders digest stronger U.S. manufacturing data and impressive corporate earnings results, lifting confidence that corporate profits and macro fundamentals still provide support.Underlying this rebound is evidence that market breadth has improved, with not only mega-cap tech but also cyclicals taking part in the upside. Solid U.S. ISM manufacturing figures helped bolster economic optimism and pushed Treasury yields slightly higher, reflecting a healthy growth narrative that has given equity investors something to hang onto. Precious metals and cryptocurrencies, which were sources of volatility last week, remain in focus but have steadied somewhat, allowing equities to claim firmer footing.Traders are still keeping an eye on upcoming earnings from heavyweight companies across sectors, the delayed January jobs report due to the government funding impasse, and ongoing geopolitical developments that could influence sentiment and risk pricing.In pre-market trading, S&P 500 futures rose 0.19%, Nasdaq futures rose 0.46% and Dow futures fell 0.06%.Check out this morning's top movers from around Wall Street, compiled by The Fly.HIGHER -AES Corp.up 7% after BloombergBlackrock's GIP is partnering with EQT AB in a bid to acquire the companyUP AFTER EARNINGS -Teradyne (TER) up 19%Palantirup 11%Marathon Petroleumup 3%Ball Corp.up 2%Capri Holdingsup 1%MSG Entertainmentdown 1%MPLXup 1%DOWN AFTER EARNINGS -PayPaldown 17%Gartnerdown 17%TransDigmdown 5%Eatondown 4%Pfizerdown 4%Merckdown 1%PepsiCoup 1%LOWER -HP Inc.down 2% after reporting Enrique Lores stepped down as president and CEO to run PayPal
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- Market Decline: The S&P 500 index fell by 0.84%, the Dow Jones by 0.34%, and the Nasdaq 100 by 1.55%, indicating a sharp sell-off after reaching record highs, which negatively impacted investor sentiment.
- Tech Sector Retreat: Data service and software stocks plummeted following the release of an automation tool by AI firm Anthropic, with Thomson Reuters and EPAM Systems down over 15% and 13% respectively, reflecting a loss of confidence in tech stocks.
- Precious Metals Rally: Gold prices surged over 6% and silver over 8%, leading to gains in mining stocks, with Hecla Mining and Freeport McMoRan rising more than 8% and 6% respectively, indicating increased demand for safe-haven assets.
- Economic Outlook Improvement: Richmond Fed President noted an improving US economic outlook despite ongoing risks, with markets focusing on upcoming economic data and the passage of a spending bill to gauge future economic trends.
- Divergent Market Performance: The S&P 500 Index fell by 0.35% today while the Dow Jones Industrial Average rose by 0.13%, indicating a split in market sentiment, particularly as weakness in tech stocks weighed on overall performance.
- Tech Stock Retreat: Following the release of an automation tool for lawyers by AI firm Anthropic, data service and software stocks retreated, with Thomson Reuters down over 17% and Intuit and FactSet both down more than 9%, reflecting a decline in investor confidence in the tech sector.
- Mining Stocks Surge: Gold prices rose by over 6% and silver prices soared by more than 13%, driving mining stocks higher, with Freeport McMoRan and Hecla Mining both up over 6%, indicating a rebound in investor demand for precious metals.
- Economic Data Impact: Despite strong US manufacturing data, the 10-year T-note yield climbed to a 1.5-week high of 4.30%, dampening expectations for further Fed rate cuts and leading to cautious investor sentiment that pressured some stocks.
- Sales Warning: Novo Nordisk has warned that fiscal 2026 sales will be impacted by lower drug prices in the U.S., with expectations of a decline between 5% and 13%, despite an anticipated increase in users of its popular GLP-1 drug, which may shake investor confidence.
- Quarterly Sales Decline: The company expects fourth-quarter sales to drop by 2%, contrasting sharply with previous forecasts, potentially leading to further stock price volatility and affecting overall market performance.
- Increased Competitive Pressure: With the price cuts, Novo Nordisk faces heightened competitive pressure, particularly in the U.S. market, which could impact its future market share and profitability.
- Uncertain Financial Outlook: Although a 10% sales increase is projected for fiscal 2025, the uncertainty surrounding the overall financial outlook may lead to diminished investor confidence in the company's future, affecting its stock performance.
- Divergence in Tech Stocks: Despite strong earnings from Palantir Technologies and Teradyne boosting tech stocks, Palantir's shares rose over 5% after forecasting 2026 revenue significantly above expectations at $7.18 to $7.20 billion, well above the consensus of $6.27 billion.
- Precious Metals Rebound: Gold prices increased by more than 6% and silver surged over 13%, leading mining stocks like Freeport McMoRan and Hecla Mining to rise by more than 5% and 4% respectively, indicating a recovery in market demand for precious metals.
- PayPal's Stock Plunge: PayPal Holdings saw its stock drop over 18%, significantly weighing on the Nasdaq 100, as its Q4 net revenue of $8.68 billion fell short of the $8.79 billion consensus, coupled with a CEO change that may impact investor confidence.
- Economic Data Impacting Market Sentiment: While signs of an improving US economic outlook coexist with risks from concentrated hiring in a few sectors and inflation above the Fed's target, the market's expectations for future rate hikes have diminished, with the 10-year T-note yield rising to 4.3%, heightening investor unease.
- Stock Surge on Acquisition Rumors: AES Corp. shares rose 6.5% in early trading on Tuesday, primarily driven by reports of BlackRock teaming up with EQT AB to acquire the company, indicating strong market optimism regarding the potential deal.
- Strategic Acquisition Intent: The collaboration between BlackRock's Global Infrastructure Partners and EQT AB to acquire AES highlights significant interest from major investment firms in the renewable energy sector, potentially leading to further industry consolidation.
- Diverse Asset Portfolio: AES owns a mix of renewable generation assets, including wind and solar, alongside natural gas and coal facilities, as well as utilities in Indiana and Ohio, showcasing its diversified approach that enhances its attractiveness to investors.
- Intensifying Market Competition: AES is exploring various options, including a sale, which has drawn interest from infrastructure investors, reflecting the increasing competition in the renewable energy sector and potentially prompting the company to adopt more aggressive strategies to enhance shareholder value.

- Stock Performance: Shares of BlackRock rose by 5.8% following a report about a potential acquisition.
- Acquisition Details: The report indicates that BlackRock's GIP and EQT teams are collaborating on a bid to acquire a company.










