Coffee With Greta: Tech Pullback


DJIA Futures: -142 (-0.4%)

SPX Futures: -21 (-0.4%)

NASDAQ Futures: -123 (-0.7%)

Good morning friends!

Futures are slipping as traders await key data this week.

Let’s get right to it!

Tech Pullback

Stocks are falling this morning, continuing Monday’s  decline that pulled the Nasdaq back from record highs. 

The tech-heavy index slipped 0.4% on Monday while the S&P 500 fell 0.12% and the Dow dropped 0.25%. 

Both the S&P and Nasdaq were in record territory ahead of Monday’s drop. 

The drop in tech stocks came even as major AI leaders rallied with Nvidia (NVDA) rising 3% and Super Micro Computer (SMCI) surging 18%.

Traders are awaiting key events this week with the Fed Chair set to testify in Congress and new labor market data beginning on Wednesday.

AMD’s China Chips Blocked

Advanced Micro Devices (AMD) shares are falling 2.2% ahead of the open after hitting a regulatory roadblock for its AI chip made for China. 

Bloomberg reported the company will need to apply for an export license for the new chip. 

AMD designed the chip to have lower performance than its premium products. 

But the Commerce Department did not clear it for sale in China, saying it was still too advanced. 

The U.S. has restricted sales of the most advanced semiconductor technologies to China, citing national security concerns. 

The restrictions have also impacted Nvidia’s (NVDA) sales in China.

Target Surges After Earnings

Target (TGT) shares are rallying 9.3% in premarket trade after beating Q4 expectations on the top and bottom line. 

Here’s how the retailer’s results compared to analysts’ estimates:

  • EPS: $2.98 vs $2.42 expected
  • Revenue: $31.92 billion vs $31.83 billion expected

Comparable sales declined 4.4% year over year, dropping for the third quarter in a row. 

The company expects that trend to continue. 

Target forecast Q1 adjusted EPS between $1.70 and $2.10 with comparable sales expected to decline between 3% and 5%. 

The retailer expects full-year comparable sales to be flat to up to 2% and adjusted EPS between $8.60 and $9.60. 

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