FINWIRES · TerminalLIVE
FINWIRES

Stocks Mostly Down Pre-Bell as Iran Reportedly Offers New Proposal to Open Strait of Hormuz

By

The benchmark US stock measures were mostly tracking in the red before the opening bell Monday as traders assess media speculation about Iran's new proposal to open the Strait of Hormuz.

The S&P 500 and the Dow Jones Industrial Average declined 0.1% each in premarket activity, while the Nasdaq was up 0.1%. The Nasdaq and S&P 500 finished Friday's trading session with new closing highs, while the Dow was down.

Iran has sent a new proposal to the US to reopen the crucial Strait of Hormuz, the world's most important chokepoint for crude flows, Axios reported, citing a US official and two sources with knowledge of the matter. The proposal reportedly includes postponing nuclear negotiations to a later stage.

Shipment traffic through the Strait of Hormuz remains at a near-complete halt with Iran and the US imposing their respective blockades of maritime traffic, Bloomberg News reported Sunday.

West Texas Intermediate crude oil rose 2.1% to $96.38 a barrel before the open, while Brent gained 2.3% to $107.77.

President Donald Trump cancelled plans to send his representatives to Pakistan for negotiations with Iran, saying too much time has been "wasted on traveling."

"We have all the cards, they have none!" Trump said in a social media post on Saturday. "If they want to talk, all they have to do is call!!!"

Iranian Foreign Minister Seyed Abbas Araghchi travelled to Islamabad over the weekend to convey Tehran's "observations" to Pakistan's high-level officials, foreign ministry spokesman Esmaeil Baqaei said in a post on X. There was no meeting planned with the US, according to Baqaei.

Trump last week extended a ceasefire with Iran, but maintained the naval blockade of Iranian ports.

The personal income and outlays report for March is scheduled to be released on Thursday. The report includes the personal consumption expenditure core price index, the Federal Reserve's preferred inflation metric.

US consumer sentiment improved from an initial April estimate, but remained at a record low as near-term inflation expectations logged the biggest monthly increase in a year, final University of Michigan survey results showed Friday.

Monday's thin economic calendar has the Dallas Fed manufacturing survey for April at 10:30 am ET.

Technology giants Alphabet (GOOG, GOOGL), Apple (AAPL), Microsoft (MSFT), Amazon (AMZN) and Meta Platforms (META) are slated to release their latest financial results later this week.

Verizon Communications (VZ) and Domino's Pizza (DPZ) report their earnings before the bell, while Cadence Design Systems (CDNS) announces its financial statement after the markets close.

Organon (OGN) shares climbed 16% pre-bell after the healthcare firm agreed to be acquired by India's Sun Pharmaceutical Industries in an all-cash deal worth about $11.75 billion. Qualcomm (QCOM) added 13% after finishing the previous trading session up 11%, while Nvidia (NVDA) increased 1%.

Treasury yields were trending upwards in premarket action, with the two-year rate inclining 1.3 basis points to 3.79% and the 10-year rate moving 0.6 basis points higher to 4.32%.

Gold slipped 0.5% to $4,718 per troy ounce, while bitcoin decreased 0.6% to $77,804.

Related Articles

US Markets

Nasdaq, S&P 500 Reach New Peaks Amid Tech Rally, Log Weekly Gains

The Nasdaq Composite and the S&P 500 hit all-time peaks as technology stocks rallied on Friday, while traders turned hopeful for a new round of US-Iran peace talks.The Nasdaq rose 1.6% to 24,836.6, while the S&P 500 climbed 0.8% to 7,165.1, both notching new closing highs. The Dow Jones Industrial Average fell 0.2% to 49,230.7. Technology paced the gainers with a 2.5% jump, while health care saw the biggest drop.This week, the Nasdaq advanced by 1.5%, while the S&P 500 added 0.5% -- marking their fourth consecutive weekly advance. The Dow posted a weekly loss of 0.4%."Equity markets were mixed this week with volatility settling down, and equity investors seemingly putting the conflict in Iran behind them despite ongoing uncertainties," Robert Kavcic, senior economist at BMO Capital Markets, said in a report."Despite the trade war and Iran conflict, the market keeps finding a footing thanks to the large-scale (artificial intelligence) buildout, strong productivity growth and robust earnings," Kavcic said.Intel shares soared nearly 24%, the best performer on the S&P 500. Late Thursday, the chipmaker delivered a first-quarter beat amid artificial intelligence-driven demand for its products. The company issued an upbeat outlook for the ongoing quarter.Intel's post-earnings commentary suggests revenue upside potential for 2026, UBS Securities said in a note.Several other major tech stocks also advanced. Nvidia (NVDA) shares jumped 4.3%, the top gainer on the Dow, followed by Amazon.com's (AMZN) 3.5% increase. Advanced Micro Devices (AMD) and Qualcomm (QCOM) were up by double-digit percentage each, both among the best S&P 500 performers.Charter Communications (CHTR) reported first-quarter earnings below Wall Street's estimates as revenue declined annually, driven by weakness in the residential video and Internet segments. The company's shares plunged nearly 26%, the steepest decline on the S&P 500.West Texas Intermediate crude was last down 0.5% at $95.33 per barrel, while Brent rose 1.3% to $106.44.US special envoy Steve Witkoff and Jared Kushner will travel for Pakistan Saturday for a fresh round of talks with Iran, White House Press Secretary Karoline Leavitt said on Friday.Iran's Foreign Minister Seyed Abbas Araghchi has arrived in Pakistan.US Treasury yields were lower, with the 10-year rate down two basis points at 4.31% and the two-year rate falling 6.3 basis points to 3.78%.In economic news, US consumer sentiment improved from an initial April estimate, but remained at a record low as near-term inflation expectations logged the biggest monthly increase in a year, final University of Michigan survey results showed."The Iran conflict appears to influence consumer views primarily through shocks to gasoline and potentially other prices," Surveys of Consumers Director Joanne Hsu said. "In contrast, military and diplomatic developments that do not lift supply constraints or lower energy prices are unlikely to buoy consumers."About three in every five US consumers plan to cut discretionary spending as a result of high gasoline prices, with a majority considering a pullback in outlays on travel and entertainment, according to an Oppenheimer survey.Gold was last down 0.1% at $4,721.70 per troy ounce, while silver gained 0.5% to $75.85 per ounce.

Dow JonesNasdaq CompositeS&P 500$AMD$AMZN$CHTR$INTC$NVDA$QCOM
US Markets

Comcast Has Limited Upside Potential Amid Broadband Competition, Deutsche Bank Says

Comcast's (CMCSA) share price has limited upside potential from here on out amid a challenging competitive environment for broadband, Deutsche Bank said in a note emailed Friday.The brokerage downgraded its rating on Comcast's stock to hold from buy and reduced the 12-month price target to $34 from $35.The media and connectivity giant's share price plunged 13% to $27.56 on Friday, a day after stronger-than-expected first-quarter results drove a a 7.7% rise. The stock logged a 6.1% gain in the week starting April 12.Deutsche Bank sees "limited upside" to reach the $34 price target, given recent stock price appreciation, Analyst Bryan Kraft said. The strong first-quarter performance is unlikely to be "fully repeatable over the next few quarters," Kraft said.The brokerage said that broadband competition is intensifying as telecommunication providers AT&T (T) and Verizon (VZ) expand their fiber networks, while low Earth orbit satellite constellations seek to gain market share.Additionally, mobile network operators are purchasing more spectrum to increase capacity and grow their fixed wireless subscriber bases, Kraft wrote.Comcast's first-quarter results were driven by a $2.2 billion boost from the Milan Cortina Olympics and Super Bowl LX. The company's first-quarter revenue increased 5.3% annually to $31.46 billion."We believe valuation is now at a fair level given what we see as a muted growth outlook over the next few years in both consolidated (earnings before interest, taxes, depreciation, and amortization) and (free cash flow)," Kraft added.

$CMCSA
US Markets

Consumers Eye Discretionary Spending Cut Amid High Gasoline Prices, Oppenheimer Survey Shows

About three in every five US consumers plan to cut discretionary spending as a result of high gasoline prices, with a majority considering a pullback in outlays on travel and entertainment, according to an Oppenheimer survey.The brokerage said of the 1,000 household decision makers polled, it focused on 880 respondents who drive either a hybrid or gas car.The survey sought to gauge potential impacts of elevated gas prices on consumer behavior and determine their possible actions if fuel costs remain elevated.Gasoline prices in the US are tracking above $4 per gallon, compared with a recent low of $2.80, Oppenheimer analysts Brian Nagel and Andrew Chasanoff said in a Friday note. The surge follows higher crude oil prices amid supply disruptions and production shut-ins caused by the Middle East conflict."Nearly 60% of participants in our survey indicate plans to actively pull back on discretionary spending as a result of elevated gas prices, of which 74% plan to reduce monthly discretionary spending by upwards of $400," Nagel and Chasanoff wrote.The survey showed 62% of the people planning to curtail spending are leaning toward focusing first on travel and entertainment such as sporting events and concerts, Oppenheimer said.The survey showed that apparel and home-related spending could be additional areas of saving for consumers.US consumer sentiment improved from an initial April estimate, but remained at a record low as near-term inflation expectations logged the biggest monthly increase in a year, final University of Michigan survey results showed Friday."As gas prices remain elevated, at least nearer-term, we tend to foresee more losers than winners, and few 'safehavens'," Nagel and Chasanoff said. "Those most at risk include athleisure, consumer electronics, and mid-tier-focused home-related chains."