Clover Health, Stitch Fix, Coupa Software: What to Watch When the Stock Market Opens Today

U.S. stock futures drifted higher, suggesting major indexes would turn in a mixed performance after the opening bell in an extension of the recent choppy but range-bound trading.

  • S&P 500 futures ticked up 0.2%. Futures on the Dow Jones Industrial Average were flat. Contracts for the tech-heavy Nasdaq-100 gained 0.6%.
  • The U.S. trade deficit narrowed to $68.9 billion in April from $75 billion in March, the Commerce Department said.
  • Yields on 10-year Treasury notes ticked down to 1.529% from 1.570%. The dollar is up and oil prices are down slightly. Read our full market wrap here.
What’s Coming Up
  • Figures on job openings are scheduled to be published at 10 a.m. ET.
  • Casey’s General Stores and American Software are due to report earnings after the stock market closes.
Market Movers to Watch
  • Shares of Clover Health Investments soared after emerging as the latest target for retail traders on Reddit forums. The health-care company’s share price rose over 32% Monday and is up another 37% on Tuesday in premarket trading.
  • Stitch Fix : The online apparel company’s losses narrowed in the fiscal third quarter as sales jumped 44%, lifted by an increase in customers who took their shopping online. Shares leaped 11% premarket.
  • Shares of Coupa Software dropped 8.9% before the bell. The company forecast that it would post a loss in its 2022 fiscal year and named Tony Tiscornia as its new chief financial officer.
  • Fastly ‘s stock lost 1.7% before the bell. The operator of a content-delivery network service, used by many websites, reported issues with its services. It was unclear whether the broader website outages reported early Tuesday in the U.S. and Europe were related.
  • Tesla shares rose 3.1%. The China Passenger Car Association said the electric-vehicle maker sold 21,936 made-in-Shanghai vehicles in China in May while exporting 11,527 cars overseas.
  • Marvell Technology gained 5.6% after the chipmaker record quarterly sales.
  • W. P. Carey slipped 3.2%. The real-estate investment trust said it was looking to raise about $395 million in a share offering to fund potential investors and repay debt.
  • Etsy lost 1.2% after the online crafts marketplace proposed a private offering of $1 billion in convertible senior notes late Monday.
Market Facts
  • Traders last week spent $11.6 billion on options contracts tied to AMC Entertainment Holdings, more than on the SPDR S&P 500 ETF Trust, Invesco QQQ Trust and Tesla Inc. combined, according to Cboe Global Markets data. Options on those stocks are typically among the market’s most popular.
  • Biogen shares surged 38% on Monday after U.S. regulators gave the green light to the drug known as aducanumab, the first such approval of any drug to treat Alzheimer’s in nearly two decades.
  • Demand for lithium used in batteries is expected to expand by a factor of 30 by 2030, according to the International Energy Agency. Cobalt and nickel also will be needed for batteries while copper will be used by transmission lines, electric vehicles and wind turbines. 
Chart of the Day
  • The rally in stocks such as AMC Entertainment and GameStop has unleashed a burst of options trading, upending traditional dynamics in the derivatives market. The once-obscure corner of the market has boomed this year, with many new investors trying their hands during the pandemic shutdowns.
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