S&P 500 futures are little changed, with SPY off 0.1%, as Wall Street weighs an abrupt complication to yesterday's oil-driven relief rally: the Wall Street Journal reported overnight that US forces struck Iran's Qeshm Island, a headline that lands hours after the Nasdaq 100 closed down 10% from its October record, officially in correction territory.

The Iran situation remains the dominant cross-asset driver and is genuinely unsettled. President Pezeshkian said Tehran's Supreme Leader has granted the government authority to pursue talks, and Foreign Minister Araqchi said the Strait of Hormuz reopens if Washington accepts Iran's conditions, while a separate Iranian source insisted no action will occur until all seven demands are met and the strait stays under Iran's full military control. Iran's IRGC claims it downed a US MQ-9 drone near the strait, and blasts were reported off Bandar Lengeh and on Qeshm. Crude collapsed on the diplomatic optimism Monday, with WTI settling at $96.46 (-7.36%) and Brent at $104.77 (-7.63%), and Trump posted that oil is "dropping like a rock" and that Iran "wants a settlement." The Qeshm strike report tests that narrative heading into today's open. On data, the final October ISM Manufacturing PMI beat at 55.5 versus 54.5 expected, though the separate manufacturing PMI print of 54.9 came in below its 56.0 flash reading.

Technology is the standout pre-market sector, up 0.4%, led by a broad semiconductor bid: KLA Corp gains 3.9%, Micron 3.6%, Lam Research 3.5%, Applied Materials 3.3%, Intel 3.2% and AMD 3.1%, with the Semiconductor ETF up 2.7%. That strength sits against sharp single-name damage elsewhere in the group, including Zebra Technologies down 13.1% and Gartner down 7.3%. Energy is firmer at 0.7% as crude stabilizes, while Financials (-0.4%) and Consumer Staples (-0.6%) lag, the latter dragged by Keurig Dr Pepper's 4.9% decline.

Company News

• Palantir Technologies beat Q3 estimates and raised full-year revenue guidance to $8.53-8.534 billion, with CEO Alex Karp noting US commercial revenue surpassed government revenue for the first time, yet shares are down 6.7%.
• Apple's fiscal Q4 revenue of $114.50bn missed expectations despite a per-share beat; shares are off 3.9%.
• Shopify is down sharply, off more than 15%.
• Marvell Technology has agreed to acquire Lumentum Holdings in an all-stock deal valued at $115bn.
• Oracle is down 1.0% after moving to raise $20bn through stock and bond sales, reportedly including a $10bn share offering at an 11% discount.
• ON Semiconductor cut its planned Synaptics acquisition to roughly $5.7bn in cash from a $7bn stock deal and agreed to buy Ferric for up to $775m to expand its AI power-delivery business.
• Diamondback Energy (+2.0%) beat estimates, raised its dividend 7.3% and lifted production guidance.
• Vertex Pharmaceuticals (+2.0%) missed on revenue but raised full-year guidance.
• Neurocrine Biosciences (+6.0%) beat sharply and raised INGREZZA sales guidance.
• Clorox (+2.8%) beat estimates but flagged higher inflationary pressure on margins.
• Leidos is down 2.1% despite an earnings beat, after trimming full-year revenue guidance tied to a joint-venture divestiture.
• Kimberly-Clark completed its acquisition of Kenvue.

© Raydn · raydn.us