Premarket Movers: SK Hynix and Intel Gain Amid Partnership Talks
- SK Hynix and Intel’s stocks rose over 2.5% as talks for U.S. chip manufacturing begin.
- J.B. Hunt shares plummet over 11% following a Q3 earnings warning.
- Paychex increases over 1% after an upgrade from Wolfe Research.
SK Hynix and Intel saw their stocks rise more than 2.5% after a Reuters report indicated that SK Hynix is in discussions with Intel to manufacture memory chips in the United States for the first time. However, SK Hynix stated that no definitive decisions regarding a partnership have been made yet.
Meanwhile, shares of J.B. Hunt Transport Services experienced a significant decline of over 11% after the company announced that it expects its earnings for the third quarter to fall by 5% to 10% compared to the previous quarter. J.B. Hunt attributed this downturn to internal adjustments made in response to rising costs in purchase transportation.
Expedia’s stock also dropped by more than 2.5% following a downgrade by Morgan Stanley to ‘underweight.’ Analysts from the bank noted that the stock has an unfavorable risk/reward profile due to heightened exposure to a potentially weakening consumer market.
In the energy sector, U.S. oil prices fell 2% due to a report of increasing energy inventories, negatively impacting energy stocks. Diamondback Energy’s shares fell nearly 4%, while Occidental Petroleum dipped by 1%. ExxonMobil and Devon Energy both recorded declines of approximately 1%.
In contrast, shares of Paychex rose more than 1% after Wolfe Research upgraded the stock to ‘peer perform.’ Analysts indicated that the current macroeconomic environment is conducive to the company’s revenue growth forecast, highlighting its focus on blue-collar workers as a buffer against potential job losses from AI advancements.
Lastly, Union Pacific saw a rise of 1.5% following an upgrade from UBS to ‘buy.’ Analysts at UBS expect robust volume growth, which they project will lead to earnings surpassing expectations through 2028.
News Courtesy of CNBC
