Pre-Bell｜Dow, S&P 500, Nasdaq Futures Waver As Wall Street Weighs Iran's Next Move

US stock futures wobbled on Monday while oil prices gained, as markets calculated Iran's next move after the US entered the Middle East conflict by striking its nuclear sites.

Market Snapshot

At 08:26 a.m. ET, Dow E-minis were down 43 points, or 0.1%, S&P 500 E-minis were down 0.5 points, or 0.01%. Nasdaq 100 E-minis were up 3 points, or 0.01%.

Pre-Market Movers

Novo-Nordisk A/S said on Monday it would halt its collaboration with Hims & Hers Health Inc. over the sale of weight loss drugs. Hims & Hers shares plunged 22% on the news. Novo Nordisk shares dropped 6.9% in premarket.

Shares of drugmaker Exelixis rise 21% premarket. EXEL on Sunday said its experimental oral therapy zanzalintinib, combined with Roche's ROG.S Tecentriq, improved survival in patients with a type of colorectal cancer in a late-stage study.

Super Micro Computer Inc. has announced a proposed offering of $2.0 billion in convertible senior notes due 2030. These notes are intended to be sold to qualified institutional buyers under Rule 144A of the Securities Act of 1933. SMCI shares fell 4% on the news.

Defense contractors traded mostly higher in premarket trading. Northrop Grumman rose 0.6%. The company's B-2 bombers were involved in the attack on the Iran's nuclear sites. The planes dropped 14 bunker-busting GBU-57 massive ordnance penetrators, or MOPs. It was the first operational use of the 30,000-pound weapon the U.S. Air Force ordered from Boeing in 2011. Boeing shares were down 0.4%.

The American strikes on Iran involved more than 125 U.S. aircraft, including fourth and fifth-generation fighter jets from Boeing and Lockheed Martin. A submarine launched more than two dozen Tomahawk cruise missiles, which were made by RTX. Lockheed was rising 0.5% while RTX gained 1.1%.

Shares of oil companies traded higher. Iran's parliament approved closing the Strait of Hormuz, though the final decision lies with the country's Supreme National Security Council. The strait is a critical energy shipping route into and out of the Persian Gulf. Roughly one-fifth of global oil production flows through the Strait of Hormuz daily. Exxon Mobil was up 1.7%, Chevron gained 1.4%, ConocoPhillips rose 1.6%, and Marathon Petroleum was up 1.4%.

Tesla launched its highly anticipated robo-taxi service in Austin, Texas, on Sunday, and early users will be receiving a deal: CEO Elon Musk said they will pay a flat fee of $4.20 for each ride. The launch Sunday included only a handful of Tesla vehicles, in a geofenced area of Austin, with users hand-picked by Tesla and a safety monitor in the front passenger seat. Shares of Tesla, the electric-vehicle maker, rose 0.6% in the premarket session.

Northern Trust was up 2.4% after The Wall Street Journal reported Bank of New York Mellon approached its smaller rival last week to express interest in a merger. The Journal, citing people familiar with the matter, said the chief executives of BNY and Northern Trust had at least one conversation though they didn't discuss a specific offer. BNY is considering its next steps, which might include a formal bid for Northern Trust, the report said. BNY shares rose slightly.

Fiserv rose 3.8%. The financial-technology company launched a digital asset platform, including a new stablecoin that will be added to its existing banking and payments infrastructure by the end of 2025.

Dow Inc. declined 2% to $27.22. BMO Capital downgraded Dow to Underperform from Market Perform and reduced the price target on the chemicals maker to $22 from $29.

Market News

Alibaba to merge food delivery, travel agency platforms into core E-commerce business

Alibaba on Monday said it will merge its food delivery platform Ele.me and online travel agency Fliggy into its core e-commerce business as the Chinese group streamlines operations amid intensifying competition.

A prolonged property crisis and the economic fallout of the U.S.'s evolving trade policy have dampened spending appetite of Chinese shoppers.

Hillhouse mulling Starbucks acquisition in China

Hillhouse is considering acquiring a stake in Starbucks’ China business, according to Chinese media Cailianshe.

The investment firm has expressed interest in a potential acquisition following a reverse management roadshow for the US coffee chain’s operations in the region, the report said.

The roadshow also attracted interest from other prominent investment firms, including Carlyle Group and Trustar Capital, the report said, adding that the business is estimated to be valued somewhere between US$5 billion (HK$39 billion) and US$6 billion.