Dow, S&P 500, Nasdaq futures fall ahead of shortened week with AI disruption fears in focus

DTE Energy (DTE) stock rose 10% during premarket hours on Tuesday. The energy company is due to release its earnings before the bell today, and the stock has risen 13% over the past year.

Norwegian Cruise Line (NCLH) stock rose 7% during premarket trading on Tuesday afyer activist investor Elliott built a stake in the company.

Strategy (MSTR) stock fell 3% before the bell today. The company, which is one of the largest corporate holders of bitcoin, has been struggling recently due to the sell-off with the world’s largest cryptocurrency.

A growing number on Wall Street are assessing the recent AI sell-offs, and despite many fearing the bubble has burst, for stock pickers, now might be the time for them to get greedy.

Bloomberg News reports:

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Germany’s Hapag-Lloyd (HLAG.DE, HPGLY) is buying ZIM Integrated Shipping Services in a deal worth $4.2 billion, bringing together two of the world’s biggest shipping lines.

Shares of Israel-based ZIM rocketed over 35% higher in premarket trading, after the two companies confirmed the takeover on Monday.

The Wall Street Journal reports:

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Masimo (MASI) stock surged over 30% in premarket following a report that Danaher (DHR) is closing in on a deal to buy the medical technology company.

The deal moves come two years after activist investor Politan succeeded in pushing through a change in Masimo’s board.

It would be the biggest acquisition by Danaher in over half a decade, the Financial Times reported. Shares of the US life sciences manufacturer fell over 5% before the bell.

The FT reports:

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Norwegian Cruise Line (NCLH) stock rose 6% before the bell on Tuesday following the news that activist investor Elliott has built a 10% stake in Norwegian Cruise Line and plans to push for changes, according to The Wall Street Journal.

Elliott has become one of the cruise line’s top investors and is keen to fix the company’s underperformance. Elliott has so far built a stake in Southwest Airlines (LUV), as well as oil refiner Phillips 66 (PSX) and Toyota Industries (TYIDY). According to The Wall Street Journal, Elliott has over $79 billon in assets under management and is concerned with the financial performance of Norwegian Cruise Line.

The Wall Street Journal:

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From Bloomberg:

The dollar (DX-Y.NYB) is edging higher for a second day, shrugging off market pricing that implies roughly three Federal Reserve interest-rate cuts this year.

The Bloomberg Dollar Spot Index rose 0.1% even as the yen strengthened about 0.4%, with declines for other currencies in the basket keeping the gauge higher.

Options markets indicate near-term bearishness on the greenback has eased, with so-called front-end risk reversals at their least negative in almost a month.

Money markets are still pricing about 64 basis points of Fed cuts by year-end. Some strategists argue that is overdone as three cuts may be more than the data justify, leaving the market vulnerable to a dollar rebound.

“Fed funds rate-cut bets look stretched, leaving room for a near-term USD-positive repricing,” said Elias Haddad, global head of markets strategy at Brown Brothers Harriman, citing resilient growth and underlying inflation that has stalled above the Fed’s 2% target.

Read more here.

Bloomberg reports:

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