5 Things to Know Before the Stock Market Opens

Stock futures are rising at the start of a busy week of earnings reports, while investors monitor progress on peace talks with Iran; Trump said over the weekend that the talks are moving forward, but "self defense" strikes by the U.S. military in southern Iran have renewed tensions; a number of retailers and tech companies will report earnings this week; shares of chipmakers are gaining in premarket trading as the AI trade sustains its momentum; and Ferrari shares are slipping after the company unveiled its first fully electric sports car. Here's what you need to know today.

Stock futures are gaining ground ahead of the first opening bell of the holiday-shortened trading week, as investors await news of progress on peace talks with Iran. Dow Jones Industrial Average futures were up 0.5% recently, while futures tied to the S&P 500 and the tech-heavy Nasdaq rose 0.7% and 1.1%, respectively. The stock market ended last week on a high note, with the Dow closing at a record high and the S&P 500 locking in its eighth straight week of gains. WTI crude oil futures, the U.S. benchmark, were down more than 4% at around $92.50 per barrel, trading at their lowest levels in over a month, following news over the weekend that a deal with Iran could be close (more on that below). The yield on the 10-year Treasury note was at 4.49%, down from 4.56% at Friday's close and well below the 16-month high of 4.67% it hit a week ago. Bitcoin was trading at $77,000, up from a weekend low of about $74,200, while gold futures ticked lower to $4,510 an ounce.

President Trump said over the weekend that the U.S. and Iran are "proceeding nicely" on a deal to end the war that started nearly three months ago. A deal could include a 60-day period of negotiations that would allow the Strait of Hormuz to reopen, while final decisions are made about Iran's nuclear program and sanctions waivers are granted to allow Iran to sell its own oil, per The Associated Press. Tensions between the countries remain high this morning after the U.S. made what it called "self-defense" strikes in southern Iran, which Iran has already threatened to retaliate for.12 Trump on social media also said a deal could come with more countries in the Middle East signing on to the Abraham Accords, a 2020 agreement normalizing diplomatic relations between Israel and other countries in the region.3

There's a a full slate of earnings reports this week, with results due from the retail and tech sectors. Among the retailers, Best Buy (BBY) is scheduled to release its numbers on Wednesday, while Costco Wholesale (COST), Dollar Tree (DLTR), Burlington Stores (BURL) and Gap (GAP) are scheduled to report the following day. Walmart (WMT) and Target (TGT) delivered mixed results last week. On the tech front, software giant and Dow component Salesforce (CRM), which has seen its stock slide this year amid concerns about possible AI disruption to its business, is slated to release results Wednesday. Marvell Technology (MRVL) and Synopsys (SNPS) are also set to report earnings on Wednesday, while Dell Technologies (DELL) is scheduled to release its results on Thursday.

Chip stocks are rising in premarket trading as the sector looks to extend a rally that has powered major indexes to record highs lately. The iShares Semiconductor ETF was up 3% ahead of the opening bell, as Marvell Technology (MRVL) and Micron (MU) each jumped more than 7%, while Advanced Micro Devices (AMD), Intel (INTC) and Nvidia (NVDA) also gained ground. Shares of Nvidia, the chipmaker at the heart of the AI boom, lost ground the past two sessions despite a strong earnings report.

Shares of Ferrari (RACE) are moving lower this morning after the carmaker revealed its first all-electric sports car over the weekend.4 The company said the Ferrari Luce was designed in collaboration with LoveFrom, the "design collective" started by former Apple (AAPL) designer Jony Ive, who played a key role in the launch of several Apple products. The car will start at around 550,000 euros, or about $640,000. The new Ferrari model will provide the latest test for EV demand among the world's wealthy. The EV industry has struggled in the U.S. recently following the elimination of federal tax credits by the Trump administration. Ferrari shares were down nearly 3% recently.5

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