Most Important News

1. Tesla Motors Sees Nearly 45% Q1 Sales Growth in Europe Amid Recovery
2. Pentagon Expands AI Collaboration with Tech Giants
3. Apple Surges Premarket on Strong Earnings and Guidance

Dow Jones Industrial Average futures rose on Friday, boosted by Apple Inc.(AAPL.US) shares, while oil prices fell as a new month of trading got underway.

Futured tied to the Dow Jones Industrial Average(DJI.US) advanced 210 points, or 0.4%. S&P 500 index(SPX.US) futures gained 0.3%, while NASDAQ-100(NDX.US) futures hovered around the flatline.

Shares of Apple climbed more than 3% in premarket trading after the consumer tech giant posted a fiscal second-quarter earnings and revenue beat. Not only that, the company’s revenue outlook for the current quarter was better than expected, overshadowing the fact that iPhone revenue fell short of estimates for the second time in three quarters.

As of 03:56 PM Riyadh Time, top pre-market movements are as follows:

US Weighs Imminent Iran Military Strikes

US military action against Iran nears a decision as negotiations face collapse as early as next week. President Trump reviewed tactical options with General Brad Cooper on May 1 to pressure the Strait of Hormuz. Consequently, Israeli officials are bracing for conflict, anticipating potential US strikes against Iranian energy, gas, and government infrastructure to force diplomatic movement.

Low Inventories Mandate Hormuz Channel Reopening

JPMorgan warns that global oil distribution faces failure as usable inventories plunge toward operational limits. Of 8.4 billion barrels in total stock, only 800 million are accessible, with 280 million already consumed. Therefore, the Strait of Hormuz must reopen by September to prevent a systemic circulation collapse.

Nasdaq Rule Change Enables Predict Options

The SEC approved a rule change for Nasdaq to list "Outcome-Related Options" on its MRX exchange on April 30. These OROs track the NASDAQ-100(NDX.US) and its micro counterpart, allowing traders to bet on specific index levels. This regulatory breakthrough introduces a simplified binary settlement mechanism to mainstream US securities exchanges, effectively turning complex market benchmarks into straightforward "yes or no" predictions.

Tech Stocks Mostly Decline Premarket, AAPL Rises

Major US tech stocks saw premarket declines, with Micron Technology, Inc.(MU.US) and Intel Corporation(INTC.US) dropping around 2%. Other giants, including Amazon.com, Inc.(AMZN.US), Advanced Micro Devices, Inc.(AMD.US), and Alphabet Inc. Class C(GOOG.US), experienced slight dips. Meanwhile, Apple Inc.(AAPL.US) surged nearly 4% following its earnings report.

Western Digital Corporation and Sandisk Corporation Fall Premarket Despite Strong Earnings

Western Digital Corporation(WDC.US) dropped over 7% and Sandisk Corporation(SNDK.US) fell more than 6% premarket, despite both companies exceeding market expectations. Analysts noted that the guidance lacked surprises. After the market closed on April 30, $SNDK reported a Q3 earnings far above expectations and forecasted a 35% sequential revenue increase for Q4. Analysts highlighted the strong AI storage cycle but noted the stock's significant gains.

Tesla Motors Sees Nearly 45% Q1 Sales Growth in Europe Amid Recovery

Tesla Motors, Inc.(TSLA.US)'s European sales rebounded strongly, rising nearly 45% YoY in Q1 after two years of decline. April registrations grew in key markets like France, Denmark, and the Netherlands, driven by surging EV demand following higher oil prices amid geopolitical tensions. Additionally, Tesla gained regulatory approval in the Netherlands for its driver-assistance software, with plans for EU-wide certification.

Meta Platforms Faces Investor Fatigue Amid $25B Bond Issuance

Meta Platforms(META.US) issued $25B in investment-grade bonds, marking its second large-scale issuance in six months. Pricing premiums exceeded October levels, signaling investors' demand for higher returns amid growing concerns over Meta's AI investments and future outlook. Market sentiment suggests skepticism about the company's ability to generate returns on its AI spending.

Pentagon Expands AI Collaboration with Tech Giants

The U.S. Pentagon has signed agreements with SpaceX, OpenAI, Alphabet Inc. Class A(GOOGL.US), and NVIDIA Corporation(NVDA.US) to integrate advanced AI tools into its secure military networks. Newly signed partners include Nvidia, Microsoft Corporation(MSFT.US), Reflection AI, and AWS (Amazon.com, Inc.(AMZN.US)), all approved for military operational use. This marks a growing trend of tech giants collaborating with the Department of Defense to enhance AI capabilities in confidential networks.

Apple Surges Premarket on Strong Earnings and Guidance

Apple Inc.(AAPL.US) rose nearly 4% premarket as it reported record revenue and EPS for the quarter ending in March, with a 17% and 22% increase, respectively. iPhone revenue grew 22%, slightly above analyst expectations. Service revenue rose 16%, hitting a three-year high, while Greater China revenue jumped 28%. $AAPL increased its dividend by 4% and authorized a US$100 billion buyback. Revenue guidance for the current quarter is up 14%-17%, exceeding forecasts, with a projected gross margin of 48.5%.

Reddit Soars Over 12% Premarket on Strong Q2 Guidance

Reddit, Inc. Class A(RDDT.US) surged over 12% premarket after announcing robust Q2 guidance. Expected revenue is between $715 million and $725 million, surpassing the market forecast of $711.6 million. Adjusted EBITDA is projected at $285 million to $295 million, exceeding analyst expectations of $277.1 million. Active advertisers rose 75% year-over-year, with revenue up 69% to $663 million. Daily active users increased 17% to 126.8 million, and ARPU grew 44%. Reddit is enhancing ad efficiency with AI tools, with conversion-focused ad revenue now over 60% of total ad income.

Atlassian Jumps Over 19% Premarket on Strong Q3 Results and Upgraded Guidance

Atlassian(TEAM.US) surged over 19% premarket after reporting Q3 revenue of $1.787 billion, beating the $1.696 billion forecast. EPS reached $1.75, surpassing the $1.33 estimate. The company raised its fiscal year ending June revenue growth outlook to 24%, up from 22%, with slight increases in cloud and data center revenue projections. Adjusted gross and operating margins were also revised higher. Shares had gained over 20% in after-hours trading following the announcement.

Twilio Soars Nearly 19% Premarket on Strong Q1 Results and Raised Growth Forecast

Twilio(TWLO.US) rose nearly 19% premarket after reporting Q1 revenue of $1.41 billion, a 20% year-over-year increase, surpassing the $1.34 billion estimate. Organic growth accelerated to 16%, above the expected 10.5%. The company forecasts Q2 revenue at $1.425 billion, a 16% increase, exceeding market expectations by 2.5%. Full-year organic growth guidance was raised from approximately 8.5% to 10%.

Roku Surges Over 7% Premarket on Strong Q1 Results

Roku, Inc. Class A(ROKU.US) reported Q1 revenue of US$1.25 billion, a 22.4% increase year-over-year, surpassing the US$1.2 billion forecast. Net profit reached US$85.7 million, reversing last year’s loss, with diluted EPS of US$0.57, exceeding the US$0.33–US$0.35 estimate. The company attributed its success to a recovering ad market and improved platform efficiency, raising its full-year guidance.

Roblox Drops 23% Premarket After Cutting Booking Forecast

Roblox Corp. Class A(RBLX.US)'s Q1 report showed a diluted EPS loss of US$0.35, widening from last year's US$0.32 loss but beating the expected US$0.41 loss. Revenue rose to US$1.44 billion from US$1.04 billion, below the US$1.74 billion forecast. The company anticipates Q2 revenue between US$1.39 billion and US$1.45 billion, falling short of the US$1.88 billion analyst expectation, leading to a 23% premarket drop.

Estee Lauder Companies Soars Nearly 11% Premarket on Strong Fiscal Q3 Results

Estee Lauder Companies Inc. Class A(EL.US) reported fiscal Q3 net sales of US$3.71 billion, surpassing the US$3.69 billion estimate. Adjusted EPS reached US$0.91, exceeding the expected US$0.65. This performance led to a nearly 11% surge in premarket trading.

Moderna Jumps Over 10% Premarket on Strong Q1 Revenue

Moderna(MRNA.US) reported Q1 revenue of US$389 million, significantly higher than the previous year's US$108 million and above market expectations. This led to a premarket surge of over 10%.