U.S. stocks face lower open as Fed outlook, analyst calls shape Tuesday trading
U.S. equity futures point slightly lower as investors weigh elevated oil prices, high Treasury yields and a looming Federal Reserve rate decision. The market is also digesting fresh analyst moves on companies including Eli Lilly, Corning and Etsy, alongside deal developments in the utility sector.
Highlights
- Eli Lilly upgraded to buy at Berenberg with a $1,400 target, implying 23% upside, citing underappreciated non-obesity drug assets and multibillion-dollar sales potential.
- Mizuho maintains buy on Corning but cuts price target to $180 from $210 after a $2 billion stock sale and 13.7% share drop, citing multiple compression.
- Dominion and NextEra increase merger-linked bill credits to $10 per month for four years to address consumer concerns and secure support for their $67 billion deal.
Analyst actions, merger concessions and consumer pressure
According to CNBC, Eli Lilly receives an upgrade to buy from hold at Berenberg, with a $1,400 price target implying roughly 23% upside from the previous close. Analysts argue the market is undervaluing Lilly's acquisition activity beyond obesity drugs, saying assets outside that segment could support multibillion-dollar sales.Mizuho keeps its buy rating on Corning but cuts its price target to $180 from $210, citing multiple compression after the company's $2 billion stock sale. Corning shares fall 13.7% in the previous session following the equity raise, though they are steady in early trading.
In the utility sector, Dominion and NextEra sweeten consumer benefits tied to their planned $67 billion merger by offering residential customers a $10 monthly bill credit for four years, up from an earlier two-year proposal. The move appears aimed at addressing concerns linked to data center growth and winning broader support for the transaction.
Consumer-facing names show mixed momentum. Dave & Buster's drops more than 13% premarket after missing revenue and earnings expectations, even as its 2.9% same-store sales decline is less severe than feared. Etsy, by contrast, is upgraded to buy from hold at Oppenheimer with a $90 price target, as analysts say product improvements and AI-driven search gains are reducing reliance on Google under Chief Executive Kruti Patel Goyal's turnaround effort.
Our earlier report on midday trading moves highlighted how analyst calls and deal headlines were reshaping sector performance, with AI infrastructure and chip names swinging as investors debated the pace of AI development. We noted that renewed AI safety warnings pressured semiconductors and some data center-linked stocks, while software and cybersecurity shares showed relative strength amid broader cross-currents such as M&A activity and shifting risk sentiment.