【US Pre-Market】Retail Sales Data Ahead as Applied Materials Drops Over 5%, SanDisk Rises Over 7%

TradingKey - On Friday (August 14) ET, futures on the three major U.S. stock indices were mixed pre-market, with the market shifting to a wait-and-see stance after the S&P 500 set another record closing high. U.S. July PPI was unexpectedly flat, further easing concerns over interest rate hikes, but investors are still awaiting today's release of July retail sales and the University of Michigan consumer sentiment index to assess whether U.S. consumer resilience is sufficient to support high U.S. stock valuations.

As of press time, Dow futures were down 0.14%, S&P 500 futures rose 0.1%, and Nasdaq 100 futures gained 0.23%.

Performance of futures on the three major U.S. stock indices, Source: Investing

In commodities, gold (XAUUSD) fell back slightly to around $4,350; international oil prices rose slightly, with WTI (USOIL) crude trading near $81.6 and Brent crude holding near $87.2. Although OPEC and the IEA previously lowered demand expectations, attacks on tankers near the Strait of Hormuz and expectations of escalated U.S. sanctions against Iran continue to limit the downside for oil prices.

In cryptocurrencies, Bitcoin (BTC) fell below $63,000, trading near $62,800. Although market concerns about the Fed continuing to raise interest rates in September have diminished, crypto assets have not visibly benefited, with capital flowing more into main U.S. stock themes such as AI, semiconductors, and software.

Market Moves

Applied Materials (AMAT) fell over 5% in pre-market trading. The company's third-quarter adjusted earnings per share reached $3.50, above market expectations of $3.40; revenue grew 25% year-over-year to $9.12 billion, also beating market expectations. However, as the company recorded $220 million in unrealized investment losses, GAAP EPS came in below expectations, weighing on pre-market shares. Fourth-quarter revenue and adjusted EPS guidance both topped market expectations, but investors believed earlier gains in AI semiconductor equipment stocks were sizeable, and the degree of the earnings beat was not enough to keep driving valuations upward.

SanDisk (SNDK) rose over 7% in pre-market trading. JPMorgan resumed coverage of SanDisk with an "Overweight" rating and a target price of $2,250. Previously, at its Investor Day, the company set targets to achieve mid-to-high double-digit annual revenue growth and an adjusted gross margin of approximately 80% by 2030, reinforcing market confidence in long-term demand for AI storage and NAND.

Reddit (RDDT) rose over 12% in pre-market trading. S&P Dow Jones Indices announced that Reddit will be added to the S&P 500 Index, replacing AvalonBay Communities. Index inclusion typically brings passive fund allocation demand, driving Reddit's sharp pre-market gain.

Intel (INTC) rose nearly 2% in pre-market trading. Overall sentiment in the semiconductor sector remains boosted by the AI hardware and memory chains. Although the company's previous expansion of its share offering size raised dilution concerns, Intel recovered in pre-market trading amid cooling PPI and easing valuation pressure on tech stocks.

Drone and defense stocks strengthened in pre-market trading. U.S. President Trump announced new tariffs on certain drones and key components, as well as policy arrangements supporting domestic drone manufacturing. Related stocks such as AeroVironment (AVAV), Kratos Defense (KTOS), and Ondas (ONDS) attracted attention.

Market News

U.S. July retail sales will be released today. According to the U.S. Census Bureau schedule, July retail sales data will be published at 8:30 a.m. ET on August 14. The market expects retail sales to grow modestly month-over-month, and the data will influence investor assessments of U.S. consumer resilience, corporate earnings, and soft-landing prospects.

U.S. July PPI was unexpectedly flat. U.S. Department of Labor data showed that July PPI was unchanged month-over-month, below market expectations of a 0.2% increase; the year-over-year gain slowed from 5.5% in June to 4.7%. Easing energy and food prices relieved wholesale inflation pressures, further weakening market bets on a September rate hike by the Federal Reserve.

Trump announced tariffs on drone imports. The U.S. government will impose a 100% tariff on certain drones with military applications and a 25% tariff on other drones, while introducing policies to support the domestic U.S. drone supply chain. The measure primarily targets Chinese drone technology and could also alter the landscape for U.S. defense and commercial drone procurement.

A tanker was attacked near the Strait of Hormuz, and the U.S. plans to escalate financial sanctions on Iran. According to reports, a tanker attempting to leave the Persian Gulf sustained minor damage from a drone attack, heightening market concerns over the safety of the Strait of Hormuz shipping lane. U.S. Treasury Secretary Scott Bessent stated that the U.S. will soon impose tougher financial sanctions on Iran.

Key Data and Events Preview

At 8:30 a.m. ET on August 14, the U.S. will release its July retail sales data.

At 10:00 a.m. ET on August 14, the U.S. will release its June business inventories data.

At 10:00 a.m. ET on August 14, the U.S. will release the preliminary August University of Michigan Consumer Sentiment Index and inflation expectations.