NEW YORK — Wall Street appeared poised for a positive start to the trading week on Tuesday, with the S&P 500 index on track for a higher open amid gains in technology and commodity sectors. The upbeat sentiment followed a robust kickoff to February, driven by strong post-earnings performances from companies like Palantir Technologies and a rebound in precious metals prices. Investors are closely watching a series of corporate developments, including blockbuster mergers, executive shakeups, and analyst upgrades, as the market navigates ongoing enthusiasm for artificial intelligence and infrastructure investments.
Palantir Technologies shares surged more than 11% in premarket trading after the data analytics firm reported fourth-quarter results that exceeded Wall Street expectations. The company, known for its AI-driven software and consulting services, highlighted increased spending on AI data tools by both businesses and government agencies. "This is the fastest-growing, most lucrative software and consulting company," said Jim Cramer, host of CNBC's Mad Money, in his morning market commentary. "High margins and high growth." Cramer contrasted Palantir's trajectory with peers like Salesforce and ServiceNow, whose stocks have underperformed amid fears of AI disruption. He suggested Palantir's cost-saving potential could shield it from similar scrutiny, positioning it as a standout in the sector.
The positive momentum extended to semiconductor testing equipment maker Teradyne, whose shares climbed over 20% following better-than-expected fourth-quarter earnings. Management's guidance for the first quarter of fiscal 2026 significantly surpassed analyst forecasts, underscoring robust demand for its products in semiconductors and robotics. This comes as the chip industry continues to expand to support AI and automation needs, with Teradyne benefiting from the broader tech boom that has propelled related stocks higher throughout the year.
SanDisk, a key player in data storage, saw its shares rise another 4% after closing at record highs for four consecutive sessions. The company's stock has skyrocketed more than 180% year-to-date, fueled by the AI infrastructure trade that demands vast amounts of storage capacity for data centers. JPMorgan recently suspended its rating on SanDisk due to policy restrictions, a move that analysts attributed to regulatory considerations rather than fundamental concerns about the company's performance.
Not all reports were glowing, however. Eaton Corporation, a power management firm whose products power AI data centers, saw its shares drop more than 4% after a mixed fourth-quarter showing. While the company beat earnings-per-share estimates, it fell short on revenue. Guidance for the first quarter and full-year 2026, at the midpoints, also underwhelmed analysts' projections for earnings per share. Eaton's challenges highlight the uneven recovery in industrial sectors tied to tech expansion, even as demand for energy-efficient solutions grows.
In one of the day's most headline-grabbing announcements, Elon Musk's SpaceX is set to acquire his artificial intelligence startup xAI in what Reuters described as a record-setting deal. The transaction, which unifies Musk's rocket company with the creator of the Grok chatbot, reportedly values SpaceX at $1 trillion and xAI at $250 billion. If completed, it would mark the largest merger and acquisition in history, blending space exploration ambitions with cutting-edge AI development. Sources close to the matter indicated the deal aims to accelerate innovation at the intersection of aerospace and machine learning, though regulatory scrutiny is expected given the massive valuations involved.
The payments industry faced turbulence as PayPal announced a leadership change amid disappointing financial results. CEO Alex Chriss will be replaced by Hewlett-Packard Enterprise CEO Enrique Lores, following a quarter where profits and revenue missed expectations. Jamie Miller, PayPal's chief financial officer, will serve as interim CEO until Lores assumes the role next month. Shares of PayPal plunged 15% in response, reflecting investor concerns over the company's ability to maintain growth in a competitive digital payments landscape. PayPal has been under pressure from rivals like Stripe and traditional banks adapting to fintech trends.
Over at The Walt Disney Company, another high-profile CEO transition unfolded. Josh D'Amaro, current chairman of Disney Experiences, was named to succeed Bob Iger as CEO effective March 18. This marks the second time in six years that Disney has tapped a successor to Iger, who has steered the company through streaming wars, pandemic disruptions, and recent box-office hits. The move comes after a period of strategic shifts, including cost-cutting and a focus on theme parks and content franchises. Disney's announcement emphasized D'Amaro's deep experience in operations, particularly in experiential entertainment that has been a bright spot for the media giant.
Analyst optimism buoyed Alphabet Inc., the parent of Google, as Mizuho raised its price target on the stock to $400 from $365 while maintaining a buy rating. The firm expressed confidence in the fundamentals of large-cap advertisers, predicting an acceleration in the advertising market throughout 2026. Adding to the positive news, Alphabet's autonomous driving unit Waymo secured a $16 billion funding round at a $126 billion valuation. Alphabet itself committed $13 billion to the raise, signaling strong internal backing for the self-driving technology. The Google parent is scheduled to report earnings on Wednesday evening, with investors anticipating updates on AI integrations across its ecosystem.
GE Vernova also drew favorable attention from Mizuho, which lifted its price target to $714 from $660 and kept a hold rating. Analysts cited the company's service growth and expansions in gas turbine capacity as key drivers. Shares of the industrial firm, part of Jim Cramer's Charitable Trust portfolio, rose 1% in early trading. This upgrade reflects broader tailwinds in energy infrastructure, particularly as demand for reliable power sources rises to support data centers and electrification initiatives.
The confluence of these events paints a picture of a market energized by AI and tech innovation, yet tempered by leadership uncertainties and mixed corporate results. Gold and silver prices, which bounced sharply, provided additional support to the indices, with investors seeking safe-haven assets amid geopolitical tensions and inflation watch. Yesterday's strong February open set the stage, but Tuesday's premarket indicators suggest sustained buying interest, particularly in growth-oriented names.
Looking ahead, the earnings calendar remains packed, with Alphabet's report looming large. Market participants will scrutinize how tech titans are faring in monetizing AI advancements, a theme echoed across Palantir, Teradyne, and Waymo developments. Meanwhile, the proposed SpaceX-xAI merger could reshape competitive dynamics in both space and AI sectors, potentially drawing antitrust reviews from regulators.
Executive changes at PayPal and Disney underscore the high stakes for leadership in navigating digital transformation and entertainment evolution. For PayPal, Lores' arrival from HP brings expertise in hardware and enterprise solutions, which could inform strategies to bolster payment processing amid e-commerce slowdowns. At Disney, D'Amaro's promotion signals a pivot toward experiential revenue streams like parks and cruises, which have outperformed media segments post-pandemic.
Broader implications extend to portfolio strategies, as evidenced by Cramer's Charitable Trust holdings. While Eaton faced headwinds, gains in Palantir and GE Vernova illustrate selective opportunities in AI-adjacent industries. Investors are advised to monitor trade alerts from such trusts, noting delays like 45 minutes for alerts and 72 hours post-CNBC mentions before executions, per standard disclosures.
As the bell rings on Wall Street, the focus will shift to intraday trading volumes and any fresh catalysts. With the S&P 500's higher open, the market's resilience amid these headlines reinforces its position as a barometer for global economic health. Analysts like those at Mizuho project continued acceleration in key areas, but vigilance on guidance misses and valuation stretches remains essential for the weeks ahead.