5 Things to Know Before the Stock Market Opens

Stock futures are falling premarket Tuesday as investors digest fresh corporate earnings reports; Palantir (PLTR) shares are sliding after reporting a jump in revenue on strong demand for its AI platform; executives from Goldman Sachs and Morgan Stanley said that a market correction is likely coming within the next two years; Starbucks (SBUX) announced a joint venture with Boyu Capital to run its China operations; Sarepta Therapeutics (SRPT) shares plunged after it released disappointing results for its trials of a treatment for a muscle-wasting disease.

Here’s what you need to know today.

Stock futures are falling premarket as the government shutdown stretches into its second month amid a blitz of corporate earnings reports. Futures tied to the tech-focused Nasdaq 100 are lower by 1.4% in early trading, while futures tied to the benchmark S&P 500 were down 1.1% and those tied to the blue chip Dow Jones Industrial Average were dropping 0.7%. The three leading U.S. indexes finished Monday mixed.

Bitcoin is trading at $104,500, down from a high of more than $111,000 over the weekend. Yields on the 10-year Treasury note, which can impact mortgage rates and a host of other consumer loans, declined to around 4.09% after hitting 4.11% yesterday. Gold futures were mostly flat at around $4,000 an ounce.

Palantir (PLTR) shares are falling despite record quarterly results from the software company that were driven by strong demand for its Artificial Intelligence Platform. Palantir reported adjusted earnings per share of $0.21 cents on revenue that jumped 63% year-over-year to a record $1.18 billion in the third quarter, well above analysts’ estimates compiled by Visible Alpha.

While Palantir still derives more of its domestic business from the government than corporations, its commercial segment drove much of the company’s growth in the quarter. CEO Alex Karp called the commercial segment a juggernaut” in a letter to investors in which he touted the company’s “otherworldly” growth. Palantir shares, which have more than doubled this year, were lower by 7% in recent trading.

Executives at top Wall Street banks said that investors should brace for a market correction of  more than 10% in the next 12 to 24 months. Morgan Stanley CEO Ted Pick and Goldman Sachs Group CEO David Solomon both told a Hong Kong financial summit that they see the possibility of a significant selloff in the next few months, according to news reports.

The executives said a market pullback could be a healthy effect as investors reassess the valuations of companies. The S&P 500 is trading at about 23 times forward earnings estimates, according to several data providers, above historical levels.

Starbucks (SBUX) said it was forming a joint venture with Boyu Capital to form a joint venture to operate its Chinese stores. The deal with the alternative asset management firm is valued at $4 billion, with Starbucks retaining a 40% stake in the operations. Starbucks has been seeing some success in its turnaround efforts, with same-stores sales growing in its most recent quarter after a year-and-a-half of declines. Shares of Starbucks, lower by 11% so far this year, were little changed in premarket trading.

Sarepta Therapeutics (SRPT) shares were plummeting after the pharmaceutical firm reported poor results for a trial of its treatment for the muscle-wasting disease Duchenne muscular dystrophy. The trial of 225 patients produced results that were not statistically more significant than a placebo. The company also reported a 17% year-over-year decline in revenue to just under $400 million. Shares of Sarepta were lower by more than 35% in premarket trading.

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