Stocks making the biggest moves premarket: Netflix, American Express, Chevron, Sarepta Therapeutics and more

Chevron and Hess shares saw significant gains as Chevron resolved a key dispute, clearing the path for its $53 billion acquisition of Hess. Conversely, Sarepta Therapeutics plunged 24% following a patient death in a Phase 1 study attributed to acute liver toxicity, while Netflix shares fell on a warning of lower second-half 2025 operating margins despite a Q2 beat. Elsewhere, railroad stocks Union Pacific and Norfolk Southern rose on potential M&A reports, 3M delivered strong Q2 earnings with raised guidance, and crypto-related equities rallied after new US legislation boosted Ether prices.

Analysis

The pre-market session revealed a market driven by distinct, company-specific catalysts rather than a single macroeconomic trend. In the M&A space, a significant development occurred as Chevron shares rose 3% and Hess jumped over 7% after Chevron won a legal dispute against Exxon Mobil, clearing a critical hurdle for its $53 billion acquisition of Hess. Similarly, merger speculation provided a lift to railroad operators, with Norfolk Southern climbing roughly 4% on reports of a potential deal with Union Pacific. Corporate earnings presented a largely positive picture, with several firms beating analyst estimates. 3M stood out, rising 2% not only on a Q2 earnings and revenue beat but also on a significant upgrade to its full-year sales growth guidance to 2.5% from 0.5%. Financial services firms also demonstrated strength; American Express, Interactive Brokers, and Charles Schwab all surpassed top and bottom-line forecasts, with Schwab noting an 11% year-over-year increase in new account openings. However, forward-looking guidance and specific metric misses tempered some results. Netflix shares fell 2% despite a quarterly beat, as it warned of lower operating margins in the second half of 2025. Western Alliance Bancorp also declined 2% after its net interest margin of 3.53% missed the 3.55% consensus estimate, overshadowing its otherwise positive results. The most significant negative event was in the biopharmaceutical sector, where Sarepta Therapeutics plunged 24% following a patient death in a Phase 1 study, raising material concerns about its clinical pipeline. Finally, the cryptocurrency sector saw broad-based gains, with Coinbase and Robinhood advancing, after the passage of major U.S. crypto legislation propelled the price of ether to a six-month high.

Key Decisions for Investors

• The resolution of the legal dispute significantly de-risks the Chevron-Hess merger, suggesting investors could re-evaluate arbitrage spreads or consider the enhanced strategic position of the combined entity.
• The 24% plunge in Sarepta Therapeutics stock reflects a material adverse clinical event, warranting extreme caution and close monitoring of further safety data and regulatory feedback before establishing or adding to a position.
• Despite strong current earnings from Netflix, the forward guidance on margin compression in 2025 introduces a key risk, suggesting a need to scrutinize long-term profitability models against rising content and marketing costs.
• Strong fundamental performance and positive guidance from companies like 3M, Charles Schwab, and Interactive Brokers may justify a bullish stance, particularly when contrasted with peers showing less certain outlooks.
• For regional banks like Western Alliance, investors should prioritize net interest margin (NIM) trends over headline earnings beats, as NIM compression can be a leading indicator of future profitability challenges.
• The rally in crypto-related equities following legislative progress highlights their high sensitivity to the regulatory environment, making it critical for investors to track the bill's progression as a primary valuation catalyst.