Check out the companies making headlines before the bell:

• American Eagle Outfitters — Shares popped 4% following an upgrade by JPMorgan to overweight from neutral. The firm cited the retailer’s merchandising initiatives and operational changes for the call.
• Freeport-McMoRan — Shares jumped 1.9% after Bank of America upgraded the American mining company to buy from neutral, saying it has “blue chip copper exposure.”
• Molson Coors — Shares gained 1.9% after Goldman Sachs upgraded the brewing company to buy, saying the company can benefit as it expands its shelf space in retailers.

Read the full list here.

— Sarah Min

Although U.S. tech stocks have pulled back in recent weeks, with semiconductor companies lagging in particular, UBS says it remains positive on AI-related stocks.

AI demand is showing signs of broadening out beyond GPU computing, the firm wrote in a Tuesday note. New AI application launches and increasing adoption of AI across businesses contributes to the firm’s constructive view on the AI theme.

“In our view, the semiconductor and software industries offer the best opportunities for investors over the course of this year,” a group of strategists said in the note.

— Hakyung Kim

Although the recent volatility in oil prices has eased, several upward pressures still persist, including geopolitical tensions and rising global demand, according to Barclays.

Strategist Stefano Pascale said that a “further melt-up” could re-ignite inflation concerns and weigh upon the equity rally.

“History shows that investors cannot take for granted that the oil/equity correlation will stay positive, especially when worries of a potentially oil-induced inflation rebound remain acute. Additionally, geopolitical risks in the Middle East have shown no signs of abating, in spite of the brief oil rally pause,” Pascale wrote in a Tuesday note.

— Hakyung Kim

European stocks were slightly lower early Tuesday, with the pan-European Stoxx 600 index down by 0.15% at 8:20 a.m. in London.

Major bourses were in the red, with Germany’s DAX down 0.4% and France’s CAC 40 lower by 0.25%. The U.K.’s FTSE 100 nudged 0.08% lower.

Hong Kong’s monetary authority is reportedly considering deepening some of the investment connection schemes between the city and mainland China.

Speaking at the HSBC Global Investment Summit in Hong Kong, HKMA Chief Executive Eddie Yue said that there was capacity for greater “south bound” activity into Hong Kong, according to a Reuters report.

Yue told the HSBC Global Investment Summit in Hong Kong there was capacity for greater “southbound” activity from Chinese investors into Hong Kong’s financial markets.

The so-called northbound trading in the connect schemes allows offshore investors to buy China-listed products via Hong Kong, while southbound trading is designed for China-based investors to buy into Hong Kong products.

— Reuters

Lee Boo Jin, the CEO of South Korean hotel group Shilla Hotels, has sold about 5.2 million shares of electronics giant Samsung Electronics in a $326 million block sale, with the shares priced at 84,100 won apiece, according to Reuters.

A block sale is a large securities transaction at a negotiated price that tends to shield or lessen the impact of the sale on the price of the publicly traded stock.

South Korean media reported that the sale was to cover inheritance tax liabilities after the death of former Samsung chairman Lee Kun-hee.

The younger Lee is the late Lee Kun-hee’s eldest daughter, and also the younger sister of Samsung Electronics Executive Chairman Lee Jae-yong.

— Lim Hui Jie, Reuters

South Korean automakers Hyundai and Kia have signed a memorandum of understanding with Indian battery company Exide Energy for strategic co-operation in India’s EV market.

Exide said that both the parties will work together for the development, production and supply of battery cells for Hyundai Motor’s electric vehicles in the Indian market.

Hyundai said the move will position the company and Kia as “pioneers in applying domestically produced batteries” in their upcoming EV models in the Indian market.

Hyundai stock was down 0.55% on Tuesday, while Kia shares rose 0.65%.

— Lim Hui Jie

The U.S. government plans to offer $6.6 billion in subsidies to South Korea’s Samsung Electronics for expanding its chip output in Texas, according to a report by Reuters.

The report said the subsidy will go toward the construction of four facilities in Taylor, including one $17 billion chipmaking plant that Samsung announced in 2021.

The subsidy will also be for investment in an undisclosed location and Samsung will more than double its investment in the U.S. to over $44 billion as part of the deal, according to the report.

Samsung shares were mostly flat on Tuesday.

— Lim Hui Jie, Reuters

The S&P 500 ended Monday with a slight decline of 0.04%, but the real estate sector outperformed.

Apartment real estate investment trusts were the strongest names in the sector, with Camden Property Trust up 5.7%. The stock registered its best session since November 2022.

June gold futures touched an intraday record $2372.50/ounce before closing at new record of $2351.00, the 15th closing record of the year.

Gold also extended its year-to-date rally to 13.5%, although gold bugs need to remember that on an inflation-adjusted basis, gold’s all-time was $3460.77 when Jimmy Carter was president in January, 1980.

Silver futures are higher by 15.5% so far in 2024, while copper futures are up 9.9%. Aluminum is only ahead 3% in 2024, but still touched its highest Monday since February, 2023. Similarly, tin rose to its highest Monday since January, 2023, but has surged 18% in 2024.

All those moves pale beside the rocket ship known as cocoa, which touched an all-time high of $10,443 per metric tonne on Monday — bringing its 2024 rally to 131.5%.

— Scott Schnipper, Gina Francolla