U.S. stock index futures on Friday extended their loss-making streak on persistent concerns that the Federal Reserve's resolve to combat runaway inflation could tip the economy into a recession.
Market Snapshot
At 7:55 a.m. ET, Dow e-minis were down 322 points, or 0.96%, S&P 500 e-minis were down 37.5 points, or 0.95%, and Nasdaq 100 e-minis were down 59.5 points, or 0.52%.
Pre-Market Movers
Accenture(ACN) – The consulting firm’s shares fell 1.5% in the premarket despite beating estimates on the top and bottom lines for its latest quarter. Accenture issued a revenue range for the current quarter whose midpoint is below current consensus and said the stronger U.S. dollar will impact its fiscal 2023 results by 5%.
Darden Restaurants(DRI) – The parent of Olive Garden and other restaurant chains reported better-than-expected profit and revenue for its latest quarter, and exceeded analyst forecasts for same-restaurant sales. Darden also raised the lower end of its 2023 earnings guidance range. Its stock rose 1% in premarket trading.
Winnebago Industries(WGO) – Winnebago’s quarterly results beat top and bottom line estimates, although profits declined from a year ago due to the impact of inflation and supply disruptions. The recreational vehicle maker’s shares fell 1.5% in premarket action.
Maxar Technologies(MAXR) – The satellite owner and operator’s shares more than doubled in the premarket after it agreed to be acquired by private equity firm Advent International for $53 per share. Maxar — whose technology powers the popular GoogleMaps app — closed at $23.10 per share on Thursday.
Guardant Health(GH) – Guardant shares plunged 33.4% in the premarket following trial results for its DNA blood test for colorectal cancers. The test detected 83% of colorectal cancers and 13% of advanced adenomas, but the test was not as effective as the Cologuard stool-based test made byExact Sciences(EXAS). Exact Sciences shares rallied 16.9% in premarket trading.
Meta Platforms(META) – The Facebook and Instagram parent was upgraded to overweight from neutral at J.P. Morgan Securities, which pointed to several factors including an increase in cost controls and an easing of the impact ofApple’s privacy rule changes. Meta rose 1.9% in premarket trading.
Adobe(ADBE) – Adobe shares jumped 4.6% in the premarket after the software company reported better-than-expected quarterly earnings and revenue that was in line with analyst forecasts. Adobe also issued upbeat current quarter guidance.
Scholastic(SCHL) – Scholastic shares leaped 5.7% in off-hours trading after the education and media company reported upbeat quarterly earnings. Scholastic’s profit margins expanded during the quarter and it said the Children’s Books business performed particularly well.
U.S. Steel(X) – U.S. Steel issued better-than-expected current quarter guidance and said commercial demand for steel is on the upswing in the U.S. The stock rose 1% in the premarket.
Market News
Accenture Beats Quarterly Revenue Estimates Amid Higher IT Spending
Accenture Plc surpassed Wall Street estimates for quarterly revenue on Friday, a sign that IT spending is holding strong even as economic headwinds pressure businesses.
Revenue grew 5% to $15.7 billion in the quarter ending Nov. 30, inching past analysts' estimate of $15.58 billion, according to Refinitiv. New bookings in the quarter were $16.22 billion, down by 3%.
Advent to Buy Maxar Technologies for About $4 Billion
Advent International agreed to buy Maxar Technologies Inc. in a deal that values the satellite owner and operator at about $4 billion.
Advent is paying $53 a share for Maxar, executives at the private-equity firm said. Shares of Maxar, which are down 23.5% since the beginning of the year, closed at $23.10 on Thursday.
Ericsson Shares Extend Fall After Outlook Disappoints
Shares in Sweden's Ericsson extended their losses on Friday a day after a strategy update in which the telecom equipment maker said several of its more profitable markets showed signs of slowing down.
The company, one of the world's biggest suppliers of 5G technology, told investors it wouldonly reach the lower end of its long-term targetof a 15-18% profit (EBITA) margin by 2024.
Hong Kong Bitcoin, Ether Crypto ETFs Raise $79 Million in Shadow of FTX Crisis
A pair of Hong Kong exchange-traded funds investing in Bitcoin and Ether futures raised $79 million as the city pushes ahead with a plan to become a crypto hub even as the sector globally reels from the FTX collapse.
The CSOP Bitcoin Futures and CSOP Ether Futures ETFs, due to be listed later Friday, achieved $59 million and $20 million of initial investment respectively, according to a statement from issuer CSOP Asset Management Ltd.
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