Wall Street futures fell on Monday, setting all three major U.S. stock indexes for a dour start to the week, as investors worried about hawkish signals from Federal Reserve policymakers in the face of slowing economic growth.
High-growth and technology companies such as Apple Inc and Tesla Inc fell 1.5% and 1.7%, respectively, in trading before the bell on Monday.
The CBOE Volatility index (VIX), Wall Street's fear gauge, rose to 23.15, its highest level in over two weeks.
Focus this week is on Fed Chair Jerome Powell's speech at a central banking conference in Jackson Hole on Friday for further cues on the central bank's monetary policy tightening path.
Market Snapshot
At 08:03 a.m. ET, Dow e-minis were down 308 points, or 0.91%, S&P 500 e-minis were down 47.75 points, or 1.13%, and Nasdaq 100 e-minis were down 202.00 points, or 1.52%.
Pre-Market Movers
Signify Health (SGFY) – Signify Health surged 38.5% in premarket trading as a potential bidding war escalates for the home health services provider. Amazon.com (AMZN) and UnitedHealth (UNH) are now said to be among the bidders, according to The Wall Street Journal, which had previously reported that CVS Health (CVS) was eyeing Signify.
Bed Bath & Beyond (BBBY) – Bed Bath & Beyond is sliding another 14.6% in premarket trading after Friday’s more than 40% plunge. That sell-off followed news that investor Ryan Cohen had sold his shares in the housewares retailer. Bloomberg is also reporting that certain suppliers have halted shipments to Bed Bath & Beyond due to unpaid bills.
AMC Entertainment (AMC) – The movie theater chain’s stock plummeted 34.2% in the premarket ahead of the debut of AMC’s so-called “APE” preferred equity units. CEO Adam Aron tweeted a reminder to investors that the total value of their AMC holdings would be a combination of the regular shares plus the new units, which were granted as a special dividend. AMC shares have also been pressured by the financial troubles surrounding Cineworld, the British parent of U.S. movie theater chain Regal Cinemas.
Ford (F) – Ford lost 3% in the premarket following a Friday jury ruling assessing a $1.7 billion verdict against the automaker. The case involved a fatal crash that centered on the roof strength in older model Super Duty pickup trucks.
Occidental Petroleum (OXY) – Occidental Petroleum gave back 2.2% in premarket action following a nearly 10% gain Friday. That followed news that Warren Buffett’s Berkshire Hathaway (BRK.B) had received permission from regulators to buy up to 50% of the energy producer. Berkshire is already Occidental’s largest shareholder.
Tesla (TSLA) – Tesla CEO Elon Musk said the price of the company’s Full Self Driving software would rise by $3,000 to $15,000 next month, following the wide release of an updated version of the software. Tesla shares fell 1.7% in the premarket.
Netflix (NFLX) – Netflix fell 2.7% in premarket trading after CFRA downgraded the stock to “sell” from “hold.” The firm said Netflix is likely to underperform the S&P 500 after surging 40% from its mid-July lows.
VF Corp. (VFC) – VF was downgraded to “market perform” from “outperform” at Cowen, which cited uncertainty about VF’s upbeat guidance for its Vans footwear and apparel brand. VF slid 3.2% in premarket action.
DocuSign (DOCU) – The electronic signature company was downgraded to “sector perform” from “outperform” at RBC Capital. RBC sees a long path to a turnaround amid execution issues and the current absence of a permanent CEO, among other issues. DocuSign fell 4.4% in premarket trading.
Market News
Buffett's Berkshire Hathaway Wins OK to Buy 50% Occidental Stake
Warren Buffett’s Berkshire Hathaway Inc. won approval from US regulators to buy as much as 50% of Occidental Petroleum Corp. after spending months snapping up its shares. Occidental’s stock had its biggest gain in five months.
The Federal Energy Regulatory Commission said in a filing published Friday that Berkshire’s proposed stock purchases are “consistent with the public interest.” Berkshire applied for the authorization on July 11, FERC said.
Berkshire has spent this year wagering more on Occidental after first making a bet on the Houston-based oil company three years ago. Earlier this month, Berkshire reported that it now holds 188 million shares of Occidental’s common stock, a little more than 20% of its 931 million shares outstanding.
Musk Says Tesla Raising Full Self-Driving Price to $15,000
Tesla Inc. will start charging $15,000 for the driver-assistance features it calls Full Self-Driving, raising the price of the controversial product for the second time this year.
The hike for customers in North America will take effect Sept. 5, Chief Executive Officer Elon Musk tweeted Sunday. The current $12,000 price will be honored for orders made before that date, he wrote.
Comments