U.S. stock index futures fell on Thursday on worries of a global economic downturn from aggressive interest-rate hikes by central banks and risks of a potential contagion from a turmoil in UK markets.
Market Snapshot
At 8:00 a.m. ET, Dow e-minis were down 179 points, or 0.60%, S&P 500 e-minis were down 29.5 points, or 0.79%, and Nasdaq 100 e-minis were down 126 points, or 1.09%.
Pre-Market Movers
CarMax – CarMax shares slumped 12.1% in premarket trading after the auto retailer missed estimates on both the top and bottom lines for its latest quarter. CarMax said “affordability challenges” led to a sharp drop in sales in the final months of the quarter.
Bed Bath & Beyond – The housewares retailer posted a wider-than-expected quarterly loss and sales that fell short of consensus. Gross margins fell as the company moved to clear out excess inventory, and the stock jumped 4% in the premarket.
Rite Aid – Rite Aid posted a smaller-than-expected loss for its latest quarter and the drug store operator’s revenue was slightly above analyst forecasts. However, Rite Aid cut its adjusted earnings guidance range for the full year, and its shares tumbled 14.2% in premarket action.
Vail Resorts – The resort operator’s shares rallied 4.1% in premarket trading after reporting a smaller-than-expected quarterly loss and revenue that beat analyst estimates. Vail said it is seeing strong demand for ski season passes and full-year sales that have rebounded past pre-pandemic levels.
MillerKnoll – MillerKnoll fell 7.3% in the premarket after its quarterly profit beat analyst estimates, although revenue fell short. The office furniture maker noted a tough macroeconomic environment and announced various steps to improve near-term profit and cash flow, including reduced spending and a voluntary retirement program.
PG&E – The utility company filed for permission from California regulators to separate its non-nuclear generation assets into a standalone subsidiary. Shares added 1.2% in premarket trading.
Jefferies Financial – Jefferies shares rose 1.6% in premarket action after posting a better-than-expected quarterly profit. The investment firm’s results were helped by upbeat merchant banking results offsetting a slide in dealmaking activity.
Occidental Petroleum – Berkshire Hathaway (BRK.B) bought 5.99 million more Occidental Petroleum shares this week, according to an SEC filing. That raises Berkshire’s stake in the energy producer to 20.9%. The purchases came after Occidental shares lost about 20% of their value in less than a month. Occidental added 1% in premarket trading.
Warner Bros. Discovery – The media giant is being sued by shareholders for allegedly making false statements about the performance of its HBO Max streaming service ahead of the merger of the former Discovery Communications and AT&T’s Warner Media unit. The stock fell 1.6% in the premarket.
Market News
Palantir Extends Controversial Defense Contract That Google Abandoned
Palantir Technologies Inc. has reupped and expanded more contracts with the US government that have been controversial within Silicon Valley.
The Defense Department awarded the data analysis software company a broad deal to develop and deliver artificial intelligence and machine learning capabilities for the Special Forces, the Joint Staff and all branches the US armed services. The deal is worth up to $229 million over one year, the company announced Thursday.
Bed Bath & Beyond Quarterly Loss Widens on Merchandising Issues
Bed Bath & Beyond Inc on Thursday reported a bigger quarterly loss as the embattled home goods chain struggled to stock its shelves with in-demand styles and people cut back on spending amid decades-high inflation.
Once known to be a "category killer" in home goods, Bed Bath's stock and fortunes have slumped after its move to sell more store-branded products flopped and led to a reshuffle of its management team earlier this year.
Singapore Authorised Pfizer Covid-19 Vaccine for Children Aged 6 Months to 4 Years
Pfizer's Comirnaty Covid-19 vaccine was on Thursday authorised for use on children aged six months to four years old.
In a statement, the Health Sciences Authority (HSA) said it had carefully considered the clinical data and assessed that the benefits outweighed the risks in administering the Comirnaty vaccine in children in this age group.
Nio Enters Race For Lithium With Australian Investment
Nio Inc. has agreed to invest in an Argentine lithium mining project through a new tie-up with Australia’s Greenwing Resources Ltd. This move looks suspiciously similar to a similar race by solar panel makers to invest in polysilicon a decade ago when the solar industry began to take off and prices for their key raw material soared.
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