U.S. stock index futures rose on Friday after key inflation data.
- PCE Price Index: +0.3% M/M vs. +0.2% expected and -0.1% prior.
- Core PCE Price Index: +0.6% M/M vs. +0.5% expected and +0.1% prior.
Market Snapshot
At 8:40 a.m. ET, Dow e-minis were down 21 points, or 0.07%, S&P 500 e-minis were up 1.75 points, or 0.05%, and Nasdaq 100 e-minis were up 3.25 points, or 0.03%.
Pre-Market Movers
Nike – Nike slumped 11% in the premarket after it reported a 44% increase in inventories for its latest quarter, and said it would offer more discounts heading into the holiday season. The athletic footwear and apparel maker reported better-than-expected profit and revenue for its latest quarter.
Micron Technology – Micron gained 1.5% in the premarket after it beat estimates with its latest quarterly earnings, even as sales fell below forecasts. The chipmaker also issued a weaker-than-expected revenue outlook and said sales are being impacted by waning demand for consumer electronics.
Amylyx Pharmaceuticals – Amylyx surged 9.3% in the premarket after the FDA approved its new ALS drug. The treatment slows the progression of the disease, extends survival, and is the first ALS drug to gain FDA approval in five years.
Rent-A-Center – Rent-A-Center tumbled 18.1% in the premarket after the rent-to-own company cut its current-quarter earnings guidance. The company said current economic conditions have impacted retail traffic and customer payment patterns.
Blue Apron – The meal kit company’s shares initially fell in premarket action following news that Chief Financial Officer Randy Greben will step down on October 17 to take a position with another company. However, it subsequently erased those losses and rose 2.7%.
Generac – Generac added 1.6% in premarket trading after Cowen began coverage on the power equipment maker with an outperform rating. Cowen said a housing market slowdown and economic uncertainty are already priced into the stock.
Voya Financial – The financial services company’s stock was upgraded to overweight from neutral at Piper Sandler, citing a number of factors including attractive valuation and a product portfolio that benefits from inflation. Voya added 1.2% in premarket action.
Market News
Tesla China Denies the Rumor of Price Reductions
A media outlet reported that Tesla’s China-made Model 3 and Model Y will undergo significant price reductions. The maximum price cut for the Model Y was expected to reach 40,000 yuan ($5,623), while the starting price for a Model Y rear-wheel drive version would eventually drop to between 270,000 yuan and 290,000 yuan ($37,954 – $40,766). On the morning of the same day, Tesla China responded, claiming that this is “false information.”
Mark Zuckerberg Freezes Hiring at Facebook-Parent Meta
Facebook parent Meta Platforms Inc. has told employees that it will be implementing a hiring freeze and will be taking more steps to reduce the company's costs, according to people familiar with the matter.
CEO Mark Zuckerberg notified employees of the hiring freeze on Thursday during his weekly all-hands meeting. The announcement comes after The Wall Street Journal last week reported that Meta was planning to cut expenses by at least 10% in the coming months, including by trimming ranks.
Li Auto Officially Launches Li L8, Starts Taking Pre-Orders for Li L7
Li Auto today made its new SUV, the Li L8, official and began taking reservations for the next model, the Li L7, in an intensive move that signals that a premium SUV war is on the horizon in China.
In an online launch event today, Li Auto made the six-seat mid to large-size SUV Li L8 available with prices starting at RMB 359,800 ($50,730) and deliveries set to begin in late November.
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