U.S. stock futures traded lower in early pre-market trade after the Dow Jones jumped more than 400 points in the previous session.
Market Snapshot
At 07:52 a.m. ET, Dow e-minis were down 127 points, or 0.38%, S&P 500 e-minis were down 24.75 points, or 0.59%, and Nasdaq 100 e-minis were down 121.75 points, or 0.94%.
Pre-Market Movers
Turning Point Therapeutics(TPTX) – The biopharmaceutical company’s shares more than doubled in premarket trading after agreeing to be acquired byBristol Myers Squibb(BMY) for $76 per share in cash, or $4.1 billion. Turning Point specializes in cancer treatments.
Lululemon(LULU) – Lululemon shares rose 1% in premarket trading after the athletic apparel and leisurewear maker reported a better-than-expected quarter and raised its full-year forecast. Lululemon beat estimates by 5 cents with a quarterly profit of $1.48 per share, amid continued strong demand for premium sportswear.
RH(RH) – RH slipped 4% in the premarket after the luxury home goods company issued a weaker-than-expected revenue outlook for the full year. RH reported better-than-expected profit and sales for its latest quarter and announced a $2 billion expansion of its stock buyback program.
CrowdStrike(CRWD) – CrowdStrike fell 4.3% in premarket action even though the cybersecurity company posted better-than-expected results for its latest quarter and issued an upbeat outlook. CrowdStrike stock had surged 7.8% Thursday ahead of the earnings report.
Kohl’s(KSS) – Kohl’s shares rallied 7.3% in premarket trading after the Wall Street Journal reported that the retailer received takeover bids from private equity firm Sycamore Partners and retail holding company Franchise Group. Sycamore’s bid is said to value Kohl’s in the mid-$50s per share, while Franchise Group is offering about $60. Kohl’s had closed Thursday at $41.18.
Tesla(TSLA) – Tesla shares slid 4.7% in the premarket following a report that CEO Elon Musk ordered an immediate hiring freeze and a 10% reduction in staff. The order came in a memo seen by Reuters, which quoted Musk as saying he feels “super bad” about the economy.
Coinbase(COIN) – Coinbase is extending a hiring freeze and rescinding some job offers that had been accepted. The cryptocurrency exchange operator said in a blog post that it would pause hiring for “as long as this macro environment requires.” Coinbase fell 3.7% in premarket trading.
Alaska Air(ALK) – The airline boosted its current-quarter revenue outlook, saying it is experienced sustained strong demand. Alaska Air also said stronger revenue is offsetting higher costs for fuel. The stock added 1% in the premarket.
Okta(OKTA) – The identity management software company’s stock surged 15.6% in the premarket after it reported better-than-expected results for its fiscal first quarter. Okta said it is not seeing any impact from the security breach of its systems in March, nor from macroeconomic conditions. The premarket surge in Okta shares follows a nearly 11% gain in Thursday’s trading.
Chegg(CHGG) – The education technology company’s shares rallied 6.3% in premarket trading after it announced a $1 billion increase in its share repurchase program.
PagerDuty(PD) – The cloud computing company reported better-than-expected revenue for its latest quarter and a smaller-than-expected loss. The company also anticipates it will report an annual profit next year. PagerDuty added 3.2% in the premarket.
Market News
Spirit Airlines, JetBlue Lock Horns over Takeover
The battle to snap up Spirit Airlines is heating up. Frontier Group Holdings Inc has agreed to pay a break-up fee of $250 million in a bid to salvage its $2.9 billion acquisition of Spirit Airlines.
JetBlue Airways Corp, which is locked in a takeover battle for Spirit with Frontier Group, has argued that a deal would help the companies better compete with the "Big Four" U.S. airlines that control nearly 80% of the passenger market in the country.
American Airlines Raises Second-Quarter Revenue Forecast
American Airlines Group Inc lifted its revenue forecast for the second quarter on Friday, citing robust demand and a strong pricing environment.
The airline said it now expects revenue for the period to rise between 11% and 13% over pre-pandemic levels, compared with its prior view of a 6% to 8% increase.
Alibaba Is Said to Replace Lazada CEO in Southeast Asia Shakeup
Alibaba Group Holding Ltd. replaced Lazada Group Chief Executive Officer Chun Li with the head of its Thailand business and one-time business assistant to Alibaba CEO Daniel Zhang as competition in Southeast Asia intensifies.
James Dong, 42, is taking the reins of Lazada, Alibaba’s Southeast Asian arm, with immediate effect while Li will serve as adviser to Lazada Group Chairman Jiang Fan and remain on Lazada’s board of directors, the company said Friday in a statement.
Walmart to Add 4,000 Jobs with Four New U.S. Fulfillment Centers
Walmart Inc announced plans on Thursday to open four new fulfillment centers in the United States over the next two years, creating 4,000 new jobs that will expand its delivery network and make workers' jobs easier.
The moves come as companies struggle to find and retain workers in a tight labor market. The nation's largest retailer also plans to widen to all global employees an education and training program launched for U.S. workers in 2016.
Comments