U.S. stock index futures rose on Tuesday after a rough start to the week on fears of aggressive rate hikes by the Federal Reserve, with investors looking ahead to consumer confidence and jobs data later in the day.
Market Snapshot
At 7:50 a.m. ET, Dow e-minis were up 196 points, or 0.61%, S&P 500 e-minis were up 29.75 points, or 0.74%, and Nasdaq 100 e-minis were up 127.25 points, or 1.02%.
Pre-Market Movers
Best Buy – Best Buy gained 2.6% in the premarket after the electronic retailer beat Street forecasts on the top and bottom lines for its latest quarter, while comparable store sales declined less than expected.
Big Lots – The discount retailer reported a smaller-than-expected quarterly loss and better-than-expected revenue. Comparable store sales also fell less than analysts had forecast. The stock rose 2.7% in premarket trading.
First Solar – First Solar rose 1.9% in premarket action after announcing it would spend $1.2 billion to expand U.S.-based manufacturing, including a new factory in the southeast. The solar equipment maker earlier this year had said it was unlikely to build new U.S. facilities, but changed its strategy due to the tax incentives provided by the recently passed Inflation Reduction Act.
Twitter – Twitter fell 1% in premarket trading after Elon Musk sent a second deal termination notice. Musk first announced he was pulling out of his $44 billion deal to buy Twitter in early July. The second notice – detailed in an SEC filing – gives additional reasons for pulling out, including the contention that allegations detailed in the recent whistleblower complaint could have severe consequences for Twitter's business.
Baidu – Baidu reported better-than-expected profit and revenue for its latest quarter, with the China-based search engine company seeing a recovery in ad sales and stronger demand for its cloud-based offerings. Baidu shares added 3.8% in the premarket.
Bed Bath & Beyond – The housewares retailer’s stock surged 11.7% in the premarket after soaring 25% yesterday. The company – popular among “meme stock” traders – will deliver a business and strategic update Wednesday.
Lucid Motors – Lucid filed a so-called shelf offering to raise up to $8 billion. The electric vehicle maker said it has no plans to sell any securities at this time. Lucid slid 1.4% in premarket trading.
Netflix – Netflix is denying a Bloomberg report that it’s mulling a $7 to $9 monthly charge for its upcoming ad-supported streaming service. The company told the New York Post it is still in the early planning stages for the service and that no pricing decisions have been made. Netflix added 1.4% in premarket action.
SolarEdge Technologies – SolarEdge could be subject to an import ban, depending on the results of an International Trade Commission probe. Smaller solar equipment rival Ampt claims that SolarEdge’s power optimizers and inverters infringe two of its patents. SolarEdge gained 1% in premarket trading.
Peloton – Peloton needs more time to file its annual report for the year ending June 30, according to an SEC filing. The fitness company said it is still in the process of sorting out accounting related to its planned restructuring. The stock rose 1.4% in the premarket.
Market News
Best Buy Beats Sales Estimates As Discounts Spur Demand
Best Buy Co Inc reported a smaller-than-expected drop in quarterly comparable sales on Tuesday as steep discounts helped soften the blow to electronics demand from rampant inflation.
The company's comparable sales decreased 12.1% in the second quarter ended July 30, compared with analysts' estimates of a 12.6% fall, according to IBES data from Refinitiv.
Elon Musk Adds Whistleblower as New Reason to Cancel $44 Billion Twitter Deal
Elon Musk has cited the recent accusations from a Twitter Inc. whistle-blower as a new reason to terminate the $44 billion takeover of the social media platform.
Berkshire Sold 1.33 Million Shares of BYD H-Shares on Aug 24
Berkshire Hathaway, owned by legendary US investor Warren Buffett, began reducing its position in BYD after some rumors last month sparked volatility in the Chinese new energy car giant's stock price.
Berkshire Hathaway sold 1.33 million shares of BYD traded in Hong Kong on August 24 at an average trading price of HK$277.1 per share, according to an exchange filing.
Baidu Reports Quarterly Revenues of $4.43 Billion, Beat Estimates
China's search engine giant Baidu Inc beat quarterly revenue estimates on Tuesday, driven by a recovery in advertising sales and higher demand for its cloud products.
Total revenue stood at 29.65 billion yuan ($4.43 billion) in the second quarter, compared with analysts' average estimate of 29.30 billion yuan, according to Refinitiv data.
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