U.S. stock index futures slipped on Friday as investors worried about hawkish signals from Federal Reserve Chair Jerome Powell at the annual Jackson Hole symposium amid fears of slowing economic growth.
Powell's speech at 1000 a.m. ET will be scrutinized for any indication that an economic slowdown might alter the Fed's monetary policy tightening path and if the central bank can achieve a "soft landing."
Market Snapshot
At 07:59 a.m. ET, Dow e-minis were down 49 points, or 0.15%, S&P 500 e-minis were down 11.25 points, or 0.27%, and Nasdaq 100 e-minis were down 47.75 points, or 0.36%.
Pre-Market Movers
Electronic Arts (EA) – The video game company’s stock jumped 12% in the premarket on a Swedish media report that Amazon.com (AMZN) will announce an offer today to buy EA.
Affirm Holdings (AFRM) – Affirm slumped 13.1% in the premarket following a larger than expected quarterly loss and a weaker than expected outlook. The provider of buy now, pay later services saw revenue top Street forecasts.
Gap (GPS) – Gap rallied 5.7% in premarket trading after the clothing retailer reported an unexpected quarterly profit. Gap’s results were helped by a jump in sales of dressier clothes at its Banana Republic chain as more people returned to offices.
Dell Technologies (DELL) – Dell fell 5.5% in premarket trading after quarterly revenue fell below analyst estimates, as sales waned following a pandemic-era boom in PC sales. Dell reported better than expected earnings for its latest quarter.
Farfetch (FTCH) – Farfetch surged 14.7% in the premarket after the online luxury retailer reported a smaller than expected quarterly loss and revenue that topped analyst forecasts.
Workday (WDAY) – Workday rallied 10.9% in premarket action after its quarterly profit and revenue topped estimates. Workday also issued an upbeat forecast as more customers adopt its human resources and finance software.
Ulta Beauty (ULTA) – The cosmetics retailer reported better than expected results for its latest quarter and also issued an upbeat outlook, upholding a recent trend among beauty-related companies. Ulta added 3.5% in the premarket.
Micro Focus (MFGP) – Micro Focus nearly doubled in off hours trading, rising 94% following news that the British enterprise software maker will be bought by Canadian software company OpenText (OTEX) in an all cash deal that values the company at $6 billion, including debt. OpenText shares fell 8.5%.
Seagen (SGEN) – Seagen shares slid 8.7% in premarket action following a Bloomberg report that talks for the drug maker to be bought by Merck (MRK) have stalled. People familiar with the matter say the two sides have so far failed to agree on a buyout price.
Everbridge (EVBG) – Everbridge jumped 14.7% in the premarket on a report that the enterprise software company is exploring strategic options including a possible sale. People with knowledge of the matter told Bloomberg the company is working with an adviser.
Market News
Fed’s Jerome Powell Set to Speak on Economic Outlook at Jackson Hole
Federal Reserve Chairman Jerome Powell is set to speak on the outlook for the U.S. economy, inflation and interest-rate policy at the Kansas City Fed’s symposium in Jackson Hole, Wyo., on Friday at 10 a.m. ET.
Investors are looking for clues about how the central bank could manage a series of difficult trade-offs as it seeks to bring inflation down from a 40-year high. It wants to lower inflation while minimizing the risks of a sharp downturn and an increased unemployment rate, which is at a 50-year low.
Musk's SpaceX and T-Mobile Plan to Connect Mobile Phones to Satellites, Boost Cell Coverage
U.S wireless carrier T-Mobile US Inc will use Elon Musk-owned SpaceX's Starlink satellites to provide mobile users with network access in parts of the United States, the companies announced on Thursday, outlining plans to connect users' mobile phones directly to satellites in orbit.
The new plans, which would exist alongside T-mobile's existing cellular services, would cut out the need for cell towers and offer service for sending texts and images where cell coverage does not currently exist, key for emergency situations in remote areas, Musk said at a flashy event on Thursday at his company's south Texas rocket facility.
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