U.S. stock futures mixed Tuesday as worries over global economic growth dented investor appetite for risk assets. Wall Street also looked ahead to the start of what could be a difficult earnings season.
Market Snapshot
At 7:50 a.m. ET, Dow e-minis were down 191 points, or 0.61%, S&P 500 e-minis were down 14.25 points, or 0.37%, and Nasdaq 100 e-minis were up 12.25 points, or 0.1%.
Pre-Market Movers
Pepsi – The beverage and snack giant reported an adjusted quarterly profit of $1.86 per share, 12 cents above estimates, and revenue topped Wall Street forecasts. The company also raised its full-year forecast as consumer demand holds up even as prices rise. PepsiCo gained 1.2% in the premarket.
Gap – The apparel retailer’s stock slumped 6.3% in the premarket after CEO Sonia Syngal stepped down after two years on the job. She’ll be replaced on an interim basis by executive chairman and former Walmart executive Bob Martin.
Peloton Interactive, Inc. – The fitness equipment maker announced it will fully transition to third-party manufacturing, expanding its partnership with Taiwan-based manufacturer Rexon Industrial. Peloton fell 1.8% in premarket trading before erasing those losses and going positive.
Twitter – Twitter sent a letter to Elon Musk saying it did not breach any of its obligations under their takeover agreement and that his effort to back out of the deal was “invalid and wrongful.” Twitter shares have fallen 15.8% over the past 2 trading days.
Dave & Buster's Entertainment – The entertainment-themed restaurant chain announced a series of new executive appointments, including the appointment of a new chief operating officer. The changes take effect August 1, and the stock gained 1.7% in the premarket.
Pricesmart – The discount retailer’s shares slid 4.2% in premarket trading after it reported lower-than-expected earnings despite sales that exceeded analyst estimates. PriceSmart was impacted by supply chain disruptions and excess inventory levels prompted by shifts in consumer demand.
Canoo Inc. – The electric vehicle maker’s stock soared 73.4% in the premarket after it struck a deal to sell 4,500 delivery vehicles to Walmart(WMT) for an undisclosed amount. Walmart also has an option to purchase up to 10,000 units.
Lennar – The home builder’s shares fell 1.7% in premarket trading after J.P. Morgan Securities downgraded the stock to “neutral” from “overweight” as the industry faces a number of headwinds, including softening sales and higher incentives.
American Express – American Express shares fell 2.6% in premarket action after Morgan Stanley downgraded the financial services giant to “equal-weight” from “overweight.” The firm said the risk of recession is not fully priced into American Express’ stock.
Market News
Microsoft cut some jobs on Monday as it realigned business groups and roles after the close of its fiscal year on June 30. It said it plans to keep hiring for other roles and finish the current fiscal year with an increased headcount.
Alphabet has sued Match Group Inc., accusing the dating-app service of bad faith dealings and breach of contract in provoking a legal battle over Google Play policies.
Alibaba's supermarket chain Freshippo is seeking to raise funds at a valuation of about $6 billion, much lower than a hoped-for valuation of up to $10 billion earlier this year. The supermarket chain, known as Hema in Chinese, is aiming to raise $400 million to $500 million from outside investors.
Netflix is searching for an executive to lead the creation of an ad-supported tier of its service, the candidates include Pooja Midha, chief growth officer of Comcast Corp.’s advertising unit, who has interviewed with Netflix extensively in recent weeks, and Peter Naylor, Snap Inc.’s vice president of sales for the Americas and a former Hulu executive.
Rivian Automotive, Inc. is planning hundreds of layoffs to trim its workforce in areas where the electric-vehicle maker has grown too quickly. The cuts will focus on nonmanufacturing roles, including teams with duplicate functions. The actions could be announced in the coming weeks.
William Ackman, who had raised $4 billion in the biggest-ever special purpose acquisition company (SPAC), told investors he would be returning the sum after failing to find a suitable target company to take public through a merger.
The global price of oil could surge by 40% to around $140 per barrel if a proposed price cap on Russian oil is not adopted, along with sanction exemptions that would allow shipments below that price, a senior U.S. Treasury official said on Tuesday.
Warner Bros. Discovery has been in talks with Amazon.com Inc. about restarting a distribution agreement for the online retailer to sell Warner’s HBO Max along with its Prime Video service. A deal to resell the HBO Max streaming service could come this year.
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