U.S. stock index futures came under pressure on Tuesday after the Bank of Japan surprised global investors with a policy shift that would allow long-term interest rates to rise more.
The BOJ decided to allow the 10-year bond yield to move 50 basis points either side of its 0% target, bigger than the previous 25 basis point band, against expectations of no change at its policy meeting.
Market Snapshot
At 7:54 a.m. ET, Dow e-minis were up 5 points, or 0.02%, S&P 500 e-minis were down 6.75 points, or 0.18%, and Nasdaq 100 e-minis were down 51.75 points, or 0.46%.
Pre-Market Movers
Lucid (LCID) – Lucid rallied 5.4% in premarket trading after the electric vehicle maker raised more than $1.5 billion in a series of stock sales.
General Mills (GIS) – General Mills reported better-than-expected profit and revenue for its latest quarter, and it raised its full-year forecast. The food producer was helped by higher prices which were only partially offset by increased input costs. The stock slid 1.7% in premarket action.
FuelCell Energy (FCEL) – FuelCell Energy reported quarterly sales of $39.20 million which missed the analyst consensus estimate of $43.81 million by 10.52 percent. FuelCell Energy reported quarterly losses of $(0.11) per share which missed the analyst consensus estimate of $(0.07) by 57.14 percent. The shares dropped 10% in premarket trading.
Verona Pharma (VRNA) – Verona Pharma shares soared 40% in premarket trading after the company announced Ensifentrine met Primary and key secondary Endpoints in Phase 3 ENHANCE-1 Trial for COPD.
Steelcase (SCS) – Steelcase gained 3% in the premarket after the office furniture maker reported better-than-expected quarterly earnings and issued an upbeat profit forecast. Steelcase’s quarterly revenue fell short of Wall Street forecasts as did its revenue forecast, however, but its backlog of orders is 3% higher than it was a year ago.
Rocket Lab (RKLB) – Rocket Lab fell 1% in premarket action after announcing a delay in its first rocket launch from the United States. Rocket Lab cited both poor weather conditions as well as regulatory delays stemming from the processing of documentation by NASA and the Federal Aviation Administration. As a result, Rocket Lab cut its revenue forecast for the fourth quarter.
The Trade Desk (TTD) – The Trade Desk rose 1.6% in premarket trading after the digital advertising firm’s stock was rated “overweight” in new coverage at Piper Sandler.
Generac (GNRC) – The power equipment maker’s stock slid 1.5% in the premarket after Baird downgraded it to “neutral” from “outperform,” saying Generac’s end markets have not yet reached a bottom and inventory levels are still in the process of returning to normal.
Stitch Fix (SFIX) – The stock was downgraded to “neutral” from “underweight” at J.P. Morgan Securities, even after an 82% year-to-date decline. The firm says the online clothing styler is struggling with its transition to “Fix + Freestyle” business model. Stitch Fix shares lost 1.6% in premarket trading.
Beam Therapeutics (BEAM) – The biotech company’s shares rose 2.9% in the premarket after Beam was upgraded to “outperform” from “market perform” at BMO Capital. BMO expects positive announcements from Beam’s partnerVerve Therapeutics(VERV) to help drive the stock higher.
Market News
BOJ Jolts Markets in Surprise Change to Yield Curve Policy
The Bank of Japan shocked markets on Tuesday with a surprise tweak to its bond yield control that allows long-term interest rates to rise more, a move aimed at easing some of the costs of prolonged monetary stimulus.
Shares tanked, while the yen and bond yields spiked following the decision, which caught off-guard investors who had expected the BOJ to make no changes to its yield curve control (YCC) until Governor Haruhiko Kuroda steps down in April.
Musk Narrows Voting on Twitter Policy to Blue Members After Poll
Twitter Inc. will restrict voting on major policy decisions to paying Twitter Blue subscribers, company owner Elon Musk said in one of his first tweets following a poll calling for him to step down.
Responding to a Blue member going by the name Unfiltered Boss, Musk agreed with the suggestion that only subscribers should have a voice in future policy and said, “Twitter will make that change.” A day earlier, the billionaire chief pledged to submit all future policy decisions to a vote and offered Twitter users a choice on leadership, asking them if he should step down.
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