U.S. stock index futures slipped on Tuesday following disappointing quarterly updates from companies including Pfizer and Coty, while investors looked ahead to inflation data later this week for clues on the path of interest rates. Facebook-owner Meta Platforms shares were down another 2% in premarket trading after billionaire investor Peter Thiel decided to step down from the company's board.
Market Snapshot
At 7:50 a.m. ET, Dow E-minis were flatted, S&P 500 E-minis were down 9.25 points, or 0.21% and Nasdaq 100 E-minis were down 57.75 points, or 0.40%.
Peloton – Peloton CEO John Foleywill be stepping down. The fitness equipment maker will also slash about 2,800 jobs or about 20% of its corporate staff and also cut $800 million in annual costs. Foley’s replacement will be former Spotify and Netflix CFO Barry McCarthy. Peloton tumbled 8.4% in premarket trading.
Novavax – Novavax sank 6.7% in the premarket after Reuters reported that the drugmaker has delivered only a small fraction of the 2 billion Covid-19 vaccine doses it had planned to send around the world.
Pfizer – Pfizer shares fell 3.8% in the premarket afterreporting a revenue missfor its latest quarter and issuing a weaker-than-expected full-year forecast. Pfizer reported better-than-expected earnings for the fourth quarter, however, and also raised its full-year forecast for sales of its Covid-19 vaccine.
Harley-Davidson – Harley shares surged 8.3% after the motorcycle maker reported an unexpected profit for its latest quarter as well as better-than-expected revenue. Harley earned 14 cents per share, compared to forecasts of a 38 cents per share loss, as demand jumped for its more expensive motorcycles.
Chegg – Chegg rallied 5.8% in the premarket after the online education services company reported better-than-expected profit and revenue for its latest quarter. Chegg beat estimates by 4 cents a share, with quarterly profit of 38 cents per share. The company also issued a better-than-expected outlook.
Carrier Global – The maker of heating and cooling equipment beat estimates by 5 cents a share, with quarterly earnings of 44 cents per share. Revenue also topped Wall Street forecasts. Carrier stock added 1.3% in the premarket.
Take-Two Interactive – The video game maker’s stock fell 2.1% in premarket trading after it issued a weaker-than-expected outlook. Take-Two also missed estimates for “net bookings” for its most recent quarter, representing sales of products and services digitally and in stores.
Nvidia – Nvidia will not go ahead with its $66 billion purchase of Softbank’s chip designer Arm. The two companies said the deal – which would have been the largest chip industry deal ever –faced “significant regulatory challenges.”Softbank said it would now plan to take Arm public. Nvidia fell 2% in premarket action.
Velodyne Lidar – Velodyne Lidar shares rocketed 38.5% in the premarket after the maker of sensors for autonomous driving said it would issue a warrant for anAmazon.com(AMZN) subsidiary to buy about 37 million shares.
Just Eat Takeaway – Just Eat Takeaway will be delisting from the Nasdaq, with the Grubhub parent citing low Nasdaq trading volumes and a low proportion of the company’s share value held on Nasdaq. The meal delivery service’s stock will continue to trade on the Amsterdam and London stock exchanges. The stock fell 3.2% in premarket trading.
Guess – Activist investor Legion Partners Asset Management is calling for the removal of Guess co-founders Paul and Maurice Marciano from the apparel maker’s board, according to a letter seen by The Wall Street Journal. The firm argues that sexual misconduct allegations against Paul Marciano are threatening the company’s turnaround efforts. Guess gained 1.4% in the premarket.
Market News
SoftBank Group Corp. said it planned an initial public offering for Arm Ltd. after Nvidia Corp. abandoned a proposed acquisition of the chip designer in the face of fierce opposition from regulators and customers.
Amazon received a warrant to purchase up to 39.6M of Velodyne Lidar 's shares. The warrant may be any time before Feb. 4, 2030 at an exercise price of $4.18 per share.
Peloton Interactive Inc. plans to replace its chief executive, cut costs and overhaul its board after a slowdown in demand caused the once-hot bike maker’s value to plummet.
Cathie Wood’s flagship ARK Innovation ETF dumped 3.66 million shares of Twitter on Monday, while the ARK Next Generation Internet ETF sold more than 280,000 shares. That amounted to about $142 million based on Monday’s closing level.
California-based rocket startup Astra Space Inc aborted the planned liftoff of its first operational satellite launch, a NASA mission, on Monday.
Novavax Inc said on Monday U.S. government funding for its COVID-19 vaccine had been expanded to cover a late-stage study in adolescents with a booster component.
Oil giant BP reported on Tuesday a profit of $12.8 billion in 2021, the highest in eight years, as natural gas and oil prices soared and the global economy recovered from the pandemic slump.
Meal-delivery firm Just Eat Takeaway on Tuesday said it would delist its shares from the Nasdaq stock exchange in a bid to limit costs and regulatory burdens.
FedEx Corp is in talks with Boeing and Airbus to buy next-generation freighters as e-commerce soars, but the delivery giant has postponed a buying decision amid ongoing labor talks with pilots.
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