U.S. stock index futures edged up on Thursday ahead of labor market data, while investors assessed the Federal Reserve's July meeting minutes that suggested the central bank might pursue a less aggressive monetary policy tightening path.
Market Snapshot
At 07:57 a.m. ET, Dow e-minis were up 38 points, or 0.11%, S&P 500 e-minis were up 6 points, or 0.14%, and Nasdaq 100 e-minis were up 20.25 points, or 0.15%.
Pre-Market Movers
Kohl’s(KSS) – Kohl’s shares slid 7.2% in the premarket after the retailer cut its full-year forecast due to increased promotional activity and higher costs. Kohl’s most recent quarter beat Street forecasts for revenue and profit.
BJ’s Wholesale(BJ) – The warehouse retailer beat estimates by 26 cents with an adjusted quarterly profit of $1.06 per share and revenue also topped forecasts. Comparable store sales increased more than expected, and the stock rallied 5.4% in premarket trading.
Tapestry(TPR) – Tapestry moved between gains and losses in premarket action after its earnings came in above consensus despite sales that were slightly short of forecasts. The company behind luxury brands Coach and Kate Spade also raised its quarterly dividend by 20%.
Estee Lauder(EL) – Estee Lauder shares fell 1.3% in the premarket after the cosmetics maker forecast full-year sales below consensus, due to Covid-related lockdowns in China. Estee Lauder’s profit and revenue for its most recent quarter beat Wall Street estimates.
Canadian Solar(CSIQ) – The solar equipment and services company reported better-than-expected quarterly profit and solar module shipments that were at the high end of its prior forecast. Canadian Solar also raised its full-year revenue forecast, and its stock jumped 6.2% in premarket trading.
Bath & Body Works(BBWI) – Bath & Body Works reported better-than-expected quarterly profit and revenue, but gave a current-quarter forecast that was weaker than expected. The personal care products retailer also said it eliminated 130 positions as it moves to control costs and become more efficient.
Cisco Systems(CSCO) – Cisco rallied 5% in premarket trading after beating top and bottom line estimates for its latest quarter. The networking equipment maker also gave a stronger-than-expected outlook for the current quarter as supply chain issues ease.
Bed Bath & Beyond(BBBY) – Bed Bath & Beyond tumbled 14.4% in the premarket after investor Ryan Cohen filed a notice of intent to sell 7.78 million shares of the housewares retailer. Cohen’s prior purchases of call options had contributed to a buying spree in Bed Bath & Beyond, with the stock up in 15 of the past 16 sessions and increasing more than five-fold in value over that time.
Wolfspeed(WOLF) – Wolfspeed rocketed higher by 20.9% in the premarket after the semiconductor company reported a smaller-than-expected quarterly loss and revenue that beat consensus estimates. It also projected a loss for the current quarter that falls largely below what analysts had been anticipating.
DCP Midstream(DCP) – DCP Midstream added 1.7% in premarket trading after refinerPhillips 66offered to buy the pipeline operator’s publicly held shares for $34.75 per share.
Market News
Kohl's Shares Tumbled 10% as Annual Profit Forecast Cut
Kohl's Corp cut its full-year profit forecast on Thursday, squeezed by steeper discounts and higher costs amid dwindling demand for clothing and shoes in the face of high inflation.
The company said it expects 2022 earnings per share of $2.80 to $3.20, compared with its previous forecast of $6.45 to $6.85. Analysts on average expect a profit of $4.06 per share, according to Refinitiv IBES data.
Amazon Tests TikTok Style In-App Feature
Amazon is testing a feature in its app that would show users a TikTok-style photo and video feed of products for shoppers to share with other users. The test is currently visible to a small number of Amazon employees, according to a person familiar with it.
Amazon joins other major technology companies such as Meta Platforms Inc. and Google parent Alphabet Inc. that have attempted to bump up engagement through short videos and an endless stream of content.
Fed Officials Saw Need to Slow Rate-Hike Pace “At Some Point”
Federal Reserve officials agreed last month on the need to eventually dial back the pace of interest-rate hikes but also wanted to gauge how their monetary tightening was working toward curbing US inflation.
“As the stance of monetary policy tightened further, it likely would become appropriate at some point to slow the pace of policy rate increases while assessing the effects of cumulative policy adjustments on economic activity and inflation,” according to minutes of the Federal Open Market Committee’s July 26-27 meeting released Wednesday in Washington.
Ryan Cohen Reveals Plans to Sell Bed Bath & beyond Shares, Leaving Meme Stock Traders Behind
In a regulatory filing on Tuesday, Cohen's venture capital and activist firm, RC Ventures, said it planned to sell its entire 11.8% stake in Bed, Bath & Beyond within the next 90 days.
An investment firm must give notice about a planned sale when it or its affiliates plan to sell over 5,000 shares, or $50,000 worth of stock, that isn't registered through other filings.
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