U.S. stock index futures rose on Friday as signs of slowing economic growth and falling commodity prices eased expectations over how high the Federal Reserve will raise interest rates to rein in inflation.
Market Snapshot
At 07:58 a.m. ET, Dow e-minis were up 207 points, or 0.67%, S&P 500 e-minis were up 26.25 points, or 0.69%, and Nasdaq 100 e-minis were up 83.5 points, or 0.71%.
Pre-Market Movers
CarMax (KMX) – The automobile retailer beat estimates by 7 cents with quarterly earnings of $1.56 per share, and revenue that also beat analyst forecasts amid what the company called a “challenging” used vehicle market. CarMax fell 0.8% in the premarket.
FedEx (FDX) – FedEx rallied 2.7% in premarket trading after reporting its quarterly adjusted earnings of $6.87 per share beat estimates by 1 cent. Shipment volumes declined but were offset by increased shipping rates and fuel surcharges. FedEx also issued upbeat guidance for fiscal 2023.
Seagen (SGEN) – Seagen shares jumped 3.5% in premarket action after the Wall Street Journal reported thatMerck(MRK) is pushing ahead with a potential deal to acquire the biotech company. The stock had jumped last week after the paper’s initial report that Merck was in talks with Seagen about a possible transaction.
Zendesk (ZEN) – Zendesk soared 52.5% in the premarket on reports that the software company is close to a buyout deal with a group of private equity firms. The Wall Street Journal reported that Hellman & Friedman and Permira are among those involved. The potential buyout comes after Zendesk announced last week that it had ended efforts to sell itself.
BlackBerry (BB) – BlackBerry reported an adjusted quarterly loss of 5 cents per share, matching analyst forecasts, while the software company’s revenue beat estimates. BlackBerry’s results were helped by growth in cybersecurity and auto products. Its stock rose 1% in the premarket.
Microsoft (MSFT) – Microsoft gained 1% in the premarket after Citi named it a “top pick,” pointing to its attractive valuation and the company’s ability to sustain growth.
Bausch Health (BHC) – Bausch Health announced that Chairman Joseph Papa has stepped down from the board and it was not due to any dispute or disagreement with the health care products maker. Investor John Paulson will become chairman. Bausch Health jumped 3.6% in premarket trading.
LendingTree (TREE) – LendingTree slumped 6% in premarket trading after the online lender cut its current quarter guidance. LendingTree pointed to recession fears, higher interest rates and inflationary factors for the revision.
Wolfspeed (WOLF) – The semiconductor developer was upgraded to “buy” from “neutral” at Goldman Sachs, which said the stock’s risk-reward profile is now much more attractive given a recent pullback and that a significant upward earnings inflection is ahead. Wolfspeed rallied 4.1% in premarket trading.
Market News
U.S. Senate Passes Bipartisan Gun Bill
The US Senate voted 65-33 to approve bipartisan gun-safety legislation that is hailed as the biggest breakthrough on the issue in three decades.
The vote came the same day the Supreme Court struck down a New York law that required people to show a special need to carry a handgun in public, ruling for the first time that the Second Amendment protects gun rights outside the home.
EU Leaders Brace for Tough Winter as Russia Tightens Gas Grip
European Union leaders are preparing for a further reduction in gas supplies from Russia, seeking ways to cushion the effects of the unprecedented crisis, as well as a surge in energy prices, on the region’s economy.
The impact of Russia’s invasion of Ukraine and its use of energy as a weapon forced its way into a meeting of EU leaders on Friday, after cuts in shipments from Moscow affected 12 member states and pushed Germany to raise its gas-risk level to the second-highest “alarm” phase.
Twitter Agrees to Give Musk More Information
Even after receiving a "firehose" of data from the company, Musk still wasn't satisfied: Insider has learned his lawyers sent another letter to Twitter last week, claiming what had been shared was insufficient.
In response, Twitter this week agreed to give Musk even more information, this time including real-time API data, according to a person familiar with the situation.
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