U.S. stock index futures edged lower on Wednesday, as investors held back ahead of a crucial quarterly earnings report from AI-favorite Nvidia to gauge if the market can withstand further risk-taking in a bull rally.
Market Snapshot
At 07:50 a.m., Dow E-minis were down 6 points, or 0.01%, S&P 500 E-minis were down 2.5 points, or 0.04% and Nasdaq 100 E-minis were down 17.75 points, or 0.09%.
Pre-Market Movers
Ambarella - Ambarella, the semiconductor design company, reported a second-quarter adjusted loss of 13 cents a share, narrower than analysts’ estimates, as revenue rose 3% to a better-than-estimated $63.7 million. Ambarella said it expects third-quarter revenue of between $77 million and $81 million, higher than Wall Street expectations of $69 million. The stock soared 20%.
Foot Locker - Foot Locker was falling 6.5%. The footwear seller posted a second-quarter loss that was narrower than expected but disappointed investors by maintaining its fiscal-year guidance.
SentinelOne - SentinelOne, the security software provider, reported second-quarter earnings and revenue that topped Wall Street estimates and its revenue guidance for the third quarter met expectations. SentinelOne said it expects third-quarter revenue of $209.5 million, about in line with forecasts. Shares rose 2.2%.
PVH - PVH, the owner of the Tommy Hilfiger and Calvin Klein brands, postedsecond-quarter earningsthat beat expectations on revenue of $2.07 billion, down 6% from a year earlier but in line with analysts’ expectations. The stock was falling 8%, however, after the company said revenue at its international businesses fell 4%, “primarily due to the challenging consumer environment in Asia Pacific, particularly in China and Australia.”
Box - Software company Box reported better-than-expected second-quarter earnings and revenue and raised its fiscal-year revenue forecast. Because of the weakening of the U.S. dollar versus the yen, Box said it expects fiscal 2025 revenue of $1.086 billion to $1.09 billion, up 5% from a year earlier, and up 7% on a constant currency basis. It previously expected revenue of $1.075 billion to $1.08 billion. Box shares were up 7.6%.
nCino - Shares of nCino tumbled 12.2% after the financial-technology company issued a revenue forecast for the third quarter that missed Wall Street estimates. The company said it expects revenue in the period of $136 million to $138 million, compared with analysts’ forecasts of $138.7 million.
Chewy - Chewy's stock rose 3.4% premarket Wednesday, after the online retailer of pet food and products posted better-than-expected earnings for its fiscal second quarter.
Kohl's - Kohl's raised its annual profit forecast on Wednesday, betting on leaner inventories to drive more full-price sales, even as demand for apparel and accessories remains muted. Shares of the U.S. department store operator company were up 2.8% in premarket trade.
Nordstrom - Department-store chain Nordstrom jumped 1.2% after reportingsecond-quarter earningsthat beat analysts’ estimates and slightly raising its full-year guidance. The company said it expects adjusted for the full year of $1.75 to $2.05 a share excluding any share repurchases. The previous range called for earnings to range from $1.65 to $2.05.
Li Auto - Li Auto rose 0.9% after the Chinese electric-vehicle maker reportedsecond-quarter earningsof 1.1 billion yuan, down from 2.29 billion yuan a year earlier. Li Auto reported deliveries in the period of 108,581 units, up 25% from a year earlier but below the first-quarter’s growth of 53%. The auto company said it expects third-quarter deliveries of between 145,000 and 155,000 vehicles.
Junee - Shares of Junee rose 1.7% in premarket trading Wednesday after the company signed a pact with an Nvidia partner in Australia to develop artificial-intelligence products and supercomputing centers, including one that will involve $200 million of investment.
JBDI Holdings - JBDI Holdings surged another 31.4% in premarket trading. The comapny soared 102.4% on Tuesday, following the company's announcement that it had successfully priced its initial public offering (IPO) of approximately 2.3 million ordinary shares at $5 per share.
Virax Biolabs - Virax Biolabs announced that it has entered into a distribution agreement with a supplier of (RT) PCR Mpox virus detection kits to commercialize them in 13 European countries as well as members of the Gulf Cooperation Council including Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. The shares soared 30%.
Market News
After Raising Complaints, Trump Says He'll Participate in Debate with Harris
Former president Donald Trump said Tuesday he will participate in a debate next month against Vice President Kamala Harris, two days after he suggested he could skip it.
“I have reached an agreement with the Radical Left Democrats for a Debate with Comrade Kamala Harris,” Trump said on his Truth Social platform, confirming the debate will be Sept. 10 in Philadelphia.
Trump agreed earlier this month to take part in the ABC News debate, which will be his first debate against Harris since she replaced President Joe Biden as the Democratic presidential nominee. But Trump threw the debate into uncertainty Sunday when he criticized ABC as biased in a social media post and suggested people should “stay tuned” about his participation.
Apple Cuts Jobs in Online Services Group as Priorities Shift
Apple Inc. took the rare step of cutting about 100 jobs in its digital services group, part of a shift in priorities for the critical division, according to people with knowledge of the matter.
The company informed the affected employees, who worked across several different teams in Senior Vice President Eddy Cue’s services group, on Tuesday, said the people, who asked not to be identified because the move isn’t public.
The layoffs included some engineering roles, and the biggest cuts were made to the team responsible for the Apple Books app and Apple Bookstore. There were also layoffs in other services teams, including the one that runs Apple News.
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