U.S. stock index futures notched cautious gains on Wednesday, ahead of Federal Reserve Chair Jerome Powell's testimony for clues on interest rates as the Ukraine crisis exacerbates concerns about inflation and growth.
The mood remained dour across global stock markets as Brent crude jumped to near eight-year highs and metal prices rallied after Western sanctions disrupted transport of commodities exported by Russia.
U.S. private job creation rose at a faster-than-expected clip in February, according to a count released Wednesday from payrolls processing firm ADP.
Companies added 475,000 positions for the month, better than the Dow Jones estimate for 400,000.
ADP also dramatically revised its January count, from an initially reported loss of 301,000 to a gain of 509,000. That brought the tally more closely in line with the Labor Department count for the month of a 467,000 gain.
Market Snapshot
At 08:23 a.m. ET, Dow e-minis were up 149 points, or 0.45%, S&P 500 e-minis were up 15.25 points, or 0.35%, and Nasdaq 100 e-minis were up 37.5 points, or 0.27%.
Pre-Market Movers
Nordstrom — The retail stock spiked 30.5% in premarket trading after the company posted better-than-expected fourth-quarter results.Nordstrom reported earnings of $1.23 per share versus the Refinitiv consensus estimate of $1.02 expected. Revenue also topped expectations. The retailer highlighted improvements in its off-price business, Nordstrom Rack.
Salesforce — Salesforce shares rose 4% in the premarket after the software company's fourth-quarter report beat Wall Street expectations and issued upbeat guidance. The company posted adjusted earnings of 84 cents per share on revenue of $7.33 billion. Analysts expected a profit of 74 cents per share on revenue of $7.24 billion, according to Refinitiv.
Ford — Ford shares added 4% in premarket trading after the automaker announced it will split its electric vehicle and legacy businesses into separate units. The company expects the move will streamline its growing electric vehicle business and maximize profits.
SoFi — Shares of the digital financial services company surged 15.5% premarket after SoFi's quarterly report. SoFi posted a loss of 15 cents per share on revenue of $279.9 million versus the Refinitiv consensus estimate of a 17-cents loss per share on revenue of $279.3 million.
Ross Stores — Ross Stores added 6.3% in premarket trading after an earnings beat. The retailer reported fourth-quarter earnings of $1.04 per share on revenue of $5.02 billion. Analysts expected a profit of 87 cents per share on revenue of $4.96 billion.
Hewlett Packard Enterprise — Shares of Hewlett Packard added 5.5% premarket after the company reported a slight earnings beat for the most recent quarter, but a quarterly revenue miss. Earnings of 53 cents per share for the quarter beat analysts’ estimates by 7 cents. Revenue of $6.96 billion was below the consensus estimate of $7.03 billion.
Abercrombie & Fitch — Shares of Abercrombie & Fitch fell 8.1% premarket after the retailer missed top and bottom-line estimates. The company posted adjusted earnings of $1.14 per share on revenue of $1.16 billion. Analysts expected a profit of $1.27 per share on revenue of $1.18 billion, according to StreetAccount.
First Solar — Shares of First Solar sunk 12.4% premarket after the company missed revenue expectations for the fourth quarter. The solar-panel manufacturer also issued weak full-year guidance.
Dollar Tree — Shares of Dollar Tree were 1% higher premarket after a better-than-expected fourth-quarter report. The company posted earnings of $2.01 per share versus the StreetAccount consensus estimate of $1.78 per share. Revenue slightly missed analyst estimates.
DraftKings — DraftKings shares rose 2.3% before the bell after Morgan Stanley named the sports betting stock a top pick. “We expect the US online sports betting/iGaming market to be very large, with a few market share winners, including DKNG,” Morgan Stanley said.
Market News
Powell will testify at 10 a.m. ET (1500 GMT) before the U.S. House of Representatives Financial Services Committee and his comments on the economy in nearly five weeks will confront a situation that has become markedly more complex since January.
The U.S. government will ban Russian aircraft from American airspace, broadening aviation restrictions as the West expands sanctions over the war in Ukraine, President Joe Biden said Tuesday during his State of the Union address.
Apple, Exxon, Ford Motor and computer maker Dell joined the ranks of companies having to adjust or reassess their business activities because of Russia’s invasion of Ukraine.
Netflix today announced that it has entered into a combination agreement to acquire Next Games. Under the terms of the agreement, Netflix will commence a tender offer to acquire all of the issued and outstanding shares of Next Games. Pursuant to the offer, Next Games shareholders will receive €2.1 in cash per share of Next Games, for a total equity value of approximately €65 million. The Board of Directors of Next Games has unanimously decided to recommend that the shareholders accept the tender offer.
Ford Motor Co said on Wednesday its electric vehicle (EV) and internal-combustion engine (ICE) units would be run as separate entities, in a move aimed at supercharging its EV business as it plays catch up with Tesla Inc.
U.S. electric vehicle startup Rivian Automotive Inc said on Tuesday it has increased selling prices of its vehicles by about 20per cent due to inflationary pressures and higher component costs, angering some customers.
The price increase also invited caustic comments from Elon Musk, chief executive of rival Tesla Inc, who tweeted that Rivian's "negative gross margin will be staggering" and it is "near impossible" for other firms to make affordable electric pickup trucks.
Comments