U.S. stock futures fell Monday as investors awaited more earnings and an important speech from Federal Reserve Chairman Jerome Powell. Disney, Chipotle, Dupont and PepsiCo are among the major companies reporting earnings this week.
Market Snapshot
At 7:50 a.m. ET, Dow e-minis were down 155 points, or 0.46%, S&P 500 e-minis were down 24.5 points, or 0.59%, and Nasdaq 100 e-minis were down 93.75 points, or 0.74%.
Pre-Market Movers
Faraday Future Intelligent Electric Inc.--Shares surged 30.56% to $1.41 in pre-market trading. It announced the execution of definitive agreements for financing commitments of $135.0 million in convertible secured notes.
Tyson– Shares of the food processing giant suffered a 6% drop in premarket trading after the company reported weaker-than-expected results for the first quarter. Earnings came in at 85 cents per share excluding items on revenues of $13.26 billion. Analysts expected $1.34 per share in earnings and revenue of $13.52 billion, according to Refinitiv.
PayPal — Shares of the payments company fell 2.6% in premarket after Raymond James downgraded the stock to market perform from outperform. The Wall Street firm said the downgrade followed the strong start to the year that saw the stock rise more than 20%. Meanwhile, Raymond James said it holds a cautious stance on its fourth-quarter earnings set for later this week.
Children's Place — The children’s apparel retailer shed more than 16% after management cuts its outlook for the fourth quarter as it deals with a difficult macro environment. Children’s Place also said it expects a loss per share, citing “deterioration in gross margin.”
T-Mobile US — T-Mobile shares dipped more than 2% following a downgrade to market perform by analysts at MoffettNathanson, citing expectations of a slowdown in subscriber growth.
Lyft, Inc. — Shares of the ride-hailing company fell about 2% in premarket trading after Lyft was downgraded to hold from buy at research firm Gordon Haskett. The firm said in a note that Lyft’s active rider metric for the fourth quarter could fall short of expectations.
Dell Technologies Inc. — Shares of the consumer technology stock gained nearly 1% before the bell following news that its cutting about 5% of its workforce as it grapples with a difficult macroenvironment.
Spotify Technology S.A. — Shares rose more than 1% after Wells Fargo upgraded Spotify to overweight from equal weight, saying the audio streaming company is improving margins with an expected price increase ahead. Separately, Atlantic Equities also upgraded the stock to overweight.
Energizer — The battery maker’s stock fell 6% after revenue and earnings for the recent quarter fell short of expectations, according to analysts surveyed by FactSet. Energizer, meanwhile, reaffirmed earnings per share and revenue growth guidance for the full year.
Market News
Apple’s latest iPhones are selling at discounts of more than $100 in China, an unusually steep price cut just months after launch that suggests dwindling demand for even its highest-end devices.
Tesla Motors raised the prices of its Model Y SUV in the U.S.The cost of the Model Y Long Range has increased by $1,500 to $54,990, while the Model Y Performance is up $1,000 to $57,990, according to the company website.
A judge on Friday released a ruling denying the Federal Trade Commission's request to stop Meta Platforms, Inc. from buying virtual reality content maker Within Unlimited, rejecting the regulator's concerns the deal would reduce competition in a new market.
Musk said in a tweet Sunday that the last three months were “extremely tough.” He had to juggle the rescue of Twitter with responsibilities at two other companies he oversees — Tesla Inc. and Space Exploration Technologies Corp., or SpaceX.
Walt Disney is exploring more licensing of its films and television series to rival media outlets as pressure grows to curb the losses in its streaming TV business. The move would represent a shift in strategy, as Disney has in recent years tried to keep much of its original programming exclusively on its Disney+ and Hulu streaming services.
A private lawsuit filed in California on Thursday seeks to stop Kroger's planned $25 billion purchase of rival Albertsons Companies Inc, a deal that state attorneys general, consumer groups and some U.S. lawmakers have questioned as harmful to competition in the grocery market.
Newmont Mining has made an indicative $16.9 billion takeover offer for Australia's No. 1 gold miner Newcrest Mining Ltd., Newcrest said on Monday in a deal that would leverage both miners' operations in Australia and Canada.
Softbank Group Corp is staring at another quarter of bleak results, but for the first time on record, Masayoshi Son is going to miss the earnings call. The founder and chief executive of the world’s largest tech investor bade farewell in November to the earnings presentations he’s led for decades, saying he was going to focus on taking chip designer Arm Ltd. public.
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