U.S. stock index futures were subdued on Tuesday as investors refrained from placing large bets ahead of commentary from Federal Reserve Chair Jerome Powell after two other policymakers fanned concerns about the rate hike trajectory.
Powell is set to speak at a panel discussion at 9 am ET. His speech could provide clarity on the outlook for interest rates.
Market Snapshot
At 7:50 a.m. ET, Dow e-minis were down 170 points, or 0.5%, S&P 500 e-minis were down 20.75 points, or 0.53%, and Nasdaq 100 e-minis were down 81.25 points, or 0.73%.
Pre-Market Movers
Oak Street Health– Shares of Oak Street Health surged 36% after a Bloomberg report that CVS is exploring options to buy the health care company for more than $10 billion. CVS stock ticked down about 0.5% on the news.
Frontline–The shipping stock surged more than 24% in premarket trading after Frontline announced that it was terminating its combination with Euronav. Frontline CEO Lars Barstad said that both companies “are already enjoying economies of scale.”
CureVac– CureVac shares jumped 19% after the company said it plans further patient trials of its mRNA vaccines for Covid-19 and the flu. The company also announced that Sanofi veteran Alexander Zehnder will become CEO in April.
Boeing— The aerospace giant fell more than 2% after Morgan Stanley downgraded Boeing to equal weight from overweight, citing a lack of potential upside from current levels. “We see a balanced risk reward as the majority of the near- and medium-term positive catalysts for the stock have been realized,” Morgan Stanley said in a note.
Norwegian Cruise Line– Shares dropped 3.3% after adowngrade to underweight from equal weight by Morgan Stanley,which cited concerns over how overcapacity could hurt pricing power. Meanwhile, the firm upgraded competitor Royal Carribean, which added 0.3% in the premarket, to equal weight from underweight.
Coinbase– Coinbase shares last traded flat after rising slightly premarket on newsthat it plans to cut 20% of its workforce. The move marks the second major round of cuts as the company looks to trim costs after hitting expansion mode during the bull market.
Sotera Health– Shares soared more than 58% in the premarket after the company announced its subsidiaries came to agreements to settle more than 870 cases relating to the exposure of ethylene oxide, a carcinogen, from its Willowbrook facilities. Sotera agreed to pay $408 million and said the settlement is not an admission that the emissions posed a safety hazard.
Bumble— Bumble popped more than 2% after KeyBanc upgraded the dating app stock to overweight from sector weight, noting: “The competitive environment appears stable, and economic pressures are easing.”
Market News
Bed Bath & Beyond reports bigger quarterly loss as bankruptcy threat looms
Bed Bath & Beyond Inc(BBBY.O)on Tuesday reported a quarterly loss of about $393 million after a tough holiday season that it hoped would provide a financial cushion to its months-long cash burn.
The company did not say if it would file for bankruptcy, after it said last week it was seeking outside advisers to look at various options after years of weakening sales.
Crypto Exchange Coinbase to Slash Nearly 1,000 Jobs
Cryptocurrency exchange Coinbase Global Inc(COIN.O)said on Tuesday it will reduce its workforce by about 950 employees as part of a restructuring plan.
A clutch of crypto firms, gripped by an industry-wide downturn that has deepened with the collapse of major exchange FTX, have filed for bankruptcy protection in recent months.
Alibaba Signs Strategic Cooperation Agreement With China's Hangzhou
Chinese e-commerce giant Alibaba Group Holding Ltd (9988.HK) has signed a cooperation agreement with the government of Hangzhou, the city where the company is headquartered, local media reported on Tuesday.
China's internet giants have been in the crosshairs of Chinese regulators for the past two years, but authorities have in recent months given increasing signs that relations between the government and China's tech sector will thaw, which would bode well for the sector's prospects.
TSMC Says Dec Sales At T$192.56B, an Increase of 23.9% YoY
TSMC today announced its net revenue for December 2022: On a consolidated basis, revenue for December 2022 was approximately NT$192.56 billion, a decrease of 13.5 percent from November 2022 and an increase of 23.9 percent from December 2021.
Revenue for January through December 2022 totaled NT$2,263.89 billion, an increase of 42.6 percent compared to the same period in 2021.
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