U.S. stock futures slipped Wednesday as investors looked ahead to the widely-anticipated release of Nvidia’s latest earnings report.
Market Snapshot
At 08:24 a.m. ET, Dow Jones Industrial Average futures inched lower by 83 points, or 0.2%. Futures tied to the S&P 500 slipped 0.2%, while Nasdaq 100 futures were little changed. Tesla drops 2% premarket.
Pre-Market Movers
Target — Target’s shares tumbled more than 8% after first-quarter earnings missed estimates, driven by a year-over-year sales decline of about 3% as consumers bought fewer discretionary items.
Analog Devices -- The semiconductor manufacturing company jumped 6.2% after exceeding quarterly estimates. Analog Devices posted adjusted earnings of $1.40 per share in its fiscal second quarter on revenue of $2.16 billion, while analysts polled by FactSet forecast earnings of $1.26 per share, excluding one-time items, on revenue of $2.11 billion.
Shopify — The retail software stock rose 2.6% following a Goldman Sachs upgrade to buy from neutral. The investment bank said the industry leader’s shares are at an attractive entry point following a rough year to date.
Box — The cloud storage company dipped 2.2% after Morgan Stanley downgraded Box to equal weight from overweight, saying other software names such as Docebo and Smartsheet appear more compelling.
Urban Outfitters — The clothing retailer added 1.8% after beating Wall Street estimates for fiscal first-quarter results. Urban Outfitters posted adjusted earnings of 69 cents per share on $1.20 billion of revenue, exceeding analysts’ expectations of 52 cents per share on $1.18 billion of revenue, per LSEG.
PDD — PDD Holdings, the Chinese parent of discount retailer Temu, gained 6% after reporting a 131% increase in first-quarter revenue.
Toll Brothers — The homebuilder gained about 1% after stronger-than-expected results in its fiscal second quarter. Toll reported $4.55 in earnings per share on $2.65 billion of home sales revenue. Analysts surveyed by LSEG were looking for $4.14 per share on $2.53 billion of revenue.
Hims & Hers Health — The digital pharmacy stock slipped roughly 3% after Citi downgraded it to neutral from buy. The bank said that while Hims and Hers is “doing everything above-board,” the stock has captured most of its upside potential from an announcement that it will introduce GLP-1s to its platform.
Lululemon — The athletic apparel retailer shed 3.7% after saying on Tuesday it will implement a new integrated design structure and announced the departure of its chief product officer, the Wall Street Journal reported.
Market News
Target Issues Weak Forecast as Shoppers Pull Back; Shares Tumble
Target on Wednesday said it expects consumer caution to persist after it reported quarterly earnings that missed Wall Street estimates and issued a forecast for the current quarter that was also largely below expectations.
Q1 adj. EPS of $2.03 misses estimates by 3 cents; shares down 8%
Expects Q2 adj. EPS of $1.95 to $2.35 vs est. $2.19
Sees Q2 comp sales of flat to up 2% vs est. 1.39%
Expect consumer discretionary spending to remain pressured
Shares fell 8% premarket after it posted adjusted earnings per share of $2.03, 3 cents below analysts' expectations, according to LSEG data. The stock has lost more than 40% of its value since touching an all-time high in Nov. 2021.
PDD Rises After Q1 Profit Surges 200%, Transaction Services Drive Revenue Growth
PDD's stock rose about 6% premarket on Wednesday after first quarter results beat estimates.
PDD's non-GAAP earnings per American depositary shares, or ADS, surged about 199.4% year-over-year to RMB20.72 ($2.83).
The e-commerce giant's total revenues soared nearly 131% year-over-year to RMB86.81B (about $12.02B). Both top and bottom lines surpassed analysts' estimates.
Non-GAAP net income attributable to ordinary shareholders rose 202% year-on-year to RMB30.61B ($4.23B).
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