US stock futures were rising Friday after the Dow Jones Industrial Average set another all-time closing high and the yield on the 10-year Treasury note closed below 4% for the first time since July after the Federal Reserve signaled that it could cut interest rates three times next year.
These stocks were poised to make moves Friday:
Costco Wholesale reported fiscal first-quarter earnings that beat analysts’ estimates and declared a special cash dividend of $15 a share, with the aggregate amount of the payment worth about $6.7 billion. Revenue in the quarter rose 6.1% to $57.8 billion and same-store sales were up 3.8%. Sales got a boost from sales of food and sundries, the company said. Shares of the warehouse retailer were up 1.9%.
Sunrun was up 2.5% to $18.39 after Jefferies initiated coverage on shares of the residential solar panel company with a Buy recommendation and price target of $25. In times of “uncertainty we see better risk/reward for companies with exposure to utility-scale, strong backlog and balance sheets,” the analysts said in a research note. Sunrun stock jumped 20% on Thursday along with other solar stocks as the prospect of lower interest rates energized the sector. First Solar, up 1.7% in premarket trading, and Enphase Energy —which jumped 12% on Thursday and gained 2.1% in premarket trading—also were initiated at Jefferies with Buy ratings.
Rocket Lab USA today successfully launched its 42nd Electron rocket and deployed a satellite for Japan-based Earth imaging company the Institute for Q-shu Pioneers of Space, Inc. (iQPS). The mission was Rocket Lab’s 10th Electron launch for the year, surpassing the Company’s previous annual record of nine launches in 2022. For the fifth year in a row, Electron has retained the title of second most frequently launched U.S. rocket annually. Rocket Lab shares jumped 9.3% in premarket trading.
Fiscal fourth-quarter adjusted earnings at Lennar were better than expected and the home builder said it received 17,366 new orders in the fourth quarter and delivered 23,795 homes. The company, however, reported a gross margin on home sales of 24.2%, lower than the 24.6% expected by analysts. The stock declined 2.8%.
China edtech firm Gaotu surged 15.7% in premarket trading after soaring 30% on Thursday. The rally came at a cost of East Buy Holding Ltd., a subsidiary of New Oriental Education & Technology Group Inc., another education firm that ventured into livestream e-commerce to mitigate against Beijing’s crackdown. A drop in subscribers pushed East Buy’s Hong Kong-traded shares to a 17% decline for the week so far.
Darden Restaurants, the owner of Olive Garden and LongHorn Steakhouse, is scheduled to report fiscal second-quarter earnings on Friday.
Revenue at Scholastic declined 4% in the company’s fiscal second quarter ended Nov. 30, the important back-to-school period for the educational publisher. Scholastic also reduced its fiscal-year earnings guidance. The stock fell 12% in after-hours trading Thursday.
Quanex Building Products reported fiscal fourth-quarter sales of $295.5 million, down 3.9% from a year earlier. Quanex said it was entering fiscal 2024 with a “somewhat cautious outlook for the first half due to the ongoing macroeconomic challenges combined with typical seasonality” in its business, but was ”optimistic that demand for our products will improve in the second half as consumer confidence is restored over time.” The company didn’t provide guidance but said it intends to re-visit guidance for the fiscal year when it reports first-quarter earnings.
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