U.S. equity futures slipped Tuesday as a risk-off mood swept through markets amid fears central bank tightening will sap growth.
Market Snapshot
At 7:50 a.m. ET, Dow e-minis were down 218 points, or 0.66%, S&P 500 e-minis were down 32.5 points, or 0.79%, and Nasdaq 100 e-minis were down 133.25 points, or 1.06%.
Target – Target announced a series of moves to “right-size” its inventory levels, including additional markdowns and canceling orders. It cut its operating margin guidance for the current quarter to 2% from the prior 5.3% but said the margin would recover to about 6% in the back half of the year. Target slumped 7.9% in the premarket.
J.M. Smucker – The food producer’s shares slid 3.5% in premarket trading despite better-than-expected quarterly results. Smucker said inflation, supply chain issues and other factors continue to impact results and increase uncertainty. It also said full-year profit would be negatively impacted by a recall of its Jif peanut butter product.
Kohl’s – Kohl’s surged 11.2% in premarket trading after saying it was in advanced takeover talks with retail holding company Franchise Group (FRG), the parent of Vitamin Shoppe and other retail brands. The deal could value Kohl’s at about $8 billion. Franchise Group added 2.7%.
United Natural Foods – The food distributor’s shares jumped 5.8% in the premarket after it reported better-than-expected quarterly profit and revenue. United Natural sales were boosted by increased business from new and existing customers as well as inflation, and it raised its full-year forecast.
G-III Apparel – The apparel and accessories company earned 72 cents per share for its latest quarter, 14 cents a share above estimates. Revenue came in well above Street forecasts. G-III also issued an upbeat outlook and its shares rose 2.3% in premarket action.
BuzzFeed – BuzzFeed rebounded 4.9% in the premarket, not nearly enough to make up for Monday’s 41% slide. The plunge in the digital media company’s stock came following the expiration of BuzzFeed’s post-IPO lockup period.
GitLab – Gitlab rallied 9.3% in premarket action after the software platform developer reported better-than-expected quarterly results and raised its earnings outlook.
Peloton – Peloton announced the departure of Chief Financial Officer Jill Woodworth after four years with the fitness equipment maker. She’ll be replaced by former Amazon and Netflix executive Liz Coddington, effective June 13. Peloton added 1.6% in the premarket.
Novavax – A Food and Drug Administration panel will convene today to consider the drugmaker’s approval application for its Covid-19 vaccine. Novavax shares rose 3.8% in premarket action.
Affirm Holdings – The fintech company’s stock fell 2.8% in the premarket following yesterday’s 5.5% drop. The decline came in the wake of Apple’s (AAPL) announcement that it would add “buy-now-pay-later” options to its Apple Pay service. Block (SQ), the payments company formerly known as Square, lost 3%.
Market News
Novavax COVID vaccine heads to U.S. FDA advisory committee
Advisers to the U.S. Food and Drug Administration on Tuesday will consider whether to recommend Novavax Inc's COVID-19 vaccine for adults, which the drugmaker hopes can become the shot of choice among some American vaccine skeptics.
Novavax's shot is a more traditional type of vaccine employing technology that has been used for decades to combat diseases including Hepatitis B and influenza.
The company is hoping to gain a foothold within the less than one-quarter of U.S. adults who have yet to be vaccinated, particularly those who do not want to receive a vaccine like the Pfizer/BioNTech or Moderna Inc shots based on groundbreaking messenger RNA (mRNA) technology.
Peloton Brings in Amazon and Netflix Veteran Liz Coddington as CFO
Peloton Interactive Inc. is exchanging its top finance executive about four months after it named a new chief executive, a move that comes as the fitness-equipment maker navigates persistent losses.
The New York-based at-home exercise equipment company on Monday said Liz Coddington will serve as its chief financial officer, effective June 13. Peloton said its current CFO, Jill Woodworth, decided to leave after more than four years with the company.
Cathie Wood Scoops Up Nvidia For 3rd Time And Laps Up Another $5M In Tesla
Cathie Wood-led Ark Investment Management on Monday sold shares in Chinese electric vehicle maker BYD Co BYDDY for the first time in nine months and scooped up more shares in Elon Musk-led Tesla Inc TSLA.
St. Petersburg, Florida-based Ark Invest sold 80,725 shares, estimated to be worth $6.17 million on their last closing price, in Shenzhen-headquartered BYD.
EU Countries, Lawmakers Clinch Deal on Single Mobile Charging Port
Apple will have to change the connector on its iPhones sold in Europe by 2024 as EU countries and EU lawmakers on Tuesday agreed to a single mobile charging port for mobile phones, tablets and cameras.
The agreement is a world first and came after companies failed to agree on a common solution. The European Commission had pushed for a single mobile charging port more than a decade ago.
Users if iPhones and Android phones have long complained about having to use different chargers for their devices. The former is charged from a Lightning cable while Android-based devices are powered using USB-C connectors.