U.S. stock index futures edged lower on Thursday following mixed economic data this week, while chip designer Nvidia rose after reporting better-than-expected quarterly revenue.
Market Snapshot
At 07:56 a.m. ET, Dow e-minis were down 248 points, or 0.74%, S&P 500 e-minis were down 33.5 points, or 0.84%, and Nasdaq 100 e-minis were down 102.25 points, or 0.87%.
Pre-Market Movers
Macy’s(M) – Macy’s stock leaped 9.6% in the premarket after the retailer reported better-than-expected profit and revenue. Same-store sales fell less than expected and the company also raised its earnings outlook.
BJ’s Wholesale(BJ) – BJ’s added 2.4% in premarket trading after beating analyst forecasts on both the top and bottom lines for its latest quarter. The warehouse retailer also reported better-than-expected comparable store sales and raised its full-year forecast.
Kohl’s(KSS) – Kohl’s slid 3.8% in premarket action after it withdrew its financial forecast, citing various uncertainties including macroeconomic conditions and the departure of CEO Michelle Gass.
Alibaba(BABA) – The China-based e-commerce giant reported better-than-expected earnings but revenue fell short of analyst forecasts. The company also increased its share buyback program. Alibaba fell 1.8% in the premarket.
Nvidia(NVDA) – Nvidia rose 1.2% in the premarket following better-than-expected revenue for the third quarter and a number of analysts predicting a rebound in the spring of 2023. The company also missed bottom-line estimates for its latest quarter and issued a tepid sales forecast as demand for its video gaming chips wanes.
Cisco Systems(CSCO) – Cisco rallied 4.5% in off-hours trading after the networking equipment and software company reported better-than-expected quarterly results and issued an upbeat forecast. Cisco also said it would implement a “limited business restructuring.”
Bath & Body Works(BBWI) – Bath & Body Works shares surged 21.9% in the premarket after the personal goods retailer raised its full-year earnings forecast. CEO Sarah Nash said the company is pleased with its holiday season product assortment and it is focused on inventory and expense management.
Sonos(SONO) – Sonos jumped 3.3% in premarket action after the high-end speaker maker’s sales for the latest quarter exceeded analyst forecasts. Sonos also said supply chain issues have eased and it has sufficient inventory for the holiday shopping season.
Norwegian Cruise Line(NCLH) – The cruise line operator’s stock slid 5% in premarket trading after a double-downgrade from Credit Suisse to underperform from outperform, with the firm citing a number of factors including valuation.
Market News
Alibaba Quarterly Revenue Misses Expectations As Spending Slows
Alibaba Group Holding Ltd posted a smaller-than-expected rise in quarterly revenue on Thursday as COVID-19 curbs and a worsening economic outlook stifled consumer spending.
Revenue grew 3% to 207.18 billion yuan ($28.96 billion) in the three months ended Sept. 30, compared with a Refinitiv consensus estimate of 208.62 billion yuan drawn from 25 analysts.
Macy's Q3 Sales $5.23B Beat $5.20B Estimate
Macy's reported quarterly earnings of $0.52 per share which beat the analyst consensus estimate of $0.19 by 173.68 percent.
The company reported quarterly sales of $5.23 billion which beat the analyst consensus estimate of $5.20 billion by 0.58 percent.
Kohl’s Pulls Full-Year Outlook, Citing Retail Volatility and Economic Headwinds
Kohl’son Thursday withdrew its full-year outlook, pointing to volatility in the retail environment and significant macroeconomic headwinds, on top of its “unexpected CEO transition.”
Earlier this month, Kohl’s said Chief Executive Michelle Gasswould leave in December. She will join Levi Strauss to be its CEO in waiting.
NetEase, Blizzard to End Deal That Brought Warcraft to China
NetEase Inc. and Blizzard Entertainment Inc. plan to end their 14-year partnership after January, depriving the Chinese firm of a major revenue source and suspending service for some of the country’s most popular games.
The Hangzhou-based publishing giant and Activision Blizzard Inc. subsidiary failed to agree on an extension to their long-running collaboration, which had brought famed franchises like StarCraft, Diablo, Overwatch and World of Warcraft to Chinese players. Blizzard will suspend most online game services in mainland China from Jan. 23, the US company said on Wednesday. Game sales will also halt in the coming days.