U.S. stock futures gained in early pre-market trade, with investors continuing to contemplate the next policy moves by the Federal Reserve.
Market Snapshot
At 8:15 a.m. ET, Dow e-minis were up 122 points, or 0.35%, S&P 500 e-minis were up 11 points, or 0.24%, and Nasdaq 100 e-minis were up 24 points, or 0.17%.
Biogen – Biogen fell 1% in premarket trading after the government announced that Medicare will limit coverage for Aduhelm, Biogen’s Alzheimer’s disease treatment. Coverage will only be provided for patients enrolled in clinical trials.
Spirit Airlines – Spirit said it will begin talks with JetBlue(JBLU) about its rival’s $3.6 billion takeover bid. Spirit had agreed earlier this year to be taken over by Frontier Airlines parent Frontier Group(ULCC) but said the JetBlue offer could lead to a “superior proposal.” Spirit rose 1.4% in premarket trading, while JetBlue added 1% and Frontier jumped 2.5%.
WD-40 – WD-40 surged 9.5% in the premarket following better-than-expected quarterly earnings and revenue. The lubricant maker earned $1.41 per share for the quarter, 40 cents above estimates, although it cut its full-year guidance slightly due to inflationary challenges.
Designer Brands – The footwear and accessories retailer raised its full-year earnings outlook and reinstated its quarterly dividend after a two-year pause. The upbeat forecast comes ahead of the company’s annual investor day. Designer Brands stock jumped 4.6% in the premarket.
Kroger – The supermarket operator’s stock added 2.6% in premarket action after Bank of America Securities upgraded it to “buy” from “neutral.” BofA said elevated food inflation will be among several upside earnings drivers.
CrowdStrike – CrowdStrike rallied 3.7% in premarket action after the cloud computing company received authorization to protect critical assets of the U.S. Department of Defense.
Workday – The finance and human resources software company struck a new $1 billion credit agreement with lenders, replacing a prior credit pact.
PriceSmart – PriceSmart beat estimates by 3 cents with a quarterly profit of $1.03 per share and the discount retailer’s revenue was slightly above Wall Street forecasts. Merchandise sales were above $1 billion for the first time ever and membership levels also set a record.
Zhihu - Zhihu shares jumped 8% in premarket trading after passing HKEx listing hearing.
Market News
Elon Musk’s Cyber Rodeo Celebrates Tesla’s New Austin Plant
Elon Musk threw an elaborate party for more than 15,000 people Thursday night in the U.S. to celebrate Giga Texas,Tesla Inc.’s newest factory in Austin, Texas, and the company’s rapid expansion.
The “Cyber Rodeo” featured art installations including a Tesla coil, multiple stages and a sea of Texas-made Model Y sport utility vehicles, arranged to look like the Texas state flag. Tesla’s chief designer, Franz von Holzhausen, appeared on stage with Musk and the forthcoming Cybertruck, which will go into production next year.
TSMC Sales Soar to Record on Demand for Smartphones, Cars
Taiwan Semiconductor Manufacturing Co. revenue rose to a record in the first quarter on demand for chips used in smartphones, computers and cars, while a prolonged shortage helped to boost prices.
Revenue jumped 36% to NT$491.1 billion ($17 billion) in the three months through March, the company said in a statement Friday. Analysts estimated NT$469.4 billion on average. TSMC, the world’s largest contract chipmaker, is slated to report full earnings later this month.
Goldman Sachs Analyst Upgraded Coupang Inc to Conviction Buy
Goldman Sachs analyst Eric Cha upgraded Coupang Inc to Conviction Buy from Buy with a price target of $37, down from $52. The price target implies an upside of 108.5%.
Cha also thinks that the market underestimates Coupang's operating leverage potential concealed under COVID-induced expenses.
Apple Set to Stream 'Friday Night Baseball'
Apple will be shooting for a home run on Friday night as it steps up to the plate with its first live sports broadcast. Friday Night Baseball will debut on Apple TV+ with a streaming doubleheader as the New York Mets meet the Washington Nationals at 7 p.m. and the Los Angeles Angels host the Houston Astros at 9:30 p.m. ET.
Apple reportedly paid $85M for the two games each week, which will be available for free for a limited time without having a $4.99/monthly subscription to the streaming service.
Walmart Boosts Industry-Leading U.S. Trucker Pay To $110,000
Walmart said it is boosting starting pay for its 12,000 long-haul truck drivers who deliver merchandise to its stores and Sam's Clubs locations amid a U.S. shortage of drivers that threatens to prolong supply chain snarls and merchandise shortages.
Walmart Inc is also following rival Amazon.com Inc in incentivizing employees in other roles to retrain for in-demand transportation jobs required to ease supply chain bottlenecks and support their online operations.