U.S. stock index futures ticked higher on Tuesday after a steep selloff on Wall Street in the previous session on concerns about aggressive signals from the Federal Reserve on interest rate increases, with manufacturing and services data on tap.
The S&P flash composite Purchasing Managers' Index (PMI) due at 9:45 a.m. ET, which would provide clues on the strength of the U.S. economy, will follow weak readings from Europe earlier in the day that compounded expectations of a recession in the region and pressured global markets.
Market Snapshot
At 07:50 a.m. ET, Dow e-minis were up 24 points, or 0.07%, S&P 500 e-minis were up 4.25 points, or 0.10%, and Nasdaq 100 e-minis were up 21.25 points, or 0.16%.
Pre-Market Movers
Zoom Video Communications (ZM) – Zoom tumbled 11.2% in the premarket after the videoconferencing company cut its full-year forecast. Zoom reported better-than-expected earnings for its latest quarter, but revenue fell short of forecasts. Zoom’s CFO said the company is having some difficulty attracting new, paying subscribers, although he added that enterprise sales are strong.
Palo Alto Networks (PANW) – Palo Alto rallied 9.6% in premarket trading after the cybersecurity company reported better-than-expected quarterly results and issued an upbeat forecast. Palo Alto also announced its board of directors had approved a 3-for-1 stock split.
Macy’s (M) – The retailer’s shares added 2.6% in premarket trading after it beat sales and profit forecasts for its second quarter, and comparable store sales fell less than expected. Macy’s lowered full-year guidance, however, to incorporate risks from a slowing economy.
Dick’s Sporting Goods (DKS) – The sporting goods retailer beat top and bottom line estimates for the second quarter and raised its full-year forecast. Comparable store sales sank by 5.1% during the quarter, but that was smaller than the 6.9% decline expected by analysts. The stock gained 0.6% in the premarket.
Medtronic (MDT) – Medtronic gained 1% in the premarket after reporting quarterly profit and revenue that exceeded analysts’ forecasts. Revenue fell from a year ago as the medical products maker was impacted by supply chain challenges.
JD.com (JD) – The China-based e-commerce company reported better-than-expected quarterly results and saw a 9.2% increase in active customer accounts. JD.com jumped 3.4% in premarket action.
XPeng (XPEV) – XPeng fell 4.8% in premarket action after the China-based electric vehicle maker reported a wider-than-expected quarterly loss, although revenue exceeded analysts’ forecasts as total deliveries nearly doubled from a year earlier.
Pinduoduo (PDD) – Pinduoduo plans to launch an international e-commerce platform next month, according to a source with direct knowledge of the matter who spoke to Reuters. Pinduoduo rose 2.8% in premarket trading.
Warner Bros. Discovery (WBD) – Nearly 10 million viewers watched the “Game of Thrones” prequel “House of the Dragon” on the company’s HBO Max service, a record for an HBO series debut. Warner Bros. Discovery gained 1.5% in the premarket.
J.M. Smucker (SJM) – The food producer’s stock added 1.8% in premarket trading after it reported better-than-expected quarterly profit and raised its full-year outlook.
Market News
Musk Seeks Documents From Jack Dorsey in Fight Over Twitter Deal
Billionaire entrepreneur Elon Musk is seeking documents from Twitter Inc co-founder Jack Dorsey as the CEO of Tesla and SpaceX pursues his legal fight to walk away from his $44 billion deal for the social media company, according to a court filing.
Dorsey, who resigned as Twitter's chief executive in November and left the board in May, was asked for documents and communications about Musk's April agreement to buy the company and about spam accounts on the platform, according to a copy of the subpoena.
Apple’s New iPhone 14 to Show India Closing Tech Gap With China
Apple Inc. plans to begin manufacturing the iPhone 14 in India about two months after the product’s initial release out of China, narrowing the gap between the two countries but not closing it completely as some had anticipated.
The company has been working with suppliers to ramp up manufacturing in India and shorten the lag in production of the new iPhone from the typical six to nine months for previous launches, according to people familiar with the matter.