U.S. stock index futures fell on Monday, as Treasury yields edged up with investors wary about prospects of the Federal Reserve toning down its hawkish stance on inflation as they brace for another jumbo-sized interest rate hike this week.
Market Snapshot
At 7:50 a.m. ET, Dow e-minis were down 83 points, or 0.25%, S&P 500 e-minis were down 11.5 points, or 0.29%, and Nasdaq 100 e-minis were down 51.5 points, or 0.44%.
Pre-Market Movers
Wynn Resorts(WYNN) – Investor Tilman Fertitta has taken a 6.1% stake in the resort operator, according to a Securities and Exchange Commission filing. Wynn shares rallied 4.2% in premarket action.
Petrobras(PBR) – The Brazilian state-run oil company’s shares slid 8.5% in premarket trading afterLuiz Inácio Lula da Silva defeated Jair Bolsonaroin the Brazilian presidential election.
Hanesbrands(HBI) – The apparel maker received a double-downgrade at Wells Fargo Securities, which cut the stock’s rating to “underweight” from “overweight.” Wells Fargo is concerned about the company’s debt position, as well as business headwinds that it feels are largely out of management’s control. Hanesbrands slid 3.8% in the premarket.
Paramount Global(PARA) – The media company’s stock was downgraded to “underweight” from “equal weight” at Wells Fargo Securities, which had downgraded the stock to “equal weight” only a few weeks ago. Wells Fargo said the original downgrade came amid concerns about cord-cutting and the rising cost of sports rights, and that the situation has worsened since then. Paramount Global fell 3.7% in premarket action.
Emerson Electric(EMR) – The industrial conglomerate is selling a majority stake in its climate technologies business to private-equity firmBlackstone(BX). The transaction would value the unit at $14 billion, including assumed debt. Emerson gained 1.3% in the premarket while Blackstone was unchanged. Separately, Emerson reported better-than-expected quarterly profit and revenue.
Caterpillar(CAT) – The heavy equipment maker’s shares lost 1.2% in the premarket after UBS downgraded the stock to “neutral” from “buy.” UBS said the downgrade reflects a more balanced risk/reward profile, but is still upbeat on Caterpillar’s prospects over the longer term.
Keurig Dr Pepper(KDP) – The beverage maker’s stock fell 1.8% in premarket trading after Truist Securities downgraded it to “sell” from “neutral.” Truist believes the company’s coffee business will prove to be a drag on sales and profit growth through 2023.
XPO Logistics(XPO) – The logistics firm reported quarterly profit of $1.45 per share, beating estimates by 10 cents a share. Revenue also topped analysts’ forecasts, helped by revenue improvement in XPO’s less-than-truckload business.
Market News
Ford Slashes Prices of Mustang Mach-E in China
Ford has slashed the price of its Mustang Mach-E models in China by as much as RMB 28K, CnEVPost reported on Monday.
The price adjustments come after Tesla also cut prices in the country. The Mach-E is a competitor to Tesla's Model Y.
Credit Suisse Unveils Details of $4 Billion Capital Raising Plan
Credit Suisse on Monday unveiled details of its plan to raise 4 billion Swiss francs ($4.01 billion) from investors to support the embattled bank's bid to tackle the biggest crisis in its 166-year history.
Blackstone, Emerson Electric Strike $14 Billion Buyout Deal
Emerson Electric Co. is selling a majority stake in its climate-technologies business to Blackstone Inc. in a transformational deal for the industrial company that would value the unit at $14 billion including debt and mark the biggest private-equity buyout in months at a time when such activity has been choked off by market volatility.