U.S. stock index futures slipped on Wednesday, as optimism around Ukraine-Russia peace talks waned and focused shifted to the prospect of rapid increases in interest rates weighing on economic growth.
The Kremlin on Wednesday said there was no sign of a breakthrough yet, a day after pledging even as it welcomed the fact that Kyiv has set out its demands to end the conflict in written form.
Apple notched its 11th consecutive session of gains on Tuesday but inched 0.5% lower in premarket trading.
U.S. fourth-quarter GDP growth revised to 6.9% from 7%; U.S. corporate prextax profits up 21% in fourth quarter vs year earlier.
The broad-based 455,000 gain in payrolls followed a revised 486,000 increase in February, ADP Research Institute data showed Wednesday. The median forecast in a Bloomberg survey of economists called for a 450,000 advance.
Market Snapshot
At 08:35 a.m. ET, Dow e-minis were down 137 points, or 0.39%, S&P 500 e-minis were down 20 points, or 0.43%, and Nasdaq 100 e-minis were down 95.75 points, or 0.63%.
Pre-Market Movers
BioNTech(BNTX) – The drug maker’s shares jumped 9.5% in the premarket after reporting significantly better-than-expected revenue and profit for the fourth quarter. BioNTech also reiterated its prior vaccine revenue guidance for 2022.
Micron Technology(MU) – Micron reported an adjusted quarterly profit of $2.14 per share, 17 cents above estimates. The computer chip maker also reported better-than-expected revenue as data center and smartphone chip sales showed strong growth. Micron issued an upbeat revenue forecast for the current quarter, and the stock jumped 3.9% in the premarket.
Lululemon(LULU) – Lululemon rallied 6.7% in premarket action despite a quarterly revenue miss. The athletic apparel company reported an adjusted quarterly profit of $3.37 per share, 9 cents above estimates, and issued upbeat guidance for 2022. Lululemon also announced a $1 billion share buyback program.
Chewy(CHWY) – Chewy stock was slammed by 13.9% in premarket trading after top and bottom line misses for its latest quarter. The pet products seller lost 15 cents per share, wider than the 8-cent loss that analysts were anticipating, as labor costs rose and profit margins shrunk.
Five Below(FIVE) – The discount retailer’s stock slid 4.4% in premarket trading following a mixed quarterly report. Five Below beat estimates by a penny with quarterly earnings of $2.49 per share, but both revenue and comparable sales came in below analyst forecasts.
WeWork(WE) – WeWork Chief Executive Officer Sandeep Mathrani has added the additional role of chairman at the office-sharing company. He fills the void created when former Chairman Marcelo Claure left earlier this year. WeWork added 3% in the premarket.
Pearson(PSO) – The educational publisher’s stock slumped 7.1% in the premarket after private equity firm Apollo said it was unable to reach an agreement with Pearson on a possible takeover bid, and does not intend to make an offer.
RH(RH) – RH fell 2.6% in premarket trading after the high-end furniture retailer reported lower-than-expected revenue for its latest quarter, although its profit came in slightly above Wall Street forecasts. RH also announced a 3-for-1 stock split.
Norfolk Southern(NSC) – Norfolk Southern rose 2.6% in premarket trading after the railroad operator announced a new $10 billion share buyback program.
Wayfair(W) – The furniture and home decor retailer’s shares took a 4.5% hit in premarket trading after Loop Capital downgraded the stock to “sell” from “hold,” predicting a negative impact from Fed tightening and the end of Covid-related stimulus.
Market News
India’s government is considering a proposal from Russia to use a system developed by the Russian central bank for bilateral payments, according to people with knowledge of the matter, as the Asian nation seeks to buy oil and weapons from the sanctions-hit country.
The plan involves rupee-ruble-denominated payments using Russia’s messaging system SPFS, the people said, asking not to be identified discussing confidential deliberations.
BNP Paribas Exane analyst Stefan Slowinski initiated coverage of Amazon with an underperform rating. That makes him the only analyst among 58 tracked by Bloomberg with the equivalent of a sell call on the fourth-most valuable company in America. The last time an analyst had a sell rating on Amazon was in 2020, according to Bloomberg data.Analyst’s price target for Amazon implies 17% downside.
UK's Arm Ltd is planning to transfer shares in its Chinese joint venture to a SoftBank Group special purpose vehicle to speed up its initial public offering plans, The Financial Times reported on Wednesday, citing people familiar the matter.