U.S. stock index futures inched lower on Tuesday as investors assessed results from retailers Walmart and Home Depot, while signs of a slowing global economy continued to keep investors on edge.
Market Snapshot
At 07:53 a.m. ET, Dow e-minis were down 3 points, or 0.01%, S&P 500 e-minis were down 2.75 points, or 0.06%, and Nasdaq 100 e-minis were down 9.25 points, or 0.07%.
Pre-Market Movers
Home Depot(HD) – Home Depot reported a quarterly profit of $5.05 per share, 11 cents above estimates, with revenue and comparable store sales also topping Street forecasts. However, the number of customer transactions fell during the quarter. Home Depot moved between gains and losses in premarket trading.
Walmart(WMT) – Walmart rallied 3.4% in premarket trading after reporting better-than-expected top and bottom line results for the second quarter. Comparable store sales also beat estimates, and Walmart projects adjusted earnings will fall slightly less this year than previously thought.
Masimo(MASI) – Masimo gained 2.3% in premarket action after activist investor Politan Capital Management took a 9% stake in the medical technology company. Politan plans to push Masimo to take actions that improve its stock price.
Philips(PHG) – Philips shares were up 2.6% in the premarket after the Dutch health technology company announced that CEO Frans van Houten will leave that job on October 15. He’ll be replaced by Roy Jakobs, who currently heads the company’s Connected Care unit.
BHP(BHP) – BHP stock gained 3% in premarket action after the world’s biggest mining company reported its highest annual profit in 11 years. BHP’s results were boosted by higher prices for coal and other commodities.
Ally Financial(ALLY) – Ally Financial rallied 5.5% in premarket trading after Berkshire Hathaway’s latest 13F filings showed that Warren Buffett’s firm tripled its stake in the online banking company during the second quarter.
Nu Holdings(NU) – Nu Holdings shares leaped 13.5% in the premarket after the Warren Buffett-backed digital banking company reported quarterly revenue that more than doubled from a year earlier.
ThredUp(TDUP) – ThredUp gained 3.3% in premarket trading after the online apparel resale platform reported better-than-expected quarterly revenue and a 29% increase in active buyers.
ZipRecruiter(ZIP) – The online employment website operator posted second-quarter results that were better than expected on continued labor market growth. However, the stock slid 6.2% in the premarket after the company said employers were starting to pull back on job postings as the quarter came to a close.
Market News
Walmart Sticks with Second-Half Outlook after Earnings Beat Expectations
Walmarton Tuesday said sales grew more than 8%, but profits tightened in the fiscal second quarter, as consumers turned to the discounter for groceries and essentials.
The retailer’s results surpassed analysts’ expectations, butechoed its profit warning last month, when Walmart said inflation-pinched shoppers were buying less high-margin discretionary merchandise like apparel as they spent more on necessities.
Sea Quarterly Revenue Miss Estimates, Suspending E-Commerce GAAP Revenue Guidance for the Full Year
Sea (NYSE:SE) reported quarterly losses of $(1.03) per share which beat the analyst consensus estimate of $(1.21) by 14.88 percent. This is a 68.85 percent decrease over losses of $(0.61) per share from the same period last year.
The company reported quarterly sales of $2.90 billion which missed the analyst consensus estimate of $2.97 billion by 2.36 percent. This is a 27.14 percent increase over sales of $2.28 billion the same period last year.
Home Depot Beats Quarterly Sales Estimates
Home Depot Inc reported quarterly comparable sales above Wall Street estimates on Tuesday on steady demand for home-improvement goods from professional builders and handymen.
Analysts have said demand from home-improvement professionals has been strong, even as do-it-yourself customers are reining in their spending, due to a healthy pipeline of remodeling work.
Tencent Plans to Divest $24 Bln Meituan Stake
China's Tencent Holdings plans to sell all or a bulk of its $24 billion stake in food delivery firm Meituan to placate domestic regulators and monetise an eight-year-old investment, four sources with knowledge of the matter said.
Tencent, which owns 17% of Meituan, has been engaging with financial advisers in recent months to work out how to execute a potentially large sale of its Meituan stake, said three of the sources.