U.S. stock index futures were under pressure Thursday, putting the major averages to give up the solid gains made in the previous session.
Market Snapshot
At 7:50 a.m. ET, Dow e-minis were down 527 points, or 1.72%, S&P 500 e-minis were down 81.5 points, or 2.15%, and Nasdaq 100 e-minis were down 301.75 points, or 2.59%.
Pre-Market Movers
Jabil Circuit – The contract electronics manufacturer saw its stock rise 1.2% in premarket trading after beating top and bottom-line estimates for its latest quarter. Jabil earned an adjusted $1.72 per share, 10 cents above estimates, and said it continued to see solid demand from its customers.
Commercial Metals – The metal products manufacturer reported an adjusted quarterly profit of $2.61 per share, beating the $2.02 consensus estimate, and revenue also topped Wall Street forecasts. Commercial Metals also said it was anticipating upbeat financial performance for the current quarter amid a strong construction market. The stock rallied 4.6% in the premarket.
Tesla Motors – Tesla fell 3.8% in premarket trading after Reuters reported that Tesla has increased prices on its U.S. models amid a jump in the price of raw materials and supply chain snags.
Twitter – Twitter gained 2.3% in premarket action following a Wall Street Journal report that Elon Musk will reiterate his desire to own Twitter at an all-hands meeting today. Musk has threatened to pull out of his Twitter buyout deal, accusing the company of withholding information on spam accounts.
Warner Bros. Discovery – The media company’s stock slid 4% in the premarket after J.P. Morgan rated the stock “neutral,” citing a macroeconomic environment that could impact ad spending.
KLA-Tencor – The maker of semiconductors and electronics equipment said it expected an adjusted current-quarter profit of $4.93 to $6.03 per share, compared with the $5.50 consensus estimate. It also announced a $6 billion share repurchase program and a 24% dividend hike ahead of its 2022 Investor Day.
Revlon – Revlon filed for Chapter 11 bankruptcy protection as the cosmetics maker deals with a debt load of roughly $3.3 billion. Shares slid 4.4% in the premarket.
Amazon.com – Amazon said its annual “Prime Day” shopping event would be held from July 12 to 13. Last year’s “Prime Day” event generated an estimated $3.5 billion in sales. Amazon fell 2.8% in premarket trading.
Abbott Laboratories – Abbott said it was halting production of its EleCare specialty baby formula at its Sturgis, Michigan plant after severe storms flooded areas of the plant. Abbott said the flooding would likely delay production and distribution for a few weeks, and its stock fell 2% in the premarket.
Market News
Elon Musk on Wednesday appealed a judge's refusal to end his 2018 agreement with the U.S. Securities and Exchange Commission requiring a Tesla Inc lawyer to vet some of his posts on Twitter.
Spotify Technology S.A. Chief Executive Officer Daniel Ek informed the staff via email on Wednesday that the audio streaming company would reduce its hiring by 25%, according to a source familiar with the contents of the email. Ek said Spotify would continue hiring, though it would slow the pace "and be a bit more prudent" of over the next few quarters.
Tesla Motors increased its Model Y long-range price to $65,990 from $62,990, its website showed on Thursday, after delaying the deliveries of some long-range models in the United States by up to a month. The price hike comes as costs of raw materials have surged, including aluminium that is used in cars.
The European Union's second-highest court scrapped a EUR997 million ($1.04 billion) fine that the bloc's antitrust regulator had levied on Qualcomm over payments it made to Apple Inc. for the iPhone maker's exclusive use of Qualcomm chips.
Health experts advising U.S. health regulators backed giving Covid-19 vaccines from Pfizer and BioNTech SE and from Moderna, Inc. to children as young as 6 months old. The panel voted 21 to 0 in a pair of votes on Wednesday in support of expanding access to the vaccines.
Top executives of General Motors and Ford said on Wednesday U.S. consumer demand for cars and trucks remains strong, despite rising interest rates and record-high gas prices.
Walt Disney has pushed back its original itinerary of moving around 2,000 workers at its Parks, Experience, and Product division to its new campus in the Orlando community of Lake Nona, from the end of this year to 2026, the Hollywood Reporter reported, citing a Disney spokesperson's statement.
Toshiba, Sony and Samsung Electronics on Thursday lost their court fight against an EU cartel fine levied seven years ago for colluding in procurement tenders for optical disc drives.