U.S. stock index futures fell on Tuesday, with investors weighing the possibility of an economic recession as central banks across the world take aggressive actions to contain a surge in inflation.
Market Snapshot
At 8:00 a.m. ET, Dow e-minis were down 217 points, or 0.70%, S&P 500 e-minis were down 30.25 points, or 0.79%, and Nasdaq 100 e-minis were down 30.25 points, or 1.02%.
Pre-Market Movers
Tesla – Tesla delivered 254,695 vehicles during the second quarter, down 17.9% from the first quarter and below what analysts had predicted. China’s Covid-19 shutdowns were a key factor in holding back production. Tesla fell 1% in premarket trading.
Occidental Petroleum – Occidental gained 1.3% in the premarket following news that Berkshire Hathaway (BRKb) once again added to its stake in the energy producer. Berkshire bought 9.9 million more shares, boosting its stake to 17.4%.
Exxon Mobil – Exxon rose 1.3% in premarket trading following its late Friday announcement that second-quarter earnings could be as much as $18 billion. Exxon's results are getting a boost from rising oil and natural gas prices and higher refining margins.
Crocs – Crocs jumped 2.4% in premarket action after the casual shoe maker's stock was upgraded to "buy" from "hold" at Loop Capital.
Stellantis – Stellantis shares slid 6% in the premarket after a union workers report said the worldwide chip shortage could cut the automaker's Italy-based production by about 220,000 vehicles this year. Stellantis produced about 14% fewer vehicles during the first half of 2022 compared with the same period a year ago.
Hecla Mining – The mining company announced a deal to acquire all of the Alexco Resource shares it didn't already own in a stock swap transaction. Hecla will also pay Wheaton Precious Metals (WPM) $135 million to terminate its joint venture with Alexco. Hecla rose 1% in premarket action.
HP Inc. – The computer and printer maker’s shares fell 1.9% in premarket trading after Evercore downgraded the stock to “in line” from “outperform”. The downgrade comes amid a slowdown in demand for personal computers.
AstraZeneca – The drug maker announced a deal to buy biotech firm TeneoTwo in a deal that could be worth up to $1.17 million if certain milestones are reached. AstraZeneca fell 1.1% in the premarket.
Market News
Tesla Will Temporarily Shutter Its Factory in Brandenburg for Two Weeks
Tesla Inc will reportedly "interrupt" production at its Giga Berlin factory in Germany next week, as it looks to iron out speed and quality issues to achieve higher efficiency and meet surging demand for its electric vehicles.
Tesla has also reportedly canceled some Model Y deliveries in Germany, as its Brandenburg factory deals with manufacturing defects while aiming to ramp up production.
Citi Warns Oil May Collapse to $65 by the Year-End on Recession
Crude oil could collapse to $65 a barrel by the end of this year and slump to $45 by end-2023 if a demand-crippling recession hits, Citigroup Inc. has warned.
That outlook is based on an absence of any intervention by OPEC+ producers and a decline in oil investments, analysts including Francesco Martoccia and Ed Morse said in a report. Brent, the global crude benchmark, last traded near $113 a barrel.
AstraZeneca to buy biotech firm TeneoTwo for up to $1.27 billion
AstraZeneca agreed to acquire biotechnology firm TeneoTwo Inc in a deal worth up to $1.27 billion on Tuesday, in a move to bolster its roster of therapies to treat blood cancers.
At the heart of the deal is the U.S.-based company's early stage experimental treatment for a form of Non-Hodgkin's lymphoma, a type of cancer that involves the growth of abnormal white blood cells that can lead to the emergence of tumours.
Shell to Enter Qatar's Giant LNG Project
Shell PLC said Tuesday that it has been selected by QatarEnergy to participate in the North Field East liquefied natural gas expansion project in Qatar.
The U.K. energy giant said it will hold a 25% stake in a joint venture which will own 25% of the project, including four LNG trains with a combined liquefaction capacity of 32 million metric tons a year.