U.S. stock index futures were flat on Wednesday as investors focused on the minutes of the Federal Reserve's November meeting for a clearer picture of its monetary tightening policy.
Traders are now placing their bets on a 50 basis-point increase in the central bank's next meeting in December.
Market Snapshot
At 7:52 a.m. ET, Dow e-minis were up 21 points, or 0.06%, S&P 500 e-minis were up 5.75 points, or 0.14%, and Nasdaq 100 e-minis were up 26.5 points, or 0.23%.
Pre-Market Movers
Tesla (TSLA) – Tesla added 2.9% in the premarket after Citi upgraded the stock to neutral from sell, citing valuation. Tesla has lost about 50% of its value this year.
Deere (DE) – The heavy equipment maker reported better-than-expected profit and revenue for its latest quarter and issued an upbeat outlook. Deere said it benefited from positive farm fundamentals and increased infrastructure investment. Its stock jumped 3.7% in premarket trading.
HP Inc. (HPQ) – HP rose 3.1% in the premarket after announcing it will cut up to 10% of its 61,000-person workforce over the next three years due to an extended slump in personal computer demand. The computer maker also reported better-than-expected profit and revenue for its latest quarter.
Nordstrom (JWN) – Nordstrom beat top and bottom line estimates for its latest quarter, but its stock slumped 7.8% after the retailer said sales have slowed over the past few months. Nordstrom also cut its profit outlook for the fiscal year ending in January.
Manchester United (MANU) – Manchester United rallied another 9.2% in the premarket, following yesterday’s 14.7% jump, after the soccer club said it was considering strategic alternatives including a possible sale.
Autodesk (ADSK) – Autodesk matched top and bottom line estimates in its latest quarterly report, but the maker of design software issued weaker-than-expected guidance for the current quarter. Autodesk noted a challenging economic environment and said customers were more reluctant to sign longer-term contracts. The stock tumbled 9.6% in premarket trading.
Guess (GES) – Guess lost 7.5% in the premarket after reporting weaker-than-expected quarterly earnings and a reduced outlook. The apparel company pointed to a challenging retail environment and the impact of a stronger U.S. dollar, although it said it is well-positioned for the holiday season.
Credit Suisse (CS) – The Swiss bank’s stock fell 2.2% in premarket action after it warned of a $1.6 billion quarterly loss as customers pull their money from Credit Suisse on concerns about its financial health. Credit Suisse shareholders approved a $4.2 billion capital raise intended to shore up the company’s finances.
Market News
EU Considers Imposing Price Cap of $65-$70 on Russian Oil
The European Union, in coordination with the Group of Seven nations, is discussing capping the price of Russian crude oil at between $65 and $70 a barrel, according to people familiar with the matter.
EU ambassadors are meeting on Wednesday with the aim of approving the cap mechanism and a proposed price level. If they do, the EU and G-7 could announce the price cap level later Wednesday, the people said.
Tesla’s Stock Slump Has Gone Too Far, Morgan Stanley Says
After losing nearly $300 billion in market value in two months, a growing chorus of Tesla Inc. analysts say the share-price decline has gone far enough.
Morgan Stanley analyst Adam Jonas said on Wednesday that Tesla is approaching his “bear case” price target of $150, presenting an opportunity for investors to buy at a bargain price. Citi analysts upgraded the shares to neutral from sell, saying that a more than 50% slump this year “has balanced out the near-term risk/reward.”