U.S. stock futures were lower on Friday to close out another losing week as investors fear the Federal Reserve’s aggressive hiking campaign to fight inflation will lead to an economic downturn.
Market Snapshot
At 7:50 a.m. ET, Dow e-minis were down 356 points, or 1.18%, S&P 500 e-minis were down 49.5 points, or 1.31%, and Nasdaq 100 e-minis were down 164.75 points, or 1.42%.
Pre-Market Movers
FedEx – FedEx remains on watch this morning after announcing a 6.9% increase in shipping rates and plans to cut another $4 billion in annual costs. FedEx fell 3.2% in the premarket.
Costco – Costco lost 3.3% in the premarket despite reporting better-than-expected profit and sales for its latest quarter. The company reported operating margins that were slightly below consensus. Costco said it has no immediate plans to raise membership prices, but said it would happen at some point.
Boeing – Boeing will pay $200 million to settle SEC charges that it made misleading claims about the safety risks of its 737 MAX jet after two of the planes were involved in fatal crashes. Former CEO Dennis Muilenburg will pay $1 million as part of the settlement, with both parties neither admitting nor denying wrongdoing. Boeing lost 1.8% in the premarket.
Raytheon Technologies Corporation – Raytheon won a $985 million Pentagon contract to develop hypersonic attack cruise missile prototypes, beating out rivals Boeing and Lockheed Martin(LMT).
CalAmp – The “internet of things” software company’s stock rallied 3.5% in premarket action after it reported a smaller-than-expected quarterly loss with revenue that topped analyst forecasts. CalAmp saw record software and subscription services revenue during the quarter.
Ally – The financial services company’s stock fell 2.7% in the premarket after Wells Fargo downgraded it to “equal weight” from “overweight”. Wells said Ally will feel pressure from Fed rate hikes and an accelerating decline in used vehicle prices, which impacts yields from leases.
Qualcomm – Qualcomm said its future automotive business pipeline increased to $30 billion in orders, up by more than $10 billion since July. The increase came primarily from orders for its Snapdragon Digital Chassis computer chip. Qualcomm, however, fell 2% in premarket action.
fuboTV Inc. – The sports-focused streaming service was upgraded to “outperform” from “neutral” at Wedbush, which sees the stock at a compelling entry point. Wedbush expressed confidence that fuboTV can successfully raise capital and cut its cash burn rate. The stock gained 2% in the premarket.
Market News
"Electric vehicles are the key technology to decarbonize road transport, a sector that accounts for 16% of global emissions," according to theIEA’sreport. "The Net Zero Emissions by 2050 Scenario sees an electric car fleet of over 300M in 2030 and electric cars accounting for 60% of new car sales."
Apple released a software update aimed at fixing bugs found in early iPhone 14 units, including a problem that made the device’s camera shake when used with some apps.
Qualcomm on Thursday said its automotive business "pipeline" increased to $30 billion, up more than $10 billion since its third quarter results were announced in late July.
Credit Suisse Group AG denied it’s exiting the US market following a Reuters report that the Swiss bank was mulling such a withdrawal for its investment bank.
The Pentagon on Thursday said it awarded Raytheon Technologies Corporation a $985 million dollar contract to develop prototypes for a hypersonic attack cruise missile, putting the firm well ahead of rivals in the race to become lead developer of the strategic weapons.
Boeing will pay $200 million to settle a Securities and Exchange Commission investigation into allegedly misleading statements the company and then-Chief Executive Dennis Muilenburg made about the 737 MAX jets that crashed in Indonesia and Ethiopia, regulators said.
FedEx on Thursday outlined cost cuts of up to $2.7 billion from parking planes, suspending some Sunday deliveries and shuttering corporate offices after falling demand hammered first-quarter profits.
Costco’s gross margins for the reported quarter were squeezed as it battles higher freight and labor costs due to rising inflation and global supply chain snags, total revenue rose 15% to $72.10 billion in the fourth quarter.