U.S. stock futures slid on Friday as investors focused on new inflation data. Wholesale Prices rose 0.3% in November, more than expected, despite hopes that inflation is cooling.
Market Snapshot
At 8:35 a.m. ET, Dow e-minis were down 152 points, or 0.45%, S&P 500 e-minis were down 20.75 points, or 0.52%, and Nasdaq 100 e-minis were down 60.5 points, or 0.52%.
Pre-Market Movers
Lululemon Athletica – Lululemon slid 7.1% in the premarket after the athletic apparel maker issued a weaker-than-expected outlook. Lululemon reported better-than-expected profit and revenue for its latest quarter, but it saw a smaller-than-expected increase in comparable store sales.
Costco – Costco missed estimates on both the top and bottom lines for its latest quarter as inflation-hit consumers cut back on spending. The warehouse retailer also saw increased operating expenses.
Broadcom – Broadcom shares rallied 3.6% in premarket action after the chip maker reported better-than-expected quarterly results and an upbeat outlook. The company also raised its dividend and said it would resume share buybacks.
Netflix – Netflix gained 3% in the premarket following two positive analyst reports. Wells Fargo upgraded the streaming service’s stock to overweight from equal weight, saying content growth would lessen customer churn. Cowen named the stock a “best idea” for 2023, pointing to additional monetization avenues including the new ad-supported tier.
Docusign – DocuSign posted an 11.3% premarket jump following upbeat quarterly results for the electronic signature technology company. DocuSign also reported better-than-expected billings — a metric that tracks sales to new customers — plus subscription renewals and additional sales to existing customers.
AmerisourceBergen –Walgreens(WBA) has cut its stake in the drug distributor, selling $1 billion in AmerisourceBergen shares. The move cuts Walgreens’ stake to about 17% from 20% and will give Walgreens funds to pay down debt and fund strategic priorities. Walgreens remains AmerisourceBergen’s largest shareholder. AmerisourceBergen fell 2.6% in the premarket.
Bath & Body Works Inc. – Bath & Body Works shares jumped 4.9% in the premarket following news that Daniel Loeb’s Third Point has a more than 6% stake in the personal care products retailer. An SEC filing also revealed that Third Point is pushing the company to appoint new board members.
Restoration Hardware – The company formerly known as Restoration Hardware beat top and bottom line estimates in its latest quarterly report. But the luxury lifestyle retailer also said its business would continue to deteriorate because of accelerating weakness in the housing market. RH rose 1% in premarket action.
Market News
The US Federal Trade Commission is seeking to block Microsoft’s $69 billion acquisition of Activision Blizzard Inc., saying the tie-up between the Xbox maker and popular gaming publisher would harm competition.
Amazon.com has launched a TikTok-style service that will let shoppers buy merchandise from a curated feed of photos and video. It said the new feature, called Inspire, will roll out to select US customers in early December and go national in the next few months.
Meta Platforms, Inc.’s lawyer said the US antitrust enforcers are pursuing “an aggressive effort to make law with no real evidence” in their suit to block the company from buying a virtual reality startup.
Taiwan Semiconductor Manufacturing’s revenue for November 2022 was approximately NT$222.71 billion, an increase of 5.9 percent from October 2022 and an increase of 50.2 percent from November 2021. Revenue for January through November 2022 totaled NT$2,071.33 billion, an increase of 44.6 percent compared to the same period in 2021.
Twitter will roll out new controls as soon as next week to let companies prevent their ads from appearing above or below tweets containing certain keywords, the social media platform told advertisers in an email on Thursday.
Exxon Mobil and Chevron - disclosed plans to increase outlays on energy projects next year amid high oil demand and prices.While spending more, it will be less than half the combined $84 billion they spent in 2013, when oil prices often traded above $100 per barrel as it has this year. The two are awash in cash from those prices and past cost-cuts, and have sharply raised shareholder payouts.
Broadcom Thursday reported Q4 earnings of $10.45 a share, up from $7.81 a share during the same quarter last year. Revenue increased 21% year-over-year to $8.93 billion during the three months ended Oct. 30.
Li Auto’s Q3 revenues were RMB9.34 billion (US$1.31 billion), representing an increase of 20.2% from RMB7.78 billion inQ3 2021;Net loss was RMB1.65 billion (US$231.3 million), compared with RMB21.5 million inQ3 2021.