U.S. stock index futures edged lower on Wednesday, while traders assessed the latest developments following reports on Tuesday of a missile landing in Polish territory near Ukraine.
Market Snapshot
At 08:09 a.m. ET, Dow e-minis were down 22 points, or 0.07%, S&P 500 e-minis were down 2.75 points, or 0.07%, and Nasdaq 100 e-minis were down 14.75 points, or 0.12%.
Pre-Market Movers
Target(TGT) – Target plunged 13.5% in the premarket after missing consensus estimates by 59 cents with quarterly earnings of $1.54 per share. The retailer expects a drop in holiday season sales and cut its operating margin forecast for the current quarter in half. Target also said it will launch a cost-cutting plan designed to save up to $3 billion per year.
Lowe’s(LOW) – Lowe’s added 2.4% in premarket trading after the home improvement retailer beat top and bottom line estimates for its latest quarter and reported better-than-expected comparable store sales.
Carnival(CCL) – Carnival slumped 12.7% in the premarket after the cruise line operator announced a $1 billion convertible debt offering as part of its refinancing plan.
Advance Auto Parts(AAP) – Advance Auto Parts plummeted 14.7% in off-hours trading after the auto parts retailer posted lower-than-expected quarterly earnings. Although its revenue matched Street forecasts, results were impacted by consumers shifting to its cheaper in-house brands rather than more expensive national brands. The company also lowered its full-year outlook. CompetitorO’Reilly Auto Parts(ORLY) fell 2.9%.
Sage Therapeutics(SAGE) – Sage Therapeutics gained 3.3% in premarket trading after an SEC filing showed CEO Barry Greene added 14,500 shares to his stake in the drug maker.
Corteva(CTVA) – Corteva fell 1% in the premarket after UBS downgraded the seed and crop protection products company’s stock to neutral from buy in what the firm says is a valuation call. Yet, UBS increased its price target on Corteva’s stock to $73 from $70 per share.
Alibaba(BABA),NetEase(NTES) – The China-based companies are among the stocks gaining ground following a Reuters report that U.S. regulators gained “good access” to audits of Chinese firms listed in the U.S. Alibaba rose 1.8% while Netease jumped 3.6% in premarket action.
Etsy(ETSY) – The online crafts marketplace was put on Evercore’s “Tactical Underperform” list, even as the firm maintained an outperform rating on the stock. Evercore likes Etsy’s long-term outlook but foresees a 3-month trend of slower purchase frequency and a shift in spending toward lower-priced items. Etsy slid 3.6% in the premarket.
Market News
Grab Lifts Revenue Outlook on Rideshare, Food Delivery Strength
Grab Holdings Ltd on Wednesday raised its forecast for annual revenue as demand for its ride-hailing service and food deliveries remains strong across Southeast Asia.
U.S.-listed shares of Southeast Asia's biggest ride-hailing and food delivery firm rose 15% in trading before the bell.
Target Warns of Weak Holiday Quarter, Plans Cost Cuts As Profit Tumbles and Sales Slow
Target’s profit fell by around 50% as it cleared through unwanted inventory and sales slowed heading into the holidays, prompting the company to lower its expectations for retailers’ most important time of year.
The company also said Wednesday it plans to cut up to $3 billion in total costs over the next three years, citing the need to become more efficient after two years of dramatic sales gains. The company’s revenue has grown by about 40% during the pandemic.
Former President Donald Trump announces a White House bid for 2024
Former President Donald Trump, aiming to become only the second commander-in-chief ever elected to two nonconsecutive terms, announced Tuesday night that he will seek the Republican presidential nomination in 2024.
“In order to make America great and glorious again, I am tonight announcing my candidacy for president of the United States,” Trump told a crowd gathered at Mar-a-Lago, his waterfront estate in Florida, where his campaign will be headquartered.
NATO, Poland See No Intentional Russian Strike as Crisis Eases
NATO and Poland’s leaders said there is no indication that a missile that struck Polish territory late Tuesday was an intentional Russian attack as governments in the military alliance moved to defuse the incident.