U.S. Stock futures were lower in trading Wednesday after a key U.S. inflation report. S&P 500 futures cut gains, turn negative after April inflation rises more than expected.
Market Snapshot
At 8:45 a.m. ET, Dow e-minis were down 121 points, or 0.38%, S&P 500 e-minis were up 25 points, or 0.63%, and Nasdaq 100 e-minis were down 139 points, or 1.13%.
Pre-Market Movers
Wendy’s –Wendy’s reported adjusted profit of 17 cents per share, 1 cent below estimates, with revenue and same-store sales also missing analyst forecasts. The restaurant chain is seeing a negative impact from higher costs for supplies and labor, and its shares slid 3.4% in premarket trading.
Krispy Kreme – Krispy Kreme gained 1.6% in the premarket after beating top and bottom line estimates for its latest quarter. The donut chain’s “sales per hub” metric jumped 49.2% for international markets and 19.4% for the U.S. and Canada.
Perrigo – Perrigo fell 4.1% in premarket trading after reporting a mixed quarter, with adjusted profit of 33 cents per share falling short of the 42 cent consensus estimate. However, the over-the-counter drug maker did report better than expected revenue and raised its full-year outlook after completing the acquisition of consumer health care company HRA Pharma earlier this month.
Roblox – Roblox posted a wider than expected loss for its latest quarter as well as sales that fell shy of Street forecasts. The gaming platform company also said it expects losses to continue for the foreseeable future, as expenses rise and as pandemic-induced demand increases fade. Roblox fell 1.1% in premarket action, paring an earlier 10% off-hours loss.
Unity Software – Unity Software plunged 23% in the premarket, after the video game software developer issued weaker than expected revenue guidance. Its latest quarterly loss matched estimates, but it sales were shy of consensus.
Coinbase – Coinbase slumped 18% in premarket trading after it reported an unexpected quarterly loss. The cryptocurrency exchange operator lost $1.98 per share for its latest quarter, compared to consensus forecasts of an 18 cents per share profit. Coinbase noted a decline in users amid an ongoing slump in the crypto market.
Occidental Petroleum – Occidental Petroleum added 1.3% in premarket action following an earnings beat for its latest quarter, helped by surging oil prices. Occidental is the top gainer among S&P 500 stocks, having more than doubled this year.
Toyota – Toyota said its profit for the current fiscal year could take a 20% hit due to a jump in raw materials costs. The automaker said it would work with suppliers to come up with alternative materials and other ways to reduce expenses. Shares fell 2.2% in premarket trading.
RealReal – RealReal rallied 9.3% in the premarket after the seller of secondhand luxury goods reported better than expected quarterly sales. It did report a wider than expected loss, but it said it was poised to benefit from an inflationary trend in the prices of new luxury goods.
H&R Block – H&R Block reported better than expected quarterly sales and profit, with the tax-preparation company also raising its forecast on upbeat tax season results. H&R Block shares jumped 3.3% in premarket trading.
Market News
Apple to Discontinue the iPod Touch, Signaling the End of Iconic iPod Line
Apple Inc.'s iPod helped revolutionize the music industry when it was introduced more than two decades ago. Now, music fans will soon bid adieu to the portable player.
The tech giant said Tuesday that its iPod Touch will only be available while supplies last. It also highlighted other ways people can listen to music across its various products.
Elon Musk Says Tesla Will Expand Giga Shanghai But No New Plant Planned In China
Tesla Inc CEO Elon Musk said on Tuesday that the electric vehicle maker would expand its Giga Shanghai factory but has no plans to launch any new plants in China.
Ford Sells 8 Million Shares of Rivian for $214 Million, Or $26.80 a Piece
Ford Motor Co sold 8 million shares of electric carmaker Rivian Automotive Inc for $214 million, or $26.80 apiece, the U.S. automaker said in a filing on Tuesday.
Ford now holds 93.9 million shares in the California-headquartered company.
Rivian's shares opened at a record low on Monday after the sale was reported by CNBC over the weekend.
Toyota Warns Annual Profit to Skid 20% on Materials, Logistics Costs
Toyota Motor Corp warned that operating earnings this year could slump by a fifth "due to unprecedented increases in materials and logistics costs," on the back of a 33% slide in fourth-quarter profit, sending its shares down more than 5%.
Toyota said it expects materials costs to more than double to 1.45 trillion yen ($11.1 billion) in the fiscal year that started in April.
NIO Expects to List on the Singapore Exchange on May 20th
NIO Inc. , a pioneer and a leading company in the premium smart electric vehicle market, today announced that it expects its Class A ordinary shares, par value US$0.00025 per share to be listed and commence trading on the Main Board of the Singapore Exchange Securities Trading Limited on May 20, 2022 (Singapore Time), subject to fulfilment of the conditions set out in the eligibility-to-list letter from the SGX-ST.
On May 5, 2022, the Company announced that it received the ETL from the SGX-ST with regard to its proposed secondary listing of its Shares by way of introduction on the Main Board of the SGX-ST.
SoFi Tops Expectations with Latest Earnings, Gives Mixed Outlook
SoFi Technologies Inc. topped expectations with its latest results Tuesday but delivered a mixed forecast in an earnings report that came out several hours before it was officially expected.
The financial services and loans company posted a net loss of $110.4 million, or 14 cents a share, compared with a loss of $177.6 million, or $1.61 a share, in the year-prior period. Analysts tracked by FactSet were expecting 13 cents a share in net earnings.
The company also logged adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) of $8.7 million, up from $4.1 million a year before, whereas analysts were modeling $5 million.