U.S. stock futures slid Wednesday, with traders fretting over the possibility of a recession as the Federal Reserve could raise rates for longer than expected.
Market Snapshot
At 7:50 a.m. ET, Dow e-minis were down 134 points, or 0.41%, S&P 500 e-minis were down 24.75 points, or 0.63%, and Nasdaq 100 e-minis were down 119 points, or 1.03%.
Pre-Market Movers
Campbell Soup – Campbell Soup beat estimates by 14 cents with adjusted quarterly earnings of $1.02 per share. Revenue also beat consensus and the food producer said its results were helped by strong pricing, improved productivity and supply chain improvements. Campbell Soup rose 1.2% in the premarket.
Pinterest, Inc. – Pinterest rose 1.2% in premarket trading after an official from activist investor Elliott Management was added to the image-sharing website operator’s board of directors. Senior portfolio manager Marc Steinberg will become Pinterest’s eleventh board member, and the company agreed to renominate him for a new three-year term at next year’s annual meeting.
Toll Brothers – Toll Brothers beat top and bottom line estimates for its latest quarter, with results helped by strong pricing for the luxury home builder. Toll Brothers added 1.2% in the premarket.
Thor Industries Inc – The recreational vehicle maker reported a quarterly profit of $2.53 per share, well above the $1.81 consensus estimate, with revenue also topping Wall Street forecasts. Thor said its business performed “exceedingly well” during the quarter given ongoing macroeconomic headwinds.
Lowe's – The home improvement retailer announced a new $15 billion share repurchase program and reaffirmed its full-year forecast. The actions come ahead of the company’s annual analyst and investor conference today.
Carvana Co. – Carvana creditors, including Apollo Global Management and Pimco, signed a cooperation agreement and will work together as the online used car seller goes through a debt restructuring process. Carvana tumbled 18.2% in premarket trading.
MongoDB Inc. – MongoDB shares soared 26.6% in premarket trading after the database software company reported a surprise quarterly profit and forecast another profit for the current quarter.
Dave & Buster's Entertainment – Dave & Buster’s shares slid 3.9% in premarket action even though its quarterly profit matched analyst estimates. The restaurant and entertainment venue’s revenue beat consensus.
Stitch Fix Inc. – Stitch Fix shares fell 2.2% in the premarket after the online clothing company trimmed its full-year forecast amid a further decline in the number of active clients.
Airbnb, Inc. – Airbnb fell 3.8% in premarket trading after Morgan Stanley downgraded the stock to underweight from equal-weight. Morgan Stanley pointed to slowing growth in listings and lower room night demand.
Market News
China on Wednesday announced a broad loosening of COVID-19 restrictions, saying some positive cases can now quarantine at home and scaling down mandatory PCR testing requirements.
Apple has scaled back ambitious self-driving plans for its future electric vehicle and postponed the car’s target launch date by about a year to 2026, according to people with knowledge of the matter.
Microsoft executives are set to meet with US Federal Trade Commission Chair Lina Khan and other commissioners Wednesday to make its final case in favor of its deal to buy gaming studio Activision Blizzard Inc., a person familiar with the meetings said.
Tesla Motors is offering a limited time discount of 6,000 yuan ($859.20) to Chinese buyers on some models from Wednesday through to the end of 2022, a company representative said on Wednesday.
Meta Platforms, Inc. cannot run advertising based on personal data and will need users' consent to do so, according to a confidential EU privacy watchdog decision, a person familiar with the matter said on Tuesday.
Taiwan Semiconductor Manufacturing plans to build a second chip plant in Arizona and more than triple its initial investment to $40 billion, estimating on Tuesday annual revenue of $10 billion from the plants when they are up and running.
Netflix co-Chief Executive Ted Sarandos on Tuesday (Dec 6) said he has yet to see a path to profitability in live sports on the streaming service. Sarandos said the economics of professional sports were built around the economics of television - and buying rights is expensive.
Adobe has eliminated about 100 jobs, concentrated in sales, joining many other tech companies in using staff cuts to reduce expenses.