U.S. stock futures fell on Friday morning as investors looked to close out a winning week for markets that saw better-than-expected economic growth and a pop in market-darling Tesla.
Market Snapshot
At 7:50 a.m. ET, Dow e-minis were down 11 points, or 0.03%, S&P 500 e-minis were down 13.5 points, or 0.33%, and Nasdaq 100 e-minis were down 66.75 points, or 0.55%.
Pre-Market Movers
Intel — The chipmaker suffered a 9% loss in its shares in early morning trading after its latest financial results missed analysts’ estimates and showed significant declines in the company’s sales, profit and gross margin. The company also forecasted a loss for the current quarter..
Advanced Micro Devices — Chip stocks such as Advanced Micro Devices fell as a group following Intel’s results. Shares of Advanced Micro Devices fell nearly 2.4%, while shares of Nvidia and Micro dipped about 1.5% each.
Chevron — Shares dipped more than 1% after Chevron reported its latest earnings results. The oil producer missed earnings expectations, but topped revenue forecasts, according to consensus estimates from Refinitiv. The shares had gained on Thursday after Chevron raised its dividend and announced a buyback plan.
American Express — Shares of the credit card company rose 5% despite weaker-than-expected results for the fourth quarter. American Express reported $2.07 in earnings per share on $14.18 billion of revenue. Analysts surveyed by Refinitiv were looking for $2.22 per share on $14.22 billion of revenue. However, American Express’ guidance for 2023 was better than anticipated for earnings and revenue. Also, AMEX said it would be increasing its dividend by 15%.
Ralph Lauren — Shares fell more than 3% after BMO Capital Markets downgraded the stock to underperform. The investment firm said Ralph Lauren’s recent rally has gone too far.
Chewy, Inc. — Chewy shares rose more than 4% after Wedbush upgraded the stock to outperform from neutral.
Silvergate Capital — The bank to crypto businesses slid about 8% after the company suspended payments on its Series A preferred stock dividend, in an effort to preserve capital as it navigates recent crypto market volatility. The stock has been falling since November, after crypto exchange FTX, for whom Silvergate held deposits, collapsed in scandal.
Visa — The payment network operator reported strong financial results for its most recent quarter, including adjusted earnings per share of $2.18 and revenue of $7.94 billion. Analysts expected $2.01 per share in adjusted earnings and $7.70 billion in revenue, according to Refinitiv. Visa shares rose about 1% in premarket trading.
Hasbro — Shares of the toy maker slid more than 5% after the company said it would eliminate around 1,000 employee positions and warned of weak holiday-quarter results. The layoff of around 15% of its global workforce comes as the company seeks to save between $250 million and $300 million annually by the end of 2025.
KLA-Tencor — Chip maker KLA Corporation declined about 4.6% after issuing weaker-than-expected forward guidance for its fiscal third quarter. Otherwise, KLA reported a beat on earnings and revenue expectations.
Buzzfeed — Shares rose 25.36% to $2.62 in pre-market trading. The company’s shares jumped 120% on Thursday following a report suggesting Meta Platforms pays the company millions to generate creator content.
Market News
House Republican leaders are considering proposing a short-term extension of the federal debt ceiling to delay the risk of default until Sept. 30, according to a person familiar with their deliberations, a step that would allow more time to resolve an impasse with Democrats.
Ant Group Co.’s valuation was trimmed again by Fidelity Investments, more than two years after the Chinese government torpedoed its record initial public offering. Fidelity cut its estimate for Ant by about 9% to about $63.8 billion as of the end of November from the end of May.
Intel forecasted Q1 revenue in the range of about $10.5 billion to $11.5 billion, and expects an adjusted loss of 15 cents per share, profit margins may fall further after dropping from 58.4% in Q4 2020 to 39.2% in Q4 2022. Revenue in Q4 fell 32% to $14 billion.
Visa earned $1.99 per share from $7.9 billion in revenue, it had a profit of $4.6 billion, or $2.18 a share. Revenue climbed 12% from a year earlier thanks to a 22% increase in cardholders' spending abroad and a 10% jump in the number of processed transactions. Non-GAAP profits increased by 17%.
Bed Bath & Beyond edged closer to a bankruptcy filing on Thursday after the retailer said it had received a default notice from JPMorgan Chase & Co., its loan agent, and warned it didn’t have enough funds to make payments.
Activist investor Elliott Management Corp. is preparing to nominate a slate of directors at Salesforce.com, according to people familiar with the matter, in a sign that a battle may be looming for board seats at the business-software maker.
Sanofi SA and Regeneron Pharmaceuticals said on Friday the European Union's medicines regulator had given a new stage of approval for their Dupixent product to treat children as young as 6 months old with severe atopic dermatitis.
Hasbro said on Thursday it would cut about 15% of its global workforce this year and estimated holiday-quarter results well below Wall Street expectations amid weakening demand for its toys and games.