U.S. stock index futures rose on Thursday, supported by megacap growth stocks as Treasury bond yields dipped, while focus turned to the Federal Reserve's annual Jackson Hole symposium for clues on the central bank's monetary policy outlook.
Chair Jerome Powell's speech due on Friday will be scrutinized for any indication that an economic slowdown might alter the Fed's strategy and if the central bank can achieve a "soft landing" for the economy.
Electric vehicle maker Tesla Inc rose 2.1% after its 3-for-1 stock split came into effect.
Market Snapshot
At 7:53 a.m. ET, Dow e-minis were up 99 points, or 0.3%, S&P 500 e-minis were up 23 points, or 0.56%, and Nasdaq 100 e-minis were up 90.5 points, or 0.7%.
Pre-Market Movers
Nvidia (NVDA) – Nvidia fell 3.2% in the premarket after missing estimates on the top and bottom lines with its quarterly results. The graphics chipmaker also issued a tepid forecast, as its gaming business continues to deal with weakening demand.
Grab (GRAB) – Grab Holdings Ltd. reported a better-than-expected 79% revenue increase, buoyed by resilient demand from consumers who continued to hail rides and order food despite rising inflation. Grab shares jumped 6.1% in premarket trading.
Snowflake (SNOW) – Snowflake shares soared 19% off-hours trading after the data software company reported better than expected quarterly revenue. CEO Frank Slootman said the company’s consumption-based model – which lets customers adjust how much they use Snowflake’s services after signing a contract – is proving to be an advantage.
Peloton (PTON) – Peloton tumbled 15.7% in premarket trading after reporting a larger than expected loss and revenue that fell well short of Street forecasts. Peloton also said its connected fitness business would remain challenging into 2023.
Salesforce (CRM) – Salesforce slid 7.6% in premarket trading after the business software giant cut its full year guidance, as economic uncertainty slows the pace of customer deals. Salesforce posted better than expected sales and profit for its most recent quarter.
Dollar Tree (DLTR) – The discount retailer's stock slid 7.4% in the premarket after cutting its full-year earnings forecast, due to the impact of pricing-related investments at its Family Dollar stores. Dollar Tree reported better than expected profit for its latest quarter, with revenue in line with Wall Street estimates.
Dollar General (DG) – Dollar General reported better than expected quarterly results, as well as same-store sales that rose more than analysts had anticipated. The discount retailer also increased its share repurchase authorization. The stock had been higher in the premarket but dipped negative after rival Dollar Tree cut its full-year forecast.
Telehealth stocks – Shares of telehealth companies jumped following news that Amazon.com (AMZN) is shutting down its in-house telehealth service for employees. Teladoc Health (TDOC) gained 6.4%, Hims & Hers Health (HIMS) added 4.2% and Amwell (AMWL) jumped 5.2%.
Victoria's Secret (VSCO) – Victoria's Secret lost 3.8% in premarket trading after the women's intimate apparel maker cut its full year outlook. The company said it expected its customers to be impacted by inflation and other financial challenges.
Abercrombie & Fitch (ANF) – Abercrombie shares took a 14.2% hit in the premarket after the apparel retailer reported an unexpected quarterly loss and lower than expected revenue numbers. It also cut its full year sales forecast, citing the impact of inflation.
Autodesk (ADSK) – The design software maker’s stock surged 8.7% in premarket action after it gave an upbeat financial forecast and called demand “robust.” It also reported better than expected results for its latest quarter.
Callaway Golf (ELY) – Callaway Golf rose 0.1% in the premarket after announcing plans to change its name to Topgolf Callaway Brands, to reflect a lifestyle approach to its golf equipment and apparel offerings. The name change will be effective on or about September 6.
Market News
Tesla Shares in the Limelight As 3-1 Stock Split Kicks in
Tesla Inc's shares take center stage on Thursday after the world's most valuable automaker split its stock for the second time in as many years to woo more retail investors.
The shares will trade at a split-adjusted price on Aug. 25.
The stock closed at $891.29 on Wednesday before the three-for-one split took effect.
Biden to Cancel Student Debt for Millions
President Biden will forgive up to $20,000 in federal student loan debt for tens of millions of Americans, a move that will provide unprecedented relief for borrowers but is certain to draw legal challenges and political pushback.
Following more than a year of internal debate, the president said Wednesday that he will cancel $10,000 in federal student loan debt for borrowers making under $125,000 a year or couples making less than $250,000 a year. In addition, those who receive federal Pell Grants and make less than $125,000 a year would be eligible for total forgiveness of $20,000, Mr. Biden said.