U.S. stock index futures edged higher on Tuesday after starting the week lower due to worries around stricter COVID-19 curbs in China, while drawing comfort from less-hawkish comments on interest-rate hikes from policymakers.
Traders widely expect the Fed to raise rates by 50 basis points in December, with some even betting on a 28.9% chance of a 75-bps hike, according to CME Group's FedWatch Tool.
Investors will keep a close watch on further remarks by St. Louis President James Bullard and Kansas City President Esther George later in the day, and minutes from the Fed's November meeting for more clarity on the monetary policy tightening path.
Market Snapshot
At 7:53 a.m. ET, Dow e-minis were up 82 points, or 0.24%, S&P 500 e-minis were up 10.75 points, or 0.27%, and Nasdaq 100 e-minis were up 23 points, or 0.2%.
Pre-Market Movers
Best Buy (BBY) – Best Buy rallied 9% in the premarket after its third-quarter results beat analyst estimates. The electronics retailer also registered a smaller-than-expected decline in comparable store sales. Discounts helped keep customer traffic flowing to its stores, and Best Buy also raised its full-year forecast.
Tesla (TSLA) – Tesla shares attempted to recoup some declines, rising 1.7%, after falling 6.84% in the previous session when the electric-vehicle maker said it will recall vehicles in the United States.
Dick’s Sporting Goods (DKS) – The sporting goods retailer reported better-than-expected third-quarter profit and revenue and an unexpected increase in comparable store sales. The company also raised its full-year forecast. Dick’s initially surged more than 7% in premarket trading before it dipped negative.
Dollar Tree (DLTR) – Dollar Tree fell 3.2% in the premarket despite a top and bottom line beat for its latest quarter and better-than-expected comparable store sales. The discount retailer projects full-year earnings in the lower half of its prior guidance range.
Abercrombie & Fitch (ANF) – Abercrombie & Fitch soared 15.4% in premarket action after reporting an unexpected quarterly profit and beating Street revenue forecasts. The apparel retailer saw resurgent demand for clothing, like jeans and dresses, as consumers returned to work and participated in more social events.
Medtronic (MDT) – The medical device maker’s stock fell 4.3% in premarket trading after reporting a slight earnings beat on revenue that fell short of the consensus estimate. Medtronic’s results were hit by a stronger U.S. dollar and a slower-than-expected rebound in procedures using its devices.
Zoom Video Communications (ZM) – Zoom tumbled 8.5% in the premarket after issuing weaker-than-expected guidance for the current quarter. The video communications company reported better-than-expected results for its most recent quarter, but the overall growth seen during the pandemic has slowed considerably.
Dell Technologies (DELL) – Dell fell 1.6% in premarket trading amid a weaker-than-expected current quarter revenue forecast. Dell did beat analyst estimates for the third quarter but said a slowing economy, inflation and other economic factors would pressure customer spending.
Urban Outfitters (URBN) – Urban Outfitters reported quarterly earnings that were slightly below estimates, but the apparel retailer’s revenue beat Street forecasts. The company said it was encouraged by the trends seen so far during the holiday quarter. Urban Outfitters gained 3.3% in premarket action.
Agilent Technologies (A) – Agilent jumped 3.9% in off-hours trading after the laboratory instruments maker reported better-than-expected quarterly results. Agilent’s sales increased in all of its business units during the quarter.
Market News
Elon Musk's 2022 Wealth Loss Exceeds $100 Billion for First Time
Elon Musk’s losses for 2022 topped $100 billion as shares of Tesla Inc. dropped to the lowest level in two years.
The Tesla co-founder is still the world's richest person with a fortune of $169.8 billion, according to the Bloomberg Billionaires Index, even after seeing his net worth shrink by $8.6 billion on Monday. He’s down $100.5 billion this year — the most of anyone on the wealth index — after peaking at $340 billion a little more than a year ago.
Microsoft Overtakes Amazon As Stock With Most Long Hedge-Fund Positions
Microsoft is now the favorite stock of hedge funds, surpassing Amazon.com, according to an analysis from Goldman Sachs.
Goldman Sachs analyzed 786 hedge funds with $2.3 trillion of gross equity positions ($1.5 trillion long and $730 billion short) to create a VIP list comprising 50 stocks that appear most often among the top 10 holdings of fundamental hedge funds.
The team, led by Ben Snider, found 82 funds held Microsoft stock as a top 10 holding, while 79 funds had Amazon in their top 10 stock.
Musk Says Twitter to Hold off Relaunching Blue Check Verification
Twitter's new owner Elon Musk said on Monday the social media company is holding off the relaunch of its blue check subscription service, a delay from his initial tentative timeline to bring back the service on the platform.
"Holding off relaunch of Blue Verified until there is high confidence of stopping impersonation," Musk said in a tweet.