Pre-Bell｜U.S. Futures Slip; Tesla, Alibaba, Palantir and Sea Drop 3%; One Luxury Fashion Company Tumbles 42%
U.S. stock index futures edged lower on Friday after a three-day selloff on Wall Street, as evidence of a resilient U.S. economy spurred fears that the Federal Reserve would hold interest rates for longer than previously expected.
Market Snapshot
At 7:50 a.m. ET, Dow e-minis were down 140 points, or 0.41%, S&P 500 e-minis were down 23 points, or 0.52%, and Nasdaq 100 e-minis were down 122.25 points, or 0.83%.
Pre-Market Movers
Farfetch (FTCH) - Farfetch slumped 41.6% after the luxury fashion company’s second-quarter sales of $572 million missed analysts’ expectations of $650 million.
Tesla (TSLA) - Tesla stock drops another 2.5% in premarket trading Friday. As of Thursday, the stock has fallen by nearly 10% for the week. Tesla Inc. made its second round of price cuts in China this week, further fueling concerns of reigniting a price war.
Palantir (PLTR) - Palantir stock drops another 3% in premarket trading Friday after tumbling 8.4% Thursday. While further details about the specific factors influencing the decline are not provided, it can be inferred that a general downturn in the stock market contributed to the poor performance of Palantir’s shares.
Sea (SE) - Sea stock dropped more than 3% in premarket trading Friday after multiple analysts downgraded its rating and target price. As of Thursday, Sea stock has tumbled over 30% after earnings.
Alibaba (BABA), JD.com (JD) - American depositary receipts of Alibaba fell 3.1%, and JD.com declined 4.5% as China’s central bank bolstered its defense of the yuan as fears over the health of the world’s second-largest economy continued to mount.
XPeng (XPEV) - XPeng reported a second-quarter adjusted loss of 43 cents a share. U.S.-listed shares of the Chinese electric-vehicle maker were down 7% in premarket trading.
Applied Materials (AMAT) - Fiscal third-quarter earnings at Applied Materials topped Wall Street expectations as did its fourth-quarter outlook, sending shares of the maker of semiconductor-manufacturing equipment up 2% in premarket trading. “Over the past several years, we have focused our strategy and investments on key technologies to accelerate the Internet of Things and AI era, enabling us to consistently deliver strong results in 2023 and positioning Applied Materials for sustainable outperformance,” said CEO Gary Dickerson in a statement.
Keysight Technologies (KEYS) - The test equipment manufacturer, issued a weaker-than-expected fiscal fourth-quarter outlook and the stock was falling 12.5% in premarket trading. Keysight forecast earnings of $1.83 to $1.89 a share on revenue between $1.29 billion and $1.31 billion. Analysts were expecting profit of $2 a share on revenue of $1.39 billion.
Bill Holdings (BILL) - Bill Holdings, which makes software that helps small businesses pay their bills, said it expects fiscal 2024 revenue of $1.29 billion to below $1.31 billion, below analysts’ expectations. Bill shares declined 5.5%.
Ross Stores (ROST) - The discount retailer, posted better-than-expected second-quarter earnings and raised guidance. The stock was up 4.7%.
Bloomin’ Brands (BLMN) - Bloomin’ Brands, which operates Outback Steakhouse, was rising 6.6% in premarket trading. Starboard Value has built a stake of more than 5% in Bloomin’ Brands, making it one of the company’s top-five shareholders, The Wall Street Journal reported, citing people familiar with the matter.
Deere (DE) - Deere reporte fiscal third-quarter earnings that topped analysts’ estimates. Guidance for the full year from the farm equipment maker also topped Wall Street expectations. Shares fell 2.1%.
Palo Alto Networks (PANW) - Palo Alto Networks has taken the unusual step of scheduling its quarterly earnings release for after the close of trading Friday. As Eric Savitz of Barron’s noted, companies rarely announce earnings, or any other significant financial news, on Friday afternoons, especially during the summer. That’s leading investors to believe Palo Alto will deliver news that shareholders may not like. The stock was down 1.9% in premarket trading.
Market News
Traders Brace for Explosion of Volatility Friday As $2.2 Trillion in Stock Options Expire
It’s that time again: monthly stock-market options for August are set to expire on Friday, potentially spurring more volatility in stocks after a bruising three-week run.
U.S. stock option contracts with a notional value of $2.2 trillion are set to expire, according to Rocky Fishman, founder of newly formed strategy firm Asym 500 and a former head of index derivatives strategy at Goldman Sachs Group. Notional value measures the market value of the stocks, indexes and exchange-traded funds controlled by the options, although the premiums paid by holders of the options are worth much less.
Bitcoin Drops to New Two-Month Low As World Markets Sell off
Top cryptocurrency bitcoin hit a fresh two-month low on Friday, breaking out of its recent tight range, as a wave of risk off sentiment grips world markets.
On Thursday, bitcoin fell 7.2% in its biggest one-day drop since November 2022 when top exchange FTX collapsed.
It then slipped to a two-month low of $26,172 during Asian trading hours on Friday, its lowest since June 16 .
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