Pre-Bell|U.S. Futures Edge Higher; Regional Bank Stocks Shine
U.S. stock index futures edged higher on Wednesday as top lawmakers inched closer to a deal to avert a debt default, ahead of Target's quarterly results that will be gauged for any further clues of softer consumer spending.
Market Snapshot
At 7:50 a.m. ET, Dow e-minis were up 122 points, or 0.37%, S&P 500 e-minis were up 13.5 points, or 0.33%, and Nasdaq 100 e-minis were up 28 points, or 0.21%.
Pre-Market Movers
Tesla (TSLA) - Tesla was rising 1.6% in premarket trading after CEO Elon Musk told shareholders at the electric-vehicle maker’s annual meeting the company would try running some advertisements. Musk had said in the past that Tesla didn’t need to advertise as demand always exceeded supply. Musk also said he planned to remain as the company’s chief executive, and teased two new Tesla models.
U.S. electric vehicle maker Tesla is revisiting plans to manufacture its vehicles in India, CNBC-TV18 reported on Wednesday, citing sources, after company officials met Indian government officials in New Delhi.
Target (TGT) - Target reported first-quarter adjusted earnings of $2.05 a share, beating Wall Street estimates of $1.77. Same-store sales in the period also beat estimates, rising 0.7%. Shares waved in premarket trading.
Doximity (DOCS) - The online medical platform provider, said it expects fiscal first-quarter revenue of $106.5 million to $107.5 million, below analysts’ forecasts, and the stock was falling 9.6% in premarket trading.
Western Alliance Bancorp. (WAL) - Western Alliance was rising 11% after disclosing that quarter-to-date deposits exceeded $2 billion as of May 12. That’s up from $1.8 billion in deposit growth as of May 9. Deposit levels at regional banks have been under market scrutiny in the past few months following the collapse of Silicon Valley Bank. PacWest (PACW) shares also jumped 11%.
EVgo (EVGO) - EVgo was falling 9.6% in premarket trading to $5.24 after saying it has begun an underwritten public offering of $125 million of Class A common stock.
Manchester United (MANU) - Manchester United stock rose 7% in premarket trading following the latest development in the takeover battle for the iconic English football club. Sheikh Jassim Bin Hamad Al Thani has made an improved bid for Manchester United. As before, the bid is for 100% of the club, will clear Manchester United’s debt and includes a separate fund directed solely at the club and community.
Wynn Resorts (WYNN) - Wynn Resorts was rising 2.7% to $105.86 after shares of the casino company were upgraded to Overweight from Equal Weight at Barclays, and the price target was raised to $135 from $120.
Keysight Technologies (KEYS) - The electronic systems company, was poised to rise after fiscal second-quarter earnings beat Wall Street expectations and the company’s adjusted profit forecast for the current quarter of $2 to $2.06 a share also topped estimates. The stock rose 8.5%.
Kyndryl Holdings (KD) - The IBM spinoff that runs IT data centers and provides other related services for large technology buyers, said it expects fiscal 2024 revenue to fall 6% to 8%, which implies revenue of $16 billion to $16.4 billion, which is below analysts’ expectations.
Market News
Biden, McCarthy Hopeful on Debt Ceiling Deal, US President Cuts Asia Trip Short
Democratic President Joe Biden and top congressional Republican Kevin McCarthy edged closer to a deal to avoid a looming U.S. debt default Tuesday, as the threat of an economic nightmare prompted Biden to cut short an Asia trip this week.
After an hour of talks, McCarthy, the speaker of the House of Representatives, told reporters the two sides remained far apart on an agreement to lift the debt ceiling. But he said, "It is possible to get a deal by the end of the week. It's not that difficult to get to an agreement."
Democrats were not as positive about a quick time frame, but the White House called the meetings "productive and direct."
Elon Musk Reverses Course and Says Tesla Will Advertise Its Cars
Tesla Inc boss Elon Musk, who has never used traditional advertising to sell cars, said on Tuesday that the automaker would try it and see whether it produced results.
Musk said it was "ironic" that as CEO of Tesla, he now owns Twitter. The social media platform is highly dependent on ads and will soon be led by advertising veteran Linda Yaccarino, who he hired last week.
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