Good morning traders and investors of the r/stocks sub! Welcome to Tuesday! Here are your pre-market stock movers & news on this Tuesday, May the 24th, 2022-
Stock futures indicate the sell-off resuming on Wall Street after Monday’s brief rebound
Stock futures fell early Tuesday morning as the markets struggled to sustain a comeback rally following weeks of losses.
Futures on the Dow Jones Industrial Average fell 202 points, or 0.6%. S&P 500 futures dipped 1%, and Nasdaq 100 futures dropped 1.7%.
Snap shares plummeted more than 31% after the company said it’s bracing to miss earnings and revenue targets in the current quarter and warned of a hiring slowdown. Shares of Meta Platforms followed Snap lower, falling 7% in the premarket, while Pinterest lost 14%.
“Stocks are getting hit hard this morning and the main culprit is the Snap warning from Monday evening,” wrote Adam Crisafulli of Vital Knowledge. “Some are a bit incredulous that a relatively small and perennially unprofitable ephemeral social media firm can take down the whole tape, but given how sensitive this tape is, SNAP is able to punch above its weight.”
“Tech still dominates the market, both numerically (it remains the biggest weighting) and psychologically, and despite aggressive liquidation in the last couple of months, people still own a lot of it,” he added.
Shares of major tech companies reliant on advertising spend followed Snap lower. Alphabet slid 4%. Amazon fell 2% and Apple and Netflix were each down more than 1%.
“We expect all online ad platforms to feel some impact of a significant consumer pullback,” wrote Morgan Stanley analysts after the Snap warning. “Advertising is cyclical.”
Meanwhile, Zoom Video shares popped 6% after the company issued strong guidance for the second quarter.
Retail earnings continue this week and investors are eager to see how high inflation is affecting consumer demand, and if last week’s disappointments from big box retailers were company specific or reflections of the whole sector.
On Tuesday shares of apparel maker Abercrombie & Fitch dropped 10% premarket after reporting that freight and product costs weighed on sales for the fiscal first quarter. Best Buy shares initially popped after the company reported a mixed quarter, but reversed, and last traded 2% lower. Retailers were among the top gainers in the S&P 500 Monday.
The moves came a day after the market staged a rebound from last week’s steep market sell-off, which saw the Dow hit its first eight-week losing streak since 1923, and the S&P 500 briefly fall into bear market territory on an intraday basis.
Stocks rallied during Monday’s regular trading session as the Dow jumped 618 points, or nearly 2%, following a week of sharp losses. The S&P 500 rose 1.9%, and the Nasdaq Composite gained 1.6%. The moves left investors wondering whether the bounce can hold or if it was yet another minor relief rally amid the relentless sell-off that has yet to reach a bottom.
“This kind of environment where you’ve got the whipsaw and ups and downs that are so big is a trading environment where it can feel on any given day like you were wrong yesterday and that is ripe for mistakes,” Sofi’s head of investment strategy Liz Young told CNBC’s “Closing Bell: Overtime.”
Investors are looking ahead to new home sales and a speech from Fed Chair Jerome Powell at the National Center for American Indian Enterprise Development summit on Tuesday. Nordstrom and Ralph Lauren are also slated to report earnings.
STOCK FUTURES CURRENTLY:
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YESTERDAY'S MARKET MAP:
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TODAY'S MARKET MAP:
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YESTERDAY'S S&P SECTORS:
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TODAY'S S&P SECTORS:
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TODAY'S ECONOMIC CALENDAR:
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THIS WEEK'S ECONOMIC CALENDAR:
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THIS WEEK'S UPCOMING IPO'S:
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THIS WEEK'S EARNINGS CALENDAR:
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THIS MORNING'S PRE-MARKET EARNINGS CALENDAR:
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EARNINGS RELEASES BEFORE THE OPEN TODAY:
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EARNINGS RELEASES AFTER THE CLOSE TODAY:
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YESTERDAY'S ANALYST UPGRADES/DOWNGRADES:
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YESTERDAY'S INSIDER TRADING FILINGS:
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TODAY'S DIVIDEND CALENDAR:
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THIS MORNING'S MOST ACTIVE TRENDING TICKERS ON STOCKTWITS:
- LKNCY
- SNAP
- BBY
- ZM
- ANF
- FSR
- DOCN
- RL
- WOOF
- CSIQ
THIS MORNING'S STOCK NEWS MOVERS:
(source: cnbc.com)
Best Buy (BBY) – Best Buy jumped 5.2% in the premarket after the electronics retailer reported a mixed quarter. Best Buy fell 4 cents a share shy of forecasts, with quarterly earnings of $1.57 per share. Revenue was better than expected, however, and comparable-store sales did not fall as much as analysts had anticipated. Best Buy trimmed its full-year outlook based on worsening macroeconomic conditions.
STOCK SYMBOL: BBY
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AutoZone (AZO) – The auto parts retailer earned $29.03 per share for its fiscal third quarter, beating the consensus estimate of $26.05 a share. Revenue topped forecasts, and comparable-store sales posted an unexpected gain. Shares gained 1.4% in premarket trading.
STOCK SYMBOL: AZO
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Abercrombie & Fitch (ANF) – The apparel retailer’s stock plunged 17.7% in the premarket after the company reported an unexpected quarterly loss, despite better-than-expected revenue. Abercrombie was hit by higher costs, which it expects to remain a headwind for the rest of the year. The company also its full-year outlook.
STOCK SYMBOL: ANF
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Snap (SNAP) – Snap plummeted 28.8% in the premarket after the social media company issued a profit warning and said it would slow hiring. The Snapchat parent said it is dealing with a number of issues, including inflation, an uncertain economic environment and Apple’s (AAPL) privacy policy changes. Snap’s warning is weighing on other social media stocks like Meta Platforms (FB), which is down 6.5%, Twitter (TWTR), off 3.4%, and Pinterest (PINS), down 11.9%.
STOCK SYMBOL: SNAP
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Petco (WOOF) – Petco jumped 5.4% in premarket action after beating top- and bottom-line estimates for its latest quarter, as well as better-than-expected comparable-store sales for the pet products retailer.
STOCK SYMBOL: WOOF
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Zoom Video (ZM) – Zoom rose 4.7% in premarket trading after the videoconferencing company reported better-than-expected quarterly earnings and raised its profit outlook. Demand for Zoom’s flagship videoconferencing services is waning as people return to offices, but Zoom is shifting its emphasis to products aimed at the hybrid workplace.
STOCK SYMBOL: ZM
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VMWare (VMW) – Broadcom’s (AVGO) reported takeover talks with the cloud computing company are centered on a value of about $60 billion, or about $140 per share in cash and stock, according to people familiar with the matter who spoke to The Wall Street Journal. VMWare rose 1% in the premarket.
STOCK SYMBOL: VWM
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Insulet (PODD) – Insulet rallied 11.9% in premarket trading following a Bloomberg report that the medical device maker was in talks to be acquired by Dexcom (DXCM), a maker of glucose monitoring systems. Dexcom slid 7.1% in premarket action.
STOCK SYMBOL: PODD
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Advance Auto Parts (AAP) – Advance Auto shares sank 3.7% in premarket trading after the auto parts retailer reported quarterly profit and revenue that fell slightly short of Wall Street forecasts. The company also projected full-year comparable sales that are below consensus.
STOCK SYMBOL: AAP
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FULL DISCLOSURE:
/u/bigbear0083 has no positions in any stocks mentioned. Reddit, moderators, and the author do not advise making investment decisions based on discussion in these posts. Analysis is not subject to validation and users take action at their own risk.
DISCUSS!
What's on everyone's radar for today's trading day ahead here at r/stocks?
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