Good morning traders and investors of the r/stocks sub! Welcome to Tuesday! Here are your pre-market stock movers & news on this Tuesday, June the 21st, 2022-
Dow futures surge 400 points as the market tries to recover from a brutal week
Stock futures rose in early morning trading Tuesday following a brutal week as investors assessed a more aggressive Federal Reserve and rising chances of a recession.
Futures on the Dow Jones Industrial Average jumped 404 points, or 1.4%. S&P 500 futures climbed 1.5%, and Nasdaq 100 futures popped 1.4%. U.S. stock markets were closed Monday for Juneteenth.
“There’s not a single reason for the bounce in equities, and the overwhelming view is dismissing the uptick as being nothing more than dead cat, something that should be faded just like all the other rally attempts lately. We push back a little bit on that view, largely because of an approaching inflation shift,” wrote Adam Crisafulli of Vital Knowledge.
Crisafulli noted that Brent crude was trading roughly $10 below a recent high, while President Joe Biden gets set for a trip to Saudi Arabia to discuss energy production. He also pointed out that iron ore and copper have fallen recently.
“If commodities can stay on a downward trajectory, it would remove a massive overhang from equity markets,” he said.
Brent crude futures traded 1.4% higher at $115.75 per barrel. West Texas Intermediate, the U.S. oil benchmark, gained 2.2% to $110.41 per barrel.
Major tech stocks that have been pummeled in recent trading rose in the premarket. Shares of Apple, Amazon, Google-parent Alphabet and Meta all climbed more than 1%.
Shares of Kellogg jumped more than 7% in premarket trading after the company said it would split into three separate companies. Separately, food company Mondelez increased 1.2% in premarket trading following news that it would acquire energy bar maker Clif Bar in a $2.9 billion transaction.
Airline stocks soared in premarket trading amid hopes of a summer travel boom. Shares of Spirit Airlines jumped more than 9% in premarket trading after JetBlue raised its takeover offer to $33.50 a share, even as Spirit deliberates a proposed merger with Frontier Group. JetBlue’s stock price jumped 1.8% in premarket trading.
Meanwhile, the yield on the benchmark 10-year Treasury note continued to march higher. Yields move inversely to prices.
The major averages suffered their 10th losing week in 11 last week on fears that the central bank will hike rates aggressively to tame inflation at the risk of causing an economic downturn. The S&P 500 dropped 5.8% last week for its biggest weekly loss since March 2020, dipping deeper into bear market territory. The equity benchmark is now more than 23% off its record high from early January.
The blue-chip Dow slid 4.8% last week, falling below 30,000 for the first time since January 2021 last week. The tech-heavy Nasdaq Composite slipped 4.8% last week, down 33% from its record high.
“The recent drop in equity markets and inflection in investor attitudes make a bottoming thesis more difficult to make,” said Nationwide’s chief of investment research, Mark Hackett. “Investors are acting emotionally, but the fundamentals are beginning to follow the weakness in the technicals.”
Fed Chair Jerome Powell will testify before Congress Wednesday and Thursday. His appearance comes after a recent rate hike by three-quarters of a percentage point, the central bank’s biggest increase since 1994.
Investors will monitor incoming data, including existing home sales on Tuesday, to gauge the health of the economy. Recent data showing low consumer confidence, falling retail spending and a cooling housing market have fueled recession fears as the Fed battles inflation at 41-year highs.
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 STOCK NEWS MOVERS:
(source: cnbc.com)
Kellogg (K) – Kellogg jumped 8.1% in premarket trading after announcing plans to split into three separate public companies. One entity will comprise the snack and international cereal businesses, another the U.S. cereal business and the third will be a pure-play plant-based food producer.
STOCK SYMBOL: K
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Lennar (LEN) – The home builder reported an adjusted quarterly profit of $4.69 per share, beating the $3.96 consensus estimate, with revenue that also topped forecasts. However, the company said it began to see the impact of higher interest rates and rapidly appreciating home prices toward the end of the quarter.
STOCK SYMBOL: LEN
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Spirit Airlines (SAVE) – Spirit rallied 8.1% in premarket trading after JetBlue (JBLU) increased its takeover offer for Spirit by $2 to $33.50 per share. Spirit plans to decide by the end of the month whether to stick with its deal to merge with Frontier Group (ULCC) or to accept JetBlue’s bid. JetBlue rose 1.6%.
STOCK SYMBOL: SAVE
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Mondelez (MDLZ) – Mondelez is buying energy bar maker Clif Bar & Co. for $2.9 billion with additional payouts possible depending on financial results. The transaction is expected to close during the third quarter.
STOCK SYMBOL: MDLZ
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Valneva (VALN) – Valneva shares soared 81.8% in the premarket after Pfizer (PFE) agreed to buy an 8.1% stake in the French vaccine maker for more than $95 million. Pfizer and Valneva are already joint venture partners in developing treatments for Lyme disease.
STOCK SYMBOL: VALN
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Tesla (TSLA) – Tesla added 3.2% in premarket action after CEO Elon Musk gave more details on the planned job cuts announced earlier this month. Musk told Bloomberg the company would cut salaried staff by about 10% over the next three months, resulting in an overall reduction of about 3.5%.
STOCK SYMBOL: TSLA
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Twitter (TWTR) – In the same Bloomberg interview, Musk said there are still some unresolved matters regarding his deal to buy Twitter, including information about spam accounts and finalizing the deal’s financing. Meanwhile, a new SEC filing from Twitter recommends shareholders vote in favor of Musk’s $54.20-per-share takeover bid. Twitter added 1.2% in the premarket.
STOCK SYMBOL: TWTR
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Exxon Mobil (XOM) – Exxon Mobil was upgraded to “outperform” from “neutral” at Credit Suisse, which pointed to Exxon’s investments in attractive oil and gas projects. Exxon Mobil added 2.6% in premarket action.
STOCK SYMBOL: XOM
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Sunrun (RUN) – The solar power company’s stock rose 2.5% in premarket trading after Goldman said Sunrun remained the best way to invest in residential solar growth. Goldman rates Sunrun “buy” while it downgraded rival SunPower (SPWR) to “sell” from “neutral.” SunPower slid 2.7%.
STOCK SYMBOL: RUN
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Charles Schwab (SCHW) – The brokerage firm was upgraded to “buy” from “neutral” at UBS, which called Schwab a quality name well insulated from credit and market risk. Schwab jumped 3.3% in premarket trading.
STOCK SYMBOL: SCHW
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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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