Good morning traders and investors of the r/stocks sub! Welcome to Tuesday! Here are your pre-market stock movers & news on this Tuesday, July the 12th, 2022-
Stock futures fall as growth concerns linger, dollar surges
U.S. stock futures fell Tuesday as worries over global economic growth dented investor appetite for risk assets. Wall Street also looked ahead to the start of what could be a difficult earnings season.
Dow Jones Industrial Average futures slipped by 221 points, or 0.71%. S&P 500 dipped 0.43% and Nasdaq 100 futures rose 0.07%.
Investors appeared to be shunning riskier assets such as stocks in favor of traditional safe havens such as U.S. Treasurys and the dollar. The 10-year Treasury yield fell 7 basis points to 2.92%.
The dollar index, which measures the U.S. currency’s performance against six other currencies, popped 0.5% to 108.51. That gain put the euro on the brink of parity with the dollar, as recession fears grow in Europe.
The dollar index has been on fire this year, rising 13% in that time. Several Wall Street strategists have warned that this strength in the U.S. currency could spell trouble for corporate earnings ahead.
“The surging USD is a symptom of global unease and will make life even more difficult for Corporate America (the EPS headwind from FX is going to be enormous) and int’l central banks (as the slumping EUR, GBP, etc., adds to the inflationary pressures in the EU and UK),” wrote Adam Crisafulli of Vital Knowledge.
PepsiCo kicked off the corporate earnings season Tuesday morning, with the snacks and beverages giant reporting a better-than-expected quarterly profit and revenue. The company also raised its revenue outlook for the year. Delta Air Lines and JPMorgan Chase are among the companies slated to report later this week.
Market participants will watch for downside risk to earnings forecasts as companies grapple with rising interest rates and greater inflationary pressures, and as Wall Street debates the likelihood of a recession.
“In terms of S&P earnings, for instance, we think we’re already moving towards an earnings recession,” Marathon Asset Management’s Bruce Richards said Monday on CNBC’s “Closing Bell.”
“Companies are getting squeezed at all sides, they’re getting squeezed on cost of goods and the wages and all things that go into input from our manufacturing goals or services. And on the other end, we think revenues are starting to flatten before turning down at a time when interest cost is going up. …That’s a lot of downgrades, a lot of potential defaults coming from the system as a result of higher charges.”
Inflation is also on investors’ radars this week with June’s consumer price index report set for release Wednesday. The headline inflation number, including food and energy, is expected to rise to 8.8% from May’s level of 8.6%, according to estimates from Dow Jones.
Wall Street was coming off a downbeat session in which the Dow, S&P 500 and Nasdaq all fell.
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)
PepsiCo (PEP) – The beverage and snack giant reported an adjusted quarterly profit of $1.86 per share, 12 cents above estimates, and revenue topped Wall Street forecasts. The company also raised its full-year forecast as consumer demand holds up even as prices rise. PepsiCo gained 1.2% in the premarket.
STOCK SYMBOL: PEP
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Gap (GPS) – The apparel retailer’s stock slumped 6.3% in the premarket after CEO Sonia Syngal stepped down after two years on the job. She’ll be replaced on an interim basis by executive chairman and former Walmart executive Bob Martin.
STOCK SYMBOL: GPS
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Peloton (PTON) – The fitness equipment maker announced it will fully transition to third-party manufacturing, expanding its partnership with Taiwan-based manufacturer Rexon Industrial. Peloton fell 1.8% in premarket trading before erasing those losses and going positive.
STOCK SYMBOL: PTON
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Twitter (TWTR) – Twitter sent a letter to Elon Musk saying it did not breach any of its obligations under their takeover agreement and that his effort to back out of the deal was “invalid and wrongful.” Twitter shares have fallen 15.8% over the past 2 trading days.
STOCK SYMBOL: TWTR
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Dave & Buster’s (PLAY) – The entertainment-themed restaurant chain announced a series of new executive appointments, including the appointment of a new chief operating officer. The changes take effect August 1, and the stock gained 1.7% in the premarket.
STOCK SYMBOL: PLAY
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PriceSmart (PSMT) – The discount retailer’s shares slid 4.2% in premarket trading after it reported lower-than-expected earnings despite sales that exceeded analyst estimates. PriceSmart was impacted by supply chain disruptions and excess inventory levels prompted by shifts in consumer demand.
STOCK SYMBOL: PSMT
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Canoo (GOEV) – The electric vehicle maker’s stock soared 73.4% in the premarket after it struck a deal to sell 4,500 delivery vehicles to Walmart (WMT) for an undisclosed amount. Walmart also has an option to purchase up to 10,000 units.
STOCK SYMBOL: GOEV
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Lennar (LEN) – The home builder’s shares fell 1.7% in premarket trading after J.P. Morgan Securities downgraded the stock to “neutral” from “overweight” as the industry faces a number of headwinds, including softening sales and higher incentives.
STOCK SYMBOL: LEN
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American Express (AXP) – American Express shares fell 2.6% in premarket action after Morgan Stanley downgraded the financial services giant to “equal-weight” from “overweight.” The firm said the risk of recession is not fully priced into American Express’ stock.
STOCK SYMBOL: AXP
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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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