Good morning traders and investors of the r/stocks sub! Welcome to the new trading day and a fresh start! Here are your pre-market stock movers & news on this Tuesday, August the 22nd, 2023-
Stock futures are higher after Nasdaq’s best day in August: Live updates
U.S. stock futures rose Tuesday as Wall Street tried to build momentum following positive sessions for the Nasdaq Composite and S&P 500.
Futures tied to the Dow Jones Industrial Average climbed 109 points, or 0.3%. S&P 500 and Nasdaq 100 futures both added about 0.6% and 0.8%, respectively.
The Nasdaq Composite posted its biggest advance of the month during Monday’s main trading session, rising 1.6%. The S&P 500 added close to 0.7%. The two benchmarks snapped a four-day slide, and the Nasdaq notched its biggest one-day advance since August. The Dow ticked down 0.1%.
Notably, the broad market index and the tech-heavy Nasdaq were able to post gains even as the yield on the 10-year Treasury reached its highest level since November 2007, gaining about 9 basis points to trade at 4.34%. Tech shares historically struggle in a high-rate environment, making the tandem rise with yields on Monday more striking for Wall Street.
“We’re seeing a positive return in the stock market, [which] we didn’t see last week. We think rates are going to be higher for longer and maybe the stock market’s okay with it,” Katy Kaminski, chief market strategist at AlphaSimplex, told CNBC’s “Closing Bell.”
To be sure, some on Wall Street are not confident the rally can continue for much longer.
“Typically, spikes in Treasury yields expose other areas of weakness. The rise in yields will make debt refinancing even more burdensome. … Another reason yields are rising is that investors are beginning to get realistic on the Fed’s path (more rate hikes may come),” said Megan Horneman, chief investment officer at Verdence Capital Advisors.
“This is a risk to tech stocks and growth stocks with high PE multiples. Therefore, we expect additional downside in the equity market is likely,” Horneman continued.
Consumer retail giants Lowe’s and Macy’s reported quarterly earnings on Tuesday before the bell. Lowe’s gained 2.5% premarket after posting mixed results but reaffirming its full-year guidance, while Macy’s stock price edged lower on a cautious forecast for the full year.
Investors are keeping a close eye on Nvidia’s earnings due Wednesday. Its shares rose more than 8% Monday, making it one of the largest tech gainers. The company is largely seen as a bellwether on the AI-boom and sentiment.
On the economic data front, Wall Street will be looking toward the Philadelphia Fed’s nonmanufacturing survey, as well as the Richmond Fed’s manufacturing survey results. Existing home sales data for July is also scheduled for release Tuesday morning.
Traders are also anticipating Fed Chairman Jerome Powell’s remarks at Jackson Hole on Friday for more insight on the central bank’s inflation outlook.
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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THIS AFTERNOON'S AFTER-HOURS EARNINGS CALENDAR:
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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)
Fabrinet — Fabrinet surged 21% after its fiscal fourth-quarter results late Monday topped analysts’ estimates. The advanced manufacturing services company posted non-GAAP earnings of $1.86 per share, greater than the $1.80 earnings per share expected by analysts polled by FactSet. Revenue came in at $655.9 million, greater than the $641.4 million consensus estimate.
STOCK SYMBOL: FN
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Dick’s Sporting Goods — Shares plunged nearly 20% after the retailer reported an earnings miss and cut guidance for the year, due in part to an increase in retail theft. Earnings per share for its fiscal second quarter came in at $2.82, well below the $3.81 expected from analysts polled by Refinitiv. Revenue also fell short.
STOCK SYMBOL: DKS
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AppLovin — Shares climbed 4% in premarket trading after Jefferies upgraded the marketing stock to buy from hold. Jefferies said the company should continue to win market share and grow its software segment.
STOCK SYMBOL: APP
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Nordson — Shares fell 3% after Nordson reported fiscal third-quarter revenue that missed analysts’ expectations, and lowered its fiscal year earnings guidance. The adhesive dispensing equipment maker posted revenue of $648.7 million, lower than the $664.9 million expected by analysts polled by FactSet. It issued full-year earnings per share guidance of $8.90 to $9.05, lower than the prior guidance of $8.90 to $9.30, as well as the $9.06 per share consensus estimate on FactSet.
STOCK SYMBOL: NDSN
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Macy’s — The department store chain slid about 1.6% after reporting second-quarter earnings. Macy’s beat estimates on the top and bottom lines, but issued weak third-quarter guidance. The company reported per-share earnings of 26 cents, greater than the 14 cents earnings per share consensus estimate from FactSet. Revenue was $5.13 billion, higher than the $5.07 billion estimate. Macy’s issued third-quarter guidance in the range of 3-cents loss per share to 2-cents earnings per share, far below the 27-cent earnings per share estimate from FactSet. It guided for revenue from $4.75 billion to 4.85 billion, lower than the $4.86 billion expected by analysts.
STOCK SYMBOL: M
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Lowe’s — The stock gained about 2.4% after earnings beat second-quarter earnings expectations. The home improvement company reported $4.56 earnings per share, greater than the $4.47 expected by analysts polled by FactSet. However, revenue was slightly lower, at $24.96 billion instead of the $24.97 billion estimate. Lowe’s also reaffirmed fiscal year revenue expectations in the range of $87 billion to $89 billion, while analysts expected $87.98 billion, according to FactSet. Lowe’s CEO Marvin Ellison said, ”[We] remain confident in the mid- to long-term outlook for the home improvement industry.”
STOCK SYMBOL: LOW
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Zoom Video Communications — Shares of the video conferencing company rose just over 1% after Zoom’s second-quarter results topped expectations. The company reported $1.34 in adjusted earnings per share on $1.14 billion of revenue. Analysts were expecting $1.05 per share on $1.12 billion of revenue, according to Refinitiv. Zoom’s earnings guidance for the third quarter and the full year also topped expectations.
STOCK SYMBOL: ZM
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Emerson Electric — The stock rose 1.6% after JPMorgan on Tuesday upgraded the engineering company to overweight from neutral and raised its price target to $107 from $83. That implies roughly 13% upside from Monday’s close.
STOCK SYMBOL: EMR
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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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