Business

What to Watch Today: Nasdaq Futures Slide After Tech-Heavy Index Sank More Than 2%

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BY THE NUMBERS

U.S. stock futures fell Wednesday, one day after the Nasdaq dropped 2.4% as Snap's 43% slide on a profit warning dragged many other tech stocks lower. The Nasdaq's bear market Tuesday was just shy of a 30% decline from its most recent high. (CNBC)

The S&P 500 retreated 0.8%, breaking a two-session winning streak, but was still above the bear market level of down 20% or more from a prior high. The Dow managed a small gain for its third straight positive session. But the 30-stock average remained in a steep correction as defined by a decline of 10% or more from its most recent high. (CNBC)

Bond prices of late have been the recipient of the sell-off in stocks. The 10-year Treasury yield, which moves inversely to price, dipped to around 2.7% on Wednesday, ahead of the afternoon release of the minutes from the Federal Reserve's May policy meeting. (CNBC)

Even as the 10-year yield recently backed off late 2018 highs above 3%, it's still more than double the December low, taking mortgage rates higher and cooling demand for home loans. Applications to purchase a home were flat week to week and down 16% from a year ago. Refis dropped 2% and were 75% lower than the same week one year ago. (CNBC)

IN THE NEWS TODAY

Dick's Sporting Goods (DKS) shares sank more than 11% in Wednesday's premarket, shortly after cutting its financial forecast for the full fiscal year, citing sky-high inflation and ongoing supply chain challenges. The sporting goods chain did beat expectations on quarterly earnings and revenue as shoppers spent money on golf clubs, soccer gear and athletic apparel. (CNBC)

In contrast to the inflation-driven troubles at other retailers, Nordstrom (JWN) gained nearly 6% in premarket trading, though off overnight highs. The high-end department store chain after the closing bell Tuesday raised its annual sales and profit forecast. While posting a slightly wider-than-expected loss for its fiscal first quarter, Nordstrom saw sales surge 18.7% and exceed pre-pandemic levels. (CNBC)

Wendy's (WEN) shares gained roughly 9% in the premarket after it became known late Tuesday in a filing that the fast-food chain's largest shareholder, Trian Partners, is exploring a potential deal for the company. The hedge fund, founded and run by Nelson Peltz, currently owns a 19.4% stake in Wendy's. Trian holds three board seats at the fast-food company, including one held by Peltz, the chairman. (CNBC)

Federal plans to inspect a baby formula factory linked to the nationwide shortage were slowed by COVID-19, scheduling conflicts and other logistical problems, according to prepared testimony from the head of the FDA for a House panel hearing Wednesday. (AP)

* FTC launches investigation into infant formula makers over shortage (CNBC)

Pfizer's (PFE) CEO said Wednesday he "wouldn't worry much" about a recent monkeypox outbreak that's seen cases surge in non-endemic countries. Albert Bourla told CNBC that current data on the disease suggests it doesn't transmit as easily as other viruses, such as Covid, and it's unlikely to lead to a pandemic. (CNBC)

At least 19 children and two teachers were killed Tuesday in a shooting at a Texas elementary school. The suspected gunman was also killed when confronted by law enforcement. Before driving toward the school, the suspect shot his grandmother, who was hospitalized in critical condition. (CNBC)

President Joe Biden on Wednesday plans to sign an executive order on policing reform Wednesday, two years since George Floyd's death. The president is expected to appear alongside relatives of Floyd, whose killing by Minneapolis police sparked nationwide protests. (AP)

Georgia's Republican Gov. Brian Kemp was projected to win his party's nomination for reelection, batting away a primary challenge from ex-President Donald Trump's preferred candidate, former Sen. David Perdue. Kemp will face Democrat Stacey Abrams in a rematch of the gubernatorial contest she narrowly lost to him in 2018.

* Georgia secretary of State projected to beat Trump-backed primary challenger (CNBC)
* Trump-endorsed Herschel Walker wins Georgia GOP Senate primary (CNBC)

STOCKS TO WATCH

Express (EXPR) jumped 11.8% in premarket trading after reporting quarterly results that were better than expected. Express lost an adjusted 10 cents per share, narrower than the 15-cent loss anticipated by analysts, and revenue topped forecasts as well. Express also raised its full-year outlook for comparable-store sales.

Dell Technologies (DELL) added 1% in premarket trading after Evercore added the information technology company to its "Tactical Outperform" list. Evercore believes IT demand trends remain strong enough to lead to an earnings beat and a raised outlook when Dell reports quarterly earnings Thursday.

Lyft (LYFT) plans to cut budgets and slow hiring, moves similar to those recently announced by ride-sharing rival Uber Technologies (UBER). Lyft shares are down more than 60% this year, including a more than 17% tumble Tuesday.

Intuit (INTU) shares rose 2.5% in premarket trading after reporting better-than-expected quarterly profit and revenue. The financial software company also raised its current-quarter outlook on improvement in its QuickBooks business and the addition of recently acquired email marketing firm Mailchimp.

Toll Brothers (TOL) rallied 3.5% in premarket action after the luxury home builder beat top and bottom-line estimates for its latest quarter. Toll Brothers said that while demand was still solid, it has moderated amid higher mortgage rates and changing macroeconomic conditions.

Urban Outfitters (URBN) fell 1.6% in premarket trading after first-quarter results that fell shy of analyst forecasts on both the top and bottom lines. Like other retailers, Urban Outfitters highlighted the negative impact of inflation on its operations including higher costs for raw materials and transportation.

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