Stock futures slid Wednesday, with traders fretting over the possibility of a recession as the Federal Reserve could raise rates for longer than expected.
Futures tied to the Dow Jones Industrial Average were down 142 points, or 0.4%, while S&P 500 futures lost 0.6% and Nasdaq 100 futures traded lower by 1.1%.
Wall Street is coming off another tough session, with the Dow falling more than 350 points, or 1.03%. The S&P 500 and Nasdaq Composite lost 1.4% and 2%, respectively.
Investors have been losing hope that the Fed will be able to engineer a so-called soft landing that successfully tamps down inflation through higher rates and also avoids a recession. Instead, concerns are swirling around the state of the economy and the likelihood of a downturn in 2023.
“All told, financial indicators point to a recession on the horizon,” wrote Wells Fargo’s Azhar Iqbal in a note to clients Wednesday. “The S&P 500 has peaked ahead of recessions with an average lead time of four months over the past few business cycles. Taken together with the inverted yield curve, markets are clearly braced for a recession in 2023.”
Investors await more economic data this week for clues on what to expect from the Fed. Mortgage loan application data showed a decline last week despite a fall in rates.
The tail end of earnings season continued with a solid report from Campbell Soup.
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THIS MORNING’S STOCK NEWS MOVERS:
Campbell Soup (CPB) – Campbell Soup beat estimates by 14 cents with adjusted quarterly earnings of $1.02 per share. Revenue also beat consensus and the food producer said its results were helped by strong pricing, improved productivity and supply chain improvements. Campbell Soup rose 1.2% in the premarket.
STOCK SYMBOL: CPB
Pinterest (PINS) – Pinterest rose 1.2% in premarket trading after an official from activist investor Elliott Management was added to the image-sharing website operator’s board of directors. Senior portfolio manager Marc Steinberg will become Pinterest’s eleventh board member, and the company agreed to renominate him for a new three-year term at next year’s annual meeting.
STOCK SYMBOL: PINS
Toll Brothers (TOL) – Toll Brothers beat top and bottom line estimates for its latest quarter, with results helped by strong pricing for the luxury home builder. Toll Brothers added 1.2% in the premarket.
STOCK SYMBOL: TOL
Thor Industries (THO) – The recreational vehicle maker reported a quarterly profit of $2.53 per share, well above the $1.81 consensus estimate, with revenue also topping Wall Street forecasts. Thor said its business performed “exceedingly well” during the quarter given ongoing macroeconomic headwinds.
STOCK SYMBOL: THO
Lowe’s (LOW) – The home improvement retailer announced a new $15 billion share repurchase program and reaffirmed its full-year forecast. The actions come ahead of the company’s annual analyst and investor conference today.
STOCK SYMBOL: LOW
Carvana (CVNA) – Carvana creditors, including Apollo Global Management and Pimco, signed a cooperation agreement and will work together as the online used car seller goes through a debt restructuring process. Carvana tumbled 18.2% in premarket trading.
STOCK SYMBOL: CVNA
MongoDB (MDB) – MongoDB shares soared 26.6% in premarket trading after the database software company reported a surprise quarterly profit and forecast another profit for the current quarter.
STOCK SYMBOL: MDB
Dave & Buster’s (PLAY) – Dave & Buster’s shares slid 3.9% in premarket action even though its quarterly profit matched analyst estimates. The restaurant and entertainment venue’s revenue beat consensus.
STOCK SYMBOL: PLAY
Stitch Fix (SFIX) – Stitch Fix shares fell 2.2% in the premarket after the online clothing company trimmed its full-year forecast amid a further decline in the number of active clients.
STOCK SYMBOL: SFIX
Airbnb (ABNB) – Airbnb fell 3.8% in premarket trading after Morgan Stanley downgraded the stock to underweight from equal-weight. Morgan Stanley pointed to slowing growth in listings and lower room night demand.
STOCK SYMBOL: ABNB
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?
I hope you all have an excellent trading day ahead today on this Wednesday, December 7th, 2022! 🙂
