Nordstrom, Bed Bath & Beyond are among the largest premarket movers
People leave a Bed Bath & Beyond store amid the coronavirus disease (COVID-19) pandemic in New York on January 27, 2021.
Carlo Allegri | Reuters
Here are some of the biggest stocks making headlines in the premarket:
Nordstrom – Shares fell 13% after the luxury department store chain cut its full-year outlook, despite earnings reports that beat profit and revenue expectations.
Bed Bath & Beyond – Shares surged 33% following a Wall Street Journal report, citing people familiar with the matter, that said the troubled retailer had found a source of funding to boost its cash flow.
Advance Auto Parts — The stock fell 5.9% after Advanced Auto Parts reported disappointing earnings results, citing higher inflation and fuel costs, and cut its outlook.
Brinker International — Brinker International, the parent company behind restaurant owners Chili’s and Maggiano’s, fell 7.3% after reporting a revenue loss and a weaker-than-expected full-year outlook.
– Sarah Minn, Peter Shagno
Raymond James demoted Medtronic
Raymond James underperformed Medtronic shares on Wednesday. The company cited deteriorating confidence in the medical device maker’s growth potential among the reasons for the change in outlook.
The downgrade comes after the company beat analysts’ estimates in the latest quarter but showed a year-over-year decline in revenue due to supply chain issues.
CNBC Pro subscribers can Check out the full story here.
– Samantha Subin
The housing market is still under pressure, but there are some small signs of hope
Mortgage loan Demand fell again last weekBut there were few signs of a sharp decline in the housing market finding a floor.
According to the Mortgage Bankers Association, government mortgage applications actually rose 4% last week, showing some strength among first-time homebuyers, even as mortgage rates remained high.
On the corporate front, Dole Brothers shares fell 2.6% in premarket trading after third-quarter home sales came in lower than expected. But the company’s CEO said in August there were “signs of increased demand”.
Pending home sales data will be released at 10 AM
– Jesse Pound
Expect some market stability after Jackson Hole, Wells Fargo says
The market will find some stability after Fed Chairman Jerome Powell delivers his remarks in Jackson Hole, Wyoming on Friday, Wells Fargo’s Christopher Harvey said in a note on Wednesday.
“The Fed fears the crest and one (of both) recent rate drivers is expected to ease. Until then, interest rate trends and liquidity suggest some more ‘tapering’,” he said.
The market rallied after hitting lows in mid-June, but has recently struggled on renewed fears that the central bank will raise rates longer than expected.
“In our view, the Jackson Hole takeaway will be in the eye of the beholder: hawks will focus on hawk reports (and vice versa for doves),” Harvey said.
Time to buy the frontier, says Morgan Stanley
Morgan Stanley believes now is the time to buy Frontier’s stock.
Analyst Ravi Shankar resumed coverage of the budget airline with an overweight rating, calling the company an “excellent” ultra-low-cost carrier with its failed merger with Spirit behind it.
CNBC Pro subscribers can Read the full story here.
– Samantha Subin
The market’s traction continues, says BTIG’s Grinsky
BTIG chief market technologist Jonathan Grinsky said the market “continues to be in a tug-of-war between economic data and what the Fed might do.”
Recent economic data has been weaker than expected “which is causing a bid for bonds and the impression that Powell may be ‘less hawkish’ in Jackson Hole,” Krinsky noted. “That should be enough to keep equities in the bid … but it’s not necessarily a ‘bullish’ scenario in the medium term if the environment data continues to weaken.”
European markets were flat as global investors awaited the central bank
Morgan Stanley says the ‘smart’ EV is the next big thing in technology. Here are its top stock picks
Morgan Stanley says technology supply chains are poised to experience growth in the next big thing: smart technology features — from EV batteries to chips and self-driving technology.
The investment bank has named its top stock picks to benefit from the trend.
– Weissen Don
The central bank’s Kashkari says his biggest fear is that inflation will be more stable or warmer than expected.
Neil Kashkari, president of the Federal Reserve Bank of Minneapolis, said his biggest fear is that markets are underestimating how high or how persistent inflation will be, and that the central bank will need to be more aggressive than expected.
“The big fear that I have in the back of my mind is that if we’re wrong and the markets are wrong, this inflation is much more embedded than we appreciate or the markets appreciate,” he said. Inflation is expected to decline to 2% over the next two years.
“Then, to bring inflation back up, we will have to be more aggressive than I expect,” he said at an event at the University of Pennsylvania.
Kashkari pointed to supply-side shocks accounting for “half to two-thirds” of the country’s high inflation.
“The more support we get from the supply side, the less the central bank has to do and the more we can avoid a hard landing,” he said. However, he said there is some evidence that supply chains are beginning to normalize.
Kashkari is already considered the most dovish of the U.S. central bank’s 19 policymakers, and expects the central bank to raise its policy rate — now in the target range of 2.25% to 2.5% — by another two full percentage points by the end of next year.
– Jihye Lee
CNBC Pro: Citi names energy stock ‘strong balance sheet’
The energy sector has been a big hit in a volatile stock market this year.
According to Citi, the stock still stands out for its “strong balance sheet”. It delivered a set of second-quarter earnings that easily beat its major listed peers.
Pro subscribers can Read the story here.
– Javier Ong
A hawkish fed?
Many are expecting a hawkish speech from Fed officials later this week, which will sell off risk assets. Some fear that the central bank’s continued and aggressive tightening will push the slowing economy into recession.
“I fully expect Fed Chair Jay Powell and other central bank officials to remain hawkish,” Invesco chief global market strategist Christina Hooper said in an email. “Aggressive rhetoric should be prepared for short-term volatility as markets walk on eggshells.
– Yun Li
Nordstrom shares fell
Shares Nordstrom The company fell more than 13% in extended trading after the company Lowered full-year financial forecast. Nordstrom said it is being challenged by excess inventory and sluggish demand.
“Customer traffic and demand has decreased significantly since late June, mainly at Nordstrom Rack,” CEO Eric Nordstrom said in a press release.
However, the company reported fiscal second-quarter earnings and sales ahead of analysts’ estimates.
– Yun Li
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