Premarket Winners and Losers
U.S. futures went up a little on Friday, which was a good way to end the week after the Federal Reserve said it would cut interest rates this year, possibly as early as June.
Top Gainers
FedEx (NYSE:FDX) stock went up 12% after the company reported better-than-expected earnings and agreed to buy back $5 billion worth of shares.
Top losers
The stock price of Lululemon Athletica (NASDAQ:LULU) dropped 13% after the athletic wear store said that its yearly sales and profits would be lower than expected because of lower demand for its high-end goods, mostly in North America.
The biggest clothing company in the world, Nike (NYSE:NKE), said that its sales would drop by low single-digit percentages in the first half of fiscal 2025. This caused Nike stock to drop 6.1%.
The stock price of Reddit (NYSE:RDDT) dropped 5.2% the day after the social media site had a great first day on the market.
Bloomberg reported that Tesla (NASDAQ:TSLA) has cut back on production in China because sales of electric vehicles are growing more slowly and there is more competition in the world’s biggest car market. This caused Tesla stock to drop 4.1%.
The stock price of Coinbase (NASDAQ:COIN) dropped 2.3%. This happened because Bitcoin, the most famous digital currency, fell below $65,000 and was getting close to the week’s low.
The stock price of Apple (NASDAQ:AAPL) dropped 0.2%, adding to the 4% drop seen the previous day after the Department of Justice announced its long-awaited case against the iPhone maker for trade violations.
Stocks in focus
Tesla stock fell over 3% after Bloomberg News reported that the company had decided to reduce electric car production at its Shanghai plant. Tesla asked employees to work five days a week instead of six and a half, reducing production of Model Y and Model 3 cars. EV sales are declining due to declining demand and rising competition from Chinese manufacturers.
JPMorgan upgraded Best Buy‘s stock rating to Overweight, citing consumer end-to-wallet pull-forward and deflationary headwinds in computers, televisions, and appliances. The brokerage believes Best Buy’s margin outlook is conservative, with long-term margins “well off their potential,” and its estimated 2024 price to earnings ratio is 6% below historical valuations.
Foot Locker (FL) rose over 4% after Citi upgraded its rating to Neutral from Sell, following Nike’s management’s emphasis on maintaining strong wholesale partners. Citi expects more high-heat Nike products to boost sales. FL’s recent quarterly results disappointed investors after the company’s loss. The move comes after Nike’s management emphasized the importance of strong wholesale partners.
Baidu’s shares rose over 4% in pre-market trading after Apple reported preliminary talks with the Chinese internet giant to use its AI technology in its devices. Apple is exploring using external partners to accelerate its AI goals. Baidu released five new versions of its AI model Ernie and an enhanced development toolkit for enterprises.
Must read book about investing – check here Baidu’s shares rose over 4% in pre-market trading after Apple reported preliminary talks with the Chinese internet giant to use its AI technology in its devices. Apple is exploring using external partners to accelerate its AI goals. Baidu released five new versions of its AI model Ernie and an enhanced development toolkit for enterprisesPremarket Winners and Losers Premarket Winners and LosersPremarket Winners Premarket Winners PPremarket Winnersremarket Winners Premarket Winners Premarket Winners Premarket Winners
3M (MMM) rose over 7% pre-market. The industrial conglomerate’s appointment of former L3Harris Technologies (LHX) CEO William Brown as its new CEO, starting May 1, appeared to please investors. Brown will succeed Michael Roman as 3M’s (MMM) executive chairman. Brown was Harris Corp’s CEO before its 2019 merger with L3 Technologies. After becoming CEO of the merged firm, he was executive chair from June 2019 until June 2022. Roman was 3M’s (MMM) CEO since July 2018.
Premarket Premarket Premarket Premarket Premarket Premarket Premarket