Premarket trade shows U.S. futures fell Tuesday ahead of labor market data as investors reduced their hopes of an early Fed rate decrease.
Top Gainers
Roivant Sciences (NASDAQ:ROIV) shares increased 7.2% after the company said that its investigational medicine to treat non-infectious uveitis reduced symptoms of the inflammatory eye illness in a mid-stage study.
DoorDash (NASDAQ:DASH) shares increased 0.4% after CFRA Research raised its investment position on the meal delivery platform to ‘buy’ from ‘hold’, noting its significant growth potential.
Top losers
Canoo (NASDAQ:GOEV) shares plunged 27% after the EV start-up’s revenue projection for 2024 underperformed, and management expressed “substantial doubt” about the company’s capacity to continue as a going concern.
PVH (NYSE:PVH) stock fell more than 22% premarket after the fashion retailer, which owns the Tommy Hilfiger and Calvin Klein brands, issued dismal full-year sales outlook, citing a challenging macroeconomic environment, particularly in Europe.
General Electric (NYSE:GE) stock fell 20% after the industrial conglomerate split into three companies. The aerospace and energy businesses will begin trading on the New York Stock Exchange as separate entities on Tuesday, more than a year after the healthcare business began trading on the Nasdaq.
UnitedHealth (NYSE:UNH) fell 4.2%, CVS Health (NYSE:CVS) fell more than 5%, and Humana (NYSE:HUM) fell 9.5% after the Centers for Medicare & Medicaid Services announced unchanged reimbursement rates for Medicare Advantage health plans, indicating that insurers’ margins will remain under pressure next year.
Nio (NYSE:NIO) ADRs fell 2.2% after Barclays reduced its rating on the Chinese EV maker to ‘underweight’ from ‘equal weight’, citing lower March sales.
Trump Media & Technology (NASDAQ:DJT) declined 2%, extending the previous session’s steep losses in which the company lost more than a fifth of its worth.
Walt Disney (NYSE:DIS) shares slipped 0.8%, as the entertainment behemoth seemed to edge over activist investors in the battle for board seats and the company’s future.
Stock in focus
PVH (PVH) shares fell 22% in pre-market trade after the garment retailer published below-expected quarterly and annual earnings forecasts. The parent company of Tommy Hilfiger and Calvin Klein expects Q1 2024 EPS of $2.15 and full-year EPS of $10.75 to $11.00, compared to projections of $2.50 and $11.90. PVH CEO Stefan Larsson said greater pricing increased Q4 2023 gross margins and cut inventories by 21% for the year.
PAYX stock fell more than 6% before the opening bell after the payroll and HR solutions company missed quarterly sales projections. The firm missed estimate by $20M on Q3 2024 sales growth of 4.3% to $1.44B. Paychex (PAYX) CEO John Gibson stated the company’s employee retention tax credit program contributed less to quarterly revenue growth. Gibson also reported moderate small company employment and salary growth in the quarter.
UnitedHealth (UNH) fell 5.1%, CVS Health (CVS) down 7.2%, and Humana (HUM) fell 11.1% before market open. As originally planned, the U.S. Centers for Medicare & Medicaid Services raised rates by 3.7% for 2025. Medicare Advantage payments will increase 3.7%, or $16B. Some investors expected a bigger increase.
After ChampionX (CHX) agreed to be bought by SLB (SLB) in an all-stock deal worth $7.8B, its shares rose more than 10%. ChampionX (CHX) stockholders will get 0.735 SLB (SLB) common stock per share under the acquisition. At agreement closure, ChampionX stockholders will control ~9% of SLB’s outstanding ordinary shares. SLB (SLB), previously Schlumberger, is the largest oilfield services and equipment company. Its shares fell 1.5%.
Must read book about investing – check here 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.