However, market optimism has been dampened by news of new Covid lockdowns in China, where officials continue to maintain their ‘zero Covid’ health policy. Dalian’s 5.9 million residents will not be able to move freely for the next three days, while Shenzhen residents will face strict rules for gathering and trafficking following new outbreaks of infections.
The reports kept global oil prices under pressure in overnight trading, with Brent crude oil contracts falling 40 cents a barrel to $104.72 and WTI futures falling 10 cents to $96.91.
The US dollar index was 0.32% lower against its global counterparts at 108,488, while benchmark yields on 2-year Treasuries remained at 3.417% in overnight trading.
In Europe, banking stocks drove modest gains for the region-wide Stoxx 600, which was up 0.76% in early trading in Frankfurt, while the MSCI ex-Japan index in Asia ended the session with a gain of 0.64%, even with the Covid-linked weakness in Chinese equities.
On Wall Street, futures linked to the S&P 500 point to a gain of 35 points on opening, while those on the Dow Jones Industrial Average are priced at a gain of 223 points. Futures linked to the tech-focused Nasdaq point to a 142 point gain.
2. — Bed, bath, and other spikes while Memers wait for strategy update
Bed, Bath & More
( stocks rose again in pre-market trading as the market’s favorite meme stock gained a foothold with retail investors ahead of the reversal update later in the week. BBBY)
The struggling homewares retailer, which reportedly secured about $375 million in loan financing last week, will inform investors on Wednesday about its turnaround plans, with a focus on both its short-term financing needs and the potential sale of its lucrative buy-buy Baby. -division.
Its share price was also disrupted last week by the sale of $9.45 million by activist investor Ryan Cohen, who dumped his entire stake in the group after just five months, earning about $60 million from the group’s investment. retail powered rally.
Bed, Bath & Beyond shares, which rose 24% Monday, were up 11.01% in pre-market trading to indicate an opening bell price of $14.76 apiece.
3. — Lucid Group Submits Plans to Raise $8 Billion in New Capital
( Shares plunged lower in pre-market trading after the luxury electric vehicle manufacturer unveiled plans to raise about $8 billion to increase its working capital. LCID)
Lucid, who earlier this month warned that supply chain disruptions would weigh on its full-year production forecasts, filed documents with the Securities and Exchange Commission for a so-called “mixed shelf” offering that would allow it to sell various forms of debt or equity securities. spending and market prices.
Luicd said in early August that it has about 37,000 pre-orders for its luxury EVs, representing about $3.3 billion in potential sales, but also burned more than $800 million in the last quarter as rising commodity prices and wails of the supply chain has forced it to halve its year-round production target, to a range of between 6,000 and 7,000 vehicles.
Lucid shares were 0.8% lower in pre-market trading to indicate an opening bell price of $16.07 apiece.
4. — Peloton Delays 10-K Submission Amid Complicated Restructuring
( shares rose in pre-market trading after the affiliate fitness group asked the Securities and Exchange Commission for more time to file its annual report. PTON)
Peloton said it will take additional time for its 10-K filing to correctly calculate the impairment charges related to its decision to relinquish the so-called “last mile” portion of its business to JB Hunt Transport.
( and XPO Logistics JBHT) (. XPO)
The move, which is part of broader turnaround plans under CEO Barry McCarthy, is expected to cut post-production delivery costs by about 50% when fully implemented, but is part of the $415 million in costs the group booked over the last three months of the fiscal year, which ended in July.
Peloton shares were marked 1.5% in pre-market trading to indicate an opening bell price of $10.63 apiece.
5. — Best Buy revenue in focus amid sales warnings, job cuts
( stocks fell lower in pre-market trading ahead of the electronics retailer’s first-quarter earnings before the opening bell. BBY)
Best Buy is expected to post net income of $1.27 per share for the three months ended July, its fiscal fourth quarter, on revenue of approximately $10.24 billion.
Those numbers will, however, be sharply lower than last year, amid a slump in consumer spending and inflated spending levels in the summer of 2021 related to post-pandemic stimulus payments.
Best Buy is also likely to inform investors about reports it cut hundreds of jobs earlier this month, just weeks after warning that same-store sales are likely to fall 13% from last year’s levels.
Best Buy shares were up 0.4% in pre-market trading to indicate an opening bell price of $74.00 apiece.