Monday, September 26

Wall Street in a holding pattern ahead of key inflation report


BY THE NUMBERS

US stock futures turned sharply lower after Friday’s before-the-bell inflation report showed a bigger-than-expected increase. On the data, the 10-year Treasury yield initially jumped to more than 3.08%. Rising bond yields Thursday slammed stocks as the Dow Jones Industrial Average fell 638 points or nearly 2%. The S&P 500 and the Nasdaq lost roughly 2.4% and 2.8%, respectively. (CNBC)

May’s consumer price index increased 8.6% year-over-year, the fastest advance in more than 40 years. On a monthly basis, headline CPI was up 1%, also higher than expected. The Federal Reserve is expected to raise interest rates by a half-point next week and another half-point in July. But after that, the pace to fight four-decade high inflation is less clear. (CNBC)

The national average price for a gallon of gas, according to AAA, keeps inching up, now just 1 cent shy of $5, as oil prices continue to head higher. West Texas Intermediate crude, the American benchmark, rose Friday, trading at more than $122 per barrel. (CNBC)

Those gains were, however, capped as traders worried that new lockdown measures in Shanghai for mass Covid testing might outweigh solid oil and gas consumption for the world’s top consumer, the United States. But for the time being, peak summer driving demand in the US was increasing crude prices. (CNBC)

IN THE NEWS TODAY

Netflix (NFLX) slid 4.7% in premarket trading after Goldman Sachs downgraded the stock to sell from neutral and cut the price target to $186 per share from $265. In the same report, Goldman also cut to sell from “neutral” video game company Roblox (RBLX), down 4.7% in the premarket, and eBay (EBAY), down 3.6%. (CNBC Pro)

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DocuSign (DOCU) sank 25% in the premarket. The electronic signature software vendor’s weaker-than-expected earnings for its fiscal first quarter overshadowed a revenue beat. The company said it won’t be reducing headcount, but it is lowering the number of people it plans to hire. (CNBC)

Stitch Fix (SFIX) plummeted roughly 14% in before-the-bell trading. The online personalized styling platform confirmed planned layoffs of 15% of salaried positions within its workforce as it reported disappointing quarterly results and warned about the current quarter. (CNBC)

The House select committee investigating the Jan. 6 Capitol riot began laying out its initial findings Thursday night in the first in a series of public hearings. The panel said the assault was not spontaneous, calling it an “attempted coup” and a direct result of then-defeated President Donald Trump’s effort to overturn the 2020 election. (AP)

Trump, in a social media message after the hearing, criticized the committee for not showing “the many positive witnesses and statements” and playing “only negative footage.” More hearings are set to take place over the next few weeks. (CNBC)

STOCKS-TO-WATCH

Vail Resorts (MTN) rallied 6.7% in premarket trading after the resort operator posted better-than-expected quarterly results. Vail benefited from an easing of Covid-related restrictions and noted successful efforts to attract visitors outside of its peak skiing season.

Rent The Runway (RENT) posted a smaller-than-expected quarterly loss while its revenue came in above Wall Street forecasts. Sales doubled from a year earlier. The fashion rental company also issued an upbeat current-quarter revenue forecast. Shares jumped 8.2% in the premarket.

Maker of gene-based therapies Illumina (ILMN) saw its shares decline 4.2% in the premarket after announcing the departure of Chief Financial Officer Sam Samad, who is taking the CFO role at Quest Diagnostics (DGX).

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Angi (ANGI) reported a 24% jump in May revenue, compared with a year earlier, even as service requests fell 7%. Separately, the home services company announced the departure of Chief Financial Officer Jeff Pederson.

CME Group (CME) gained 2.3% in the premarket after Atlantic Equities upgraded the exchange operator to overweight from neutral. The firm said CME has the strongest fundamental backdrop among US-based exchanges and that a recent drop in the stock provides an attractive entry point.


www.cnbc.com

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