Dow Jones futures were little changed, along with S&P 500 futures and Nasdaq futures, while Treasury yields retreated. Futures gave up slim gains after the final first-quarter GDP revision.
General Mills (GIS) rose on strong earnings, working on possible buy points. Bed Bath & Beyond (BBBY) plunged on a big quarterly losses and as the housewares retailer and one-time “meme” stock ousted its CEO.
FedEx unveiled long-term financial targets ahead of an investor day. FDX stock rose slightly.
China EV maker Nio (NIO) skidded as it refuted a short-seller report. Tesla (TSLA) fell as it cut Autopilot jobs. Nio and Tesla will report sales late this week, along with Xpeng (XPEV), Li Auto (LI) and BYD (BYDDF).
Upstart Holdings (UPST) and Carnival Corp. (CCL) tumbled on major price target cuts from Morgan Stanley.
Dow Jones Futures Today
Dow Jones futures rose 0.1% vs. fair value. S&P 500 futures edged lower. Nasdaq 100 futures fell 0.15%.
First-quarter GDP fell at a 1.6% annual rate vs. the prior revision of a 1.5% decline. Analysts expected a 1.4% drop. Notably, consumer spending growth was revised down to a lackluster 1.8% pace from 3.1%.
The 10-year Treasury yield sank to 3.16% from 3.21%.
Crude oil prices rose nearly 2%. OPEC+ meetings take place Thursday, but it’s unclear if the cartel will make any big supply moves that affect prices significantly.
Bitcoin slid to the $20,000 level. The Bitcoin price hit an 18-month low of around $17,800 on June 18, but rebounded above the $21,000 late last week.
Remember that premarket action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
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Stock Market Rally
The Dow Jones Industrial Average fell 1.6% in Tuesday’s stock market trading. The S&P 500 index skidded 2%, with ENPH stock among the worst performers. The Nasdaq composite sold off 3%. The small-cap Russell 2000 retreated 1.85%.
The Nasdaq plunged below below the lows of their Friday follow-through day. That’s a highly bearish signal. Research shows that there’s a 90% chance that the rally will ultimately fail when this happens. The rally is not officially over until the indexes undercut their recent lows.
The Dow Jones did not close below its follow-through day lows, but it isn’t far off.
Five Best Chinese Stocks To Watch Now
General Mills earnings rose 23% to $1.12 a share. Revenue climbed 8% to $4.89 billion. Both beat analysts’ Q4 views. The cereal giant also raised its quarterly dividend by 3 cents to 54 cents a share.
GIS stock rose nearly 3% to 72.27, working on a 74.09 buy point from a cup base, according to MarketSmith analysis. General Mills stock is rebounding from near its 50-day line. A move above Tuesday’s intraday high of 71.71 would offer an early entry.
The relative strength line for GIS stock are right at a record high.
Bed Bath & Beyond Earnings
Bed Bath & Beyond reported a first-quarter loss that was much worse than expected. Revenue tumbled 25% to $1.46 billion, also missing.
Mark Tritton stepped down as CEO and from the board of directors. Sue Gove, board member, is interim CEO.
BBBY stock dived 14% to a fresh two-year low.
The shipping giant, ahead of Wednesday’s investor day event, sees annual EPS growth of 14%-19% through fiscal 2025, with a 10% consolidated operating margin.
It pledged an adjusted dividend payout ratio of at least 25%
FDX stock rose more than 1% before the open. Shares popped above the 200-day moving average last week after reporting better-than-expected earnings.
Big Price Target Cuts
Morgan Stanley downgraded Upstart stock to underweight and cut its price target all the way to 19 from 88. UPST stock plunged 11% to 31.91.
Morgan Stanley also cut its Carnival stock price target to 7 from 13, while also introducing a $0 bear case. CCL stock skidded 9% to 9.41.
Tesla Autopilot Cuts
Tesla is closing a San Mateo, Calif., office, eliminating 200 low-level positions from its Autopilot team. The EV giant is making sweeping layoffs as CEO Elon Musk fears a recession.
Tesla stock fell 1% before the open. On Tuesday, Tesla stock fell 5% to 697.99, back below its 21-day line.
In early July, perhaps Saturday, Tesla will release Q2 global production and delivery figures. Expected a substantial decline vs. Q1, due to the Shanghai plant shutdown and slow recovery due to China’s Covid lockdowns.
Tesla Vs. BYD: Which EV Giant Is The Better Buy?
Nio Refutes Short Seller Report
Nio said a Tuesday report by short-seller Grizzly Research “is without merit and contains numerous errors, unsupported speculations and misleading conclusions and interpretations.”
Grizzly accused Nio of accounting fraud to inflate revenue and net income margins.
Nio stock sank 7%.
Nio will release June sales on Friday, along with fellow China EV startups Li Auto and Xpeng. EV and battery giant BYD will likely release June sales on Saturday and Sunday.
Li Auto stock fell 2%, falling further below a buy point after a massive run-up.
XPEV stock lost 4%.
BYD stock was not yet trading. BYDDF rose 2.9% on Tuesday to 41.42, at the high end of a 5% chase zone from a 39.81 cup-with-handle buy point.
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