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Retail Stocks – Multiple additional downgrades and PT cuts in the group again after the past few days of destruction in the sector, KSS becomes the latest retailer to cut its full-year earnings forecast this morning, joining WMT TGT and others in the group. The company said it expects fiscal 2022 adjusted earnings of $6.45 to $6.85 per share, compared with its previous forecast of $7.00 to $7.50. Kohl’s forecast full-year net sales to rise only as much as 1%, compared with its previous forecast of a 2% to 3% increase. The company’s net sales fell 5.2% to $3.47 billion in the first quarter ended April 30. Analysts had expected $3.68 billion, according to Refinitiv data. WMT, TGT, M, HD are all lower again to start while BJ shares are higher after profit, revenue and same-store sales all beat expectations.
Big Tech – Remain on watch trading lower again and have now lost between 20.1% and 42.9% so far this year as a group. Technology-focused growth stocks have faced the brunt of the selloff this year, as their returns and valuations are discounted more deeply in a higher interest rate environment. AAPL, MSFT, FB, AMZN, GOOGL, AMD, NVDA
Tesla Inc – Back to the downside again this morning under $700 in early trading, yesterday the stocks fell on multiple negative catalysts. U.S. National Highway Traffic Safety Administration says it has opened a special investigation into a fatal Tesla crash this month in California that resulted in three deaths. The stocks was also removed from the S&P’s ESG Index sparking a series of angry tweets from CEO Elon Musk.
Cisco Systems – Cut its full-year earnings forecast on Wednesday after COVID lockdowns in China and the war in Ukraine dragged sales below estimates in the third quarter. It also said fourth-quarter revenue would decline by 1% to 5.5%, becoming the latest U.S. company to outline a hit from Beijing’s “Zero COVID” policy. Reported adjusted profit is estimated between $3.29 and $3.37 per share from $3.41 to $3.46 per share earlier. Reported third-quarter adjusted profit of 87 cents on revenue of $12.8 billion, compared with expectations of 86 cents on revenue of $13.87 billion, according to IBES data from Refinitiv.
Ford Motor Co – The automobile company said it was recalling 39,000 SUVs after reports of 16 fires, and has advised owners to park their vehicles outdoors and away from structures until a fix is completed. The recall, which covers some 2021 model year Ford Expedition and Lincoln Navigator vehicles, was prompted as an engine compartment fire could occur while the car is parked or being driven, even with the ignition off, the No. 2 U.S. automaker said. There was one injury but no accidents related to the fires, it said, and 14 of the 16 affected vehicles were owned by rental car companies. A remedy was still under development and Ford was working to establish the cause.
AMC Entertainment – Back on watch active premarket, yesterday the company revealed a passive 6.8% stake in National CineMedia sending its shares higher initially.
Lucid Group – Announced further plans to move forward with production in Saudi Arabia, the company’s new manufacturing facility will be able to produce 155,000 vehicles a year, and will initially serve the local market, the luxury car maker said in a press release. Including the 350,000 units a year that can be made in Lucid’s factory in Arizona, the company will be able to produce half a million cars a year by the middle of the decade, earlier than its previous target of 2030, said CEO Peter Rawlinson.
CBAK Energy – The lithium battery producer’s shares are higher after reporting better than expected quarterly results. Posted GAAP EPS of $0.01, revenue of $80.2M beating on both.
Indaptus Therapeutics – Announced FDA clearance of INDA to initiate phase 1 clinical trial of DECOY20 in solid tumors.