Watch us on YouTube Live at 8:30AM EST
Retail Stocks – Under pressure in early trading after a Q2 profit warning from Target Corp who said it now sees Q2 operating margin around 2% compared with prior forecast of 5.3%; also expects margins to be around 6% for the second half of the year. Other major retailers are also under pressure on the news with WMT, COST, JWN, BBY and Macy’s all falling more than 2%. Target says it would have to offer deeper discounts and stock more essential items over discretionary goods, as inflation reins in consumer spending. TGT, WMT, COST, JWN, BBY, M
Amazon Inc – Another round of analyst PT adjustments this morning after the stock began trading post 20:1 split yesterday. The stock has fallen 24% year-to-date, roughly comparable to the loss in the Nasdaq Composite .IXIC, as rising interest rates slam risk appetite and pressure shares of high-growth companies. While a split has no bearing on a company’s fundamentals, it could help buoy its share price by making it easier for a wider range of investors to own the stock, market participants said.
Apple Inc – Back on watch ahead of day 2 of the company’s WWDC today, yesterday we saw social media stocks move as the company did not mention any further privacy related changes to its app store. Apple also announced multiple new products and updates to existing ones. AFRM and Afterpay owner SQ shares tumbled meanwhile as AAPL announced its own version of the BNPL service. FB, SNAP, AFRM, SQ
Tesla Inc – Back to $700 premarket down more than 2% to start after CEO Elon Musk said Monday he might walk away from the $44 bln deal to buy Twitter if adequate data on spam and fake accounts was not provided. Analysts meanwhile are also awaiting more clarity on Tesla’s hiring plans, Musk said over the weekend the total headcount will increase over the next 12 months, but the number of salaried staff should be little changed, backtracking from an email just two days ago saying that job cuts of 10% were needed.
Gitlab Inc – Up sharply premarket after reporting a quarterly adjusted loss of 18 cents per share for the quarter ended in April. The mean expectation of ten analysts for the quarter was for a loss of 27 cents per share. Revenue was $87.41 million; analysts expected $77.70 million. GitLab Inc’s reported EPS for the quarter was a loss of 18 cents. The mean earnings estimate of analysts had risen by about 11% in the last three months.
Chinese ADRs – Back on watch active again premarket as a group after Monday’s rally. The gains followed news that Chinese regulators had concluded their review of DIDI Global and will also allow apps of Didi, Full Truck Alliance Co and Kanzhun Ltd back on Chinese app stores as early as this week. DIDI, YMM, NIO, XPEV, LI, BABA, JD, PDD
Novavax inc – Halted premarket up more than 3% as the company announced an FDA advisory committee is set to review Novavax’s covid-19 vaccine, the meeting is scheduled for 8:30 am ET on June 7.
BYND Cannasoft Enterprises – Low float cannabis industry focused software maker, Canadian based company was recently added to the Nasdaq. No significant news catalyst.