S&P 500 futures are up 15 points, Nasdaq 100 futures have gained 60 points, while Dow Jones Industrial Average futures are down 38 points, showing mixed early trading.
Early gains in large-cap stocks are boosting the S&P 500 and Nasdaq 100, but the Dow futures remain slightly lower.
Market watchers are considering the news that President-elect Trump plans to impose high tariffs on imports from Canada, Mexico, and China.
Interest in the 10-year Treasury note, which reflects inflation changes, has decreased after the tariff announcement. The 10-year yield has risen to 4.28%, and the 2-year yield has decreased to 4.24%.
Retail earnings reports have led to mixed reactions. Kohl's (KSS, Financial) is down more than 16%, while Dick's Sporting Goods (DKS) has gained nearly 7% ahead of the market opening.
Today's News
Apple (AAPL, Financial) may face "incidental damage" from the Department of Justice's antitrust lawsuit against Google (GOOG, GOOGL), according to Barclays. While Apple is not directly involved, the outcome could impact its revenue model, particularly the payments Google makes for traffic acquisition, which is significant for Apple's operating income. Analyst Tim Long has expressed concerns about potential revenue and earnings impact, although he notes Apple could eventually compensate with its own ad stack.
Amgen (AMGN, Financial) reported promising Phase 2 trial results for its weight loss therapy, MariTide, which showed up to 20% weight loss in non-diabetic individuals and 17% in those with Type 2 diabetes over 52 weeks. Despite the positive data, shares fell 8% as investors reacted to the trial outcomes. The company is launching a Phase 3 program to further explore MariTide's potential, targeting gut hormone receptors for weight management.
Walmart (WMT, Financial) has decided to reduce its focus on diversity, equity, and inclusion initiatives, responding to external pressure. The retailer will stop using terms like "DEI" and "LatinX" and scale back racial equity training and diversity hiring guidelines. This move could influence other major corporations such as Amazon (AMZN, Financial) and Target (TGT, Financial), potentially reshaping corporate America's approach to these initiatives.
Zoom Communications (ZM, Financial) saw a 10% drop in premarket trading following disappointing quarterly results and guidance. Analyst Mark Murphy described the company's recovery pace as "muted," with expectations for revenue growth not aligning with investor hopes. The company's shares had previously outperformed the IGV index, raising expectations that were not met.
Wells Fargo (WFC, Financial) gained 2.5% in premarket trading amid reports that the asset cap restricting its growth since 2018 may be lifted by 2025. The cap was imposed due to past scandals involving unauthorized account openings. The bank is nearing the end of regulatory processes required to remove the $1.95 trillion cap.
Kohl's (KSS, Financial) shares fell over 16% after missing profit and sales estimates and lowering its full-year profit forecast. The retailer now expects a larger decline in sales and earnings per share than previously guided. The announcement followed the departure of CEO Tom Kingsbury, adding to investor concerns.
Best Buy (BBY, Financial) reported a 2.9% drop in comparable sales for the third quarter, leading to a more than 7% decrease in premarket trading. The retailer is offering deals and competitive fulfillment options to attract value-seeking consumers amid uneven customer behavior. CEO Corie Barry highlighted a pragmatic approach to balancing optimism with market challenges.
Abercrombie & Fitch (ANF, Financial) promoted Robert Ball to CFO, replacing the previous CFO, who moved to COO. Ball brings over two decades of experience in finance and strategy roles within the company. This leadership change comes as the company navigates its financial strategies and outlook.
GuruFocus Stock Analysis
- Kohl's Stock Crashes 17% as Weak Performance and CEO Shake-Up Rock Investor Confidence by Khac Phu Nguyen
- Zoom Rebrands Itself Remove the Word Video from Its Name by ShantiPutri
- Abercrombie's Record Quarter Stuns, But Wall Street Isn't Sold--What's Next by Khac Phu Nguyen
- Microsoft Resolves Major Outlook and Teams Outage After Day-Long Disruption by Nauman khan
- Monolithic Power Systems Is Fairly Valued and Worth Buying by Oliver Rodzianko
