BY THE NUMBERS
U.S. stock futures dropped Wednesday as rising inflation slammed another retailer. Target (TGT) sank more than 20% in the premarket, shortly after a big earnings miss. A similar profit picture at Walmart (WMT) was revealed Tuesday. The Dow stock closed down nearly 11.4% in its worst single-session decline since 1987. Walmart shares lost another 1.5% in Wednesday's premarket. One of the drivers behind spiking inflation is energy costs. U.S. oil prices jumped 2.5% on Wednesday, topping $115 per barrel once again. (CNBC)
Despite Walmart's troubles, the Dow on Tuesday rose 431 points or 1.3%. The S&P 500 and the Nasdaq gained 2% and nearly 2.8%, respectively, in Wall Street's latest attempt at a recovery following weeks of steep losses. The Nasdaq was still in a bear market as defined by a drop of 20% or more from its prior high. The Dow and S&P 500 were still in corrections, defined by a decline of 10% or more from prior highs. (CNBC)
The government's April housing starts and building permits report, out at 8:30 a.m. ET, is projected to show a decline in building activity. Economists expect a 2.4% decline to an annual rate of 1.75 million units. Housing starts had edged higher by 0.3% in March. Building permits in April are seen dropping 2.8% to 1.82 million. Permits rose 0.4% in March. (CNBC)
* Weekly mortgage demand from homebuyers tumbles 12% (CNBC)
The 10-year Treasury yield rose Wednesday, right around 3%. The strength in the benchmark yield can be attributed to comments from Federal Reserve Chairman Jerome Powell. In a Wall Street Journal interview Tuesday, Powell said the central bank won't hesitate to keep hiking interest rates until inflation comes down. (CNBC)
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Target's premarket stock plunge came after the retailer Wednesday morning reported adjusted first-quarter earnings that fell well short of estimates. The company's profit was hampered by pricey freight costs, higher markdowns and lower-than-expected sales of discretionary items from TVs to bicycles. (CNBC)
Like Walmart on Tuesday, which also cited inflationary and higher inventory pressures, Target's revenue exceeded estimates. Target reiterated its sales forecast, which calls for mid single-digit growth on a percentage basis this year and beyond. (CNBC)
Unlike Home Depot's strong quarter and guidance a day earlier, rival Lowe's on Wednesday morning delivered first-quarter revenue that missed expectations. Lowe's shares dropped 2% in the premarket. The company saw cooler spring weather hurt demand for supplies for outdoor do-it-yourself projects. (CNBC)
Home Depot held up as pro sales outpaced DIY. Lowe's, which gets about 75% to 80% of its total sales from DIY customers, did beat on earnings. The company reiterated its full-year outlook for sales between $97 billion and $99 billion. (CNBC)
JPMorgan (JPM) Chase's Jamie Dimon was handed a rare rebuke late Tuesday as shareholders expressed their disapproval of his $52.6 million bonus designed to keep him at the helm for another five years. While the vote was nonbinding, JPMorgan's board said it takes investor feedback "seriously" and intended Dimon's bonus to be a one-time event. (CNBC)
STOCKS TO WATCH
Carrier Global (CARR) fell 2.7% in the premarket after Bank of America Securities downgraded the stock to "neutral" from "buy." The firm said it is now more bearish on the residential HVAC market following a recent industry conference and said Carrier has the highest relative exposure of its peers to that market.
Penn National Gaming (PENN) rallied 3.2% in the premarket after Jefferies upgraded the stock to "buy" from "hold," noting the current stock price only assigns minimal value to Penn's digital operation. Jefferies feels the unit could demonstrate good returns over time.
Shoe Carnival (SCVL) reported a quarterly profit of 95 cents per share, 9 cents above estimates, with revenue also beating consensus. Shoe Carnival also raised its full-year outlook. Shoe Carnival added 1% in premarket trading.
Analog Devices (ADI) earned an adjusted quarterly profit of $2.40 per share, 29 cents above estimates, and reported better-than-expected revenue. The company said it was able to increase output despite supply chain challenges, with demand remaining strong. Analog Devices added 1.9% in premarket trading.
Warby Parker (WRBY) slid 2.1% in premarket trading after the stock was downgraded to "neutral" from "buy" at Goldman Sachs. Goldman said it sees a longer path to growth for the eyewear retailer, which reported lower-than-expected quarterly earnings earlier this week.
Container Store (TCS) surged 8.2% in the premarket after reporting better-than-expected profit and revenue for its latest quarter. The storage and organization products retailer also said it aimed to achieve $2 billion in annual sales by 2027.
Doximity (DOCS) plunged 14.5% in premarket action after the cloud-based platform for medical professionals issued a weaker than expected current-quarter revenue forecast. Doximity also reported better-than-expected quarterly profit and revenue.