Stock futures fell modestly Wednesday ahead of a closely watched decision on interest rates from the Federal Reserve. The
S&P 500
and
Dow Jones Industrial
Average both closed higher Tuesday for the second consecutive session with bank stocks leading the rally.
These stocks were poised to make moves Wednesday:
Shares of GameStop (GME) soared almost 40% in premarket trading after the videogame retailer reported a surprise profit in its fiscal fourth quarter and sales that topped analysts’ expectations. It was GameStop’s first profitable quarter since the period that ended in January 2021.
GameStop slashed its inventory to just under $683 million at the end of the fourth quarter, down from $915 million a year earlier.
Nike
(NKE) reported fiscal third-quarter earnings and sales that beat Wall Street expectations but shares of the athletic apparel company declined 1.6% in premarket trading as gross margins contracted. Nike said gross margins contracted by 3.3 percentage points to 43.3%. hit by ongoing aggressive discounting activity, unfavorable exchange rates, and higher production and freight costs. The company also issued a weaker margin forecast for the fiscal year.
First Republic Bank
(FRC) rose 1.6% in premarket trading after surging more than 29% on Tuesday. The stock fell in after-hours trading Tuesday following a report from The Wall Street Journal that said the regional lender this week had hired Lazard to help with a review of strategic options that could include a sale, and tapped consultant McKinsey to assist with the bank’s post-crisis structure.
Luminar Technologies
(LAZR) declined 7.9% to $7.12 after shares of the lidar company were downgraded to Sell from Neutral at Goldman Sachs with a price target of $5, the Fly reported.
Array Technologies
(ARRY) was down 2.2%. The manufacturer of solar energy products reported fiscal fourth-quarter profit and revenue that beat analysts’ forecasts.
Residential-vehicle maker
Winnebago Industries
(WGO) is scheduled to report quarterly earnings before Wall Street opens for trading Wednesday, while
Chewy,
the online pet-products retailer (CHWY), and home builder
KB Home
(KBH) are scheduled to report earnings after stock markets close.
Write to Joe Woelfel at joseph.woelfel@barrons.com
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