Stock Market Futures Return Gains From Prior Day Despite Efforts By Biden Administration To Ease Trade Pressures
U.S. stock futures are moving lower in early morning trading on Tuesday this week. Admittedly, the current volatility in stocks does not seem to be ceasing anytime soon. Even as President Joe Biden mentions plans to potentially ease trade tariffs on Chinese imports, concerns surrounding the economy are persisting. Between growing mentions of recession and the upcoming GDP estimate set for release this Thursday, this is understandable.
Despite all this, some analysts believe things may not be as bad as they seem. Weighing in on this is the chief strategist from Spouting Rock Asset Management, Rhys Williams. He argues, “I do think that the economy is better right now than the stock market is telling you.” Williams continues, “And my guess is we’re going to muddle through on both stocks and bonds over the summertime.” Regardless of where you stand on this, there is no shortage of notable stock market news to consider today as well. As of 5:16 a.m. ET, the Dow, S&P 500, and Nasdaq futures are trading lower by 0.97%, 1.40%, and 1.99% respectively.
Snap Stock Tumbles Following Negative Performance Update From CEO Evan Spiegel
Snap (NYSE: SNAP) appears to be coming under fire in the stock market today. For the most part, this seems to be the result of the company’s latest update on its quarterly financial guidance. As of yesterday, the company anticipates that it will miss its revenue and adjusted earnings targets for its current quarter. Additionally, the announcement is also filed with the Securities and Exchange Commission (SEC). According to CEO Evan Spiegel, Snap is also planning to slow hiring through 2022 amidst efforts to optimize its expenses.
In Spiegel’s words, “Today we filed an 8-K, sharing that the macro environment has deteriorated further and faster than we anticipated when we issued our quarterly guidance last month.” The Snap CEO also adds that while the company’s revenue continues to increase year-over-year, there is some deceleration, nonetheless. Across the board, the company is facing a barrage of operational headwinds. This comes at a time when soaring inflation and growing interest rates continue to dampen digital advertising demand. With social media firms like Snap relying on digital ad revenue for income, this is not too surprising.
At the same time, this downward movement in SNAP stock is also impacting Snap’s peers. Among the other names in the crosshairs now would be Meta (NASDAQ: FB), Google parent company Alphabet (NASDAQ: GOOGL), and Pinterest (NYSE: PINS). Not to mention, even digital advertisers such as The Trade Desk (NASDAQ: TTD) are feeling the pressure as well. In closing, Spiegel writes, “Our most meaningful gains over the coming months will come as a result of improved productivity from our existing team members.” Safe to say, there would be plenty of attention on SNAP stock at today’s opening bell.
Insulet Gains On Mentions Of Potential Takeover Offer From Dexcom
In other news, Insulet (NASDAQ: PODD) is gaining traction in the stock market now thanks to a recent news report. Notably, according to sources from Bloomberg, diabetes treatment developer DexCom (NASDAQ: DXCM) is looking to acquire Insulet. Before going into the details, a brief introduction to Insulet. Similar to DexCom, Insulet focuses on producing innovative medical devices for the treatment of diabetes. Its main means of doing so is via the proprietary Omnipod product platform. The likes of which empower Insulet’s Omnipod Insulin Management System, offering diabetes patients an easy-to-use and wearable insulin delivery device.
More importantly, following the Bloomberg piece on DexCom being keen on Insulet, PODD stock would be in focus now. To put things into perspective, Insulet currently has a market cap of $13.8 billion while DexCom is valued at $31.5 billion. In theory, should an acquisition occur, Insulet’s diabetes portfolio could complement DexCom’s diabetes monitoring offerings as well. Worth mentioning, the duo are already working together via a non-exclusive commercialization agreement. Through which Insulet’s tubeless insulin delivery Pod is working in tandem with DexCom’s continuous glucose monitoring systems. As such, investors would be turning their radars towards PODD stock today.
Zoom In Focus After Handily Topping Earnings Estimates And Upbeat Guidance
Meanwhile, Zoom (NASDAQ: ZM) is among the major tech names turning heads today as well. Namely, this is thanks to the company reporting overall solid figures in its latest quarterly financial report. According to the press release, Zoom’s earnings per share for the quarter is $1.03. Also, the company’s total quarterly revenue is $1.07 billion. For reference, consensus figures on Wall Street are earnings of $0.87 on revenue of $1.07 billion. Following the noticeable earnings beats, investors could be keen on ZM stock now. Additionally, another key metric to consider would be Zoom’s customer figures. Particularly, the company’s total customers contributing over $100,000 in trailing 12 months revenue is up by 46% year-over-year.
Providing an overview of the company’s performance for the quarter is CEO Eric Yuan. He states that Zoom “delivered revenue of over one billion dollars driven by ongoing success in Enterprise, Zoom Rooms, and Zoom Phone, which reached 3 million seats during the quarter. We also maintained strong profitability and cash flow, including 17% in GAAP operating margin, approximately 37% non-GAAP operating margin, approximately 49% operating cash flow margin, and over 46% adjusted free cash flow margin.” All in all, it seems that Zoom is firing on all cylinders on the operational front now.
Also in the earnings report, Zoom is currently anticipating revenue of between $1.115 billion to $1.12 billion for the current quarter. This would translate to year-over-year growth of about 9.2% on the lower end. To compare, the current consensus on Wall Street is $1.1 billion, or an 8.7% year-over-year increase. With all this in mind, I could see ZM stock making a splash at today’s stock market open.
Today’s Top Stock Market Earnings To Know About
On the earnings front today, we have a diverse spread of companies to consider. For starters, there are plenty of retail players in the pre-market hours. This is evident as Best Buy (NYSE: BBY), AutoZone (NYSE: AZO), Abercrombie & Fitch (NYSE: ANF), Ralph Lauren (NYSE: RL), and PetCo (NASDAQ: WOOF) are on tap. Also, Canadian Solar (NASDAQ: CSIQ) is hosting its earnings call at the same time.
Alternatively, there are plenty of firms to take note of after the closing bell as well. To highlight, Nordstrom (NYSE: JWN) and Urban Outfitters (NASDAQ: URBN) will be representing the retail firm during these hours. Furthermore, the likes of Agilent Technologies (NYSE: A) and Intuit (NASDAQ: INTU) are also providing financial updates.