Stock futures were rising Wednesday after Commerce Secretary Howard Lutnick signaled the U.S. may be willing to compromise with its neighbors on tariffs. Wall Street suffered two days of sharp losses that were ignited by President Donald Trump's implementation of 25% tariffs on goods from Mexico and Canada, and an additional 10% tariff on Chinese products.
These stocks were poised to make moves Wednesday:
Chinese ADRs jumped in premarket trading on Wednesday after Beijing set an ambitious economic growth target and vowed more support for domestic consumption and the tech industry as a trade war with the United States heats up.
Direxion Daily FTSE China Bull 3X Shares rose 8%; XPeng Inc. and JD.com rose 4%; Baidu, PDD Holdings Inc and Alibaba rose 3%; Li Auto rose 2%.
CrowdStrike Holdings, Inc. Holdings posted fourth-quarter adjusted earnings and revenue that beat Wall Street estimates but the cybersecurity company's outlooks for its fiscal first quarter and all of fiscal 2026 were well below expectations. CrowdStrike said it expects first-quarter earnings of between 64 cents and 66 cents a share, below Wall Street estimates of 95 cents. Earnings for the fiscal year were forecast at between $3.33 and to $3.45 a share, also below analysts' calls for $4.40. The stock declined 8.1%.
Defense contractor AeroVironment was plunging 19% after issuing weak fiscal-year guidance. The company expects revenue of $780 million to $795 million, down from prior guidance of about $810 million and below Wall Street estimates of $820 million. Adjusted earnings were forecast at $2.92 to $3.13 a share, below analysts' expectations of $3.43. Trump's wavering support for Ukraine has pressured shares of AeroVironment, which is a large supplier of guided munitions to Ukraine.
Tesla Motors rose 2% in premarket trading after the electric-vehicle maker fell 4.4% on Tuesday. It has declined 7.2% over the past two trading days and has finished lower eight of the past nine trading sessions. The issues for investors include tariffs, weak Chinese sales, and the impact of a "buyer's strike" on the company. Tesla closed Tuesday with a market cap of $875 billion, down from its peak market cap of $1.54 trillion on Dec. 17, 2024, according to Dow Jones Market Data.
Shares of NVIDIA were rising 1.6% after the maker of artificial-intelligence chips bucked the downward trend Tuesday and closed with a gain of 1.7%. Nvidia's market cap rose to $2.83 trillion, but that remains well off its peak market cap of $3.66 trillion on Jan. 6, according to Dow Jones Market Data. The stock has risen three of the past five trading sessions but has fallen more than 13% since Nvidia reported quarterly earnings last week.
SUPER MICRO COMPUTER INC also bucked a sinking stock market to close Tuesday up 8.5%, snapping a three-session losing streak. It fell 13% on Monday on Trump's warning that tariffs were coming and the apparent unwinding of the artificial-intelligence trade. Super Micro jumped 3% in premarket trading.
Palantir Technologies Inc. Technologies rose 3.5% after analysts at William Blair upgraded shares of the data-analytics company to Market Perform from Underperform without a price target. The analysts said the higher rating on followed "the 33% DOGE-driven selloff from $125 to $84 over the past three weeks." William Blair said that while valuation remained "frothy with potential downside risk of greater than 40% on government contract delays, there have been positive developments."
Ross, the discount retailer, issued cautious guidance because of softer demand trends in the first two months of the year. "We believe a combination of unseasonable weather and heightened volatility in the macroeconomic and geopolitical environments has negatively impacted customer traffic," said Chief Executive Jim Conroy. The company forecast fiscal first-quarter same-store sales to be down 3% to flat. Analysts had been calling for same-store sales to rise 2.4%. Fourth-quarter earnings at Ross Stores topped estimates. The stock was down 0.7%.
Earnings reports are expected Wednesday from Marvell Technology, Zscaler Inc., MongoDB Inc., Brown-Forman, Foot Locker, and Rigetti Computing.
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