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DJIA Futures: -4 (-0.01%)
SPX Futures: +10 (+0.2%)
NASDAQ Futures: +71 (+0.5%)
Good morning friends!
Futures are mostly higher as traders await key economic data later today.
Let’s get right to it!
Durable Goods Orders Jump Unexpectedly
Durable goods order rose unexpectedly last month, increasing for the third consecutive month.
The Commerce Department reported orders jumped 1.7% in May vs expectations for a 0.8% decline.
That was also an improvement from the 1.2% increase in April.
Durable goods refers to products made to last three years or more, like large appliances, cars, and planes.
Durable goods orders excluding transportation rose 0.6% vs 0% expected.
Walgreens Drops After Cutting Outlook
Walgreens Boots Alliance (WBA) shares are down 8.4% ahead of the open after missing fiscal Q3 expectations and slashing its full-year guidance.
Here’s how the pharmacy chain’s results compared to analysts’ estimates:
- Adjusted EPS: $1.00 vs $1.07 expected
- Revenue: $35.42 billion vs $34.24 billion expected
It was the company’s first earnings miss since July 2020.
But revenue jumped 8.6% year over year as sales grew in the retail pharmacy and health-care segments.
The CEO said she is increasing Walgreen’s cost-cutting initiative to $4.1 billion and taking immediate action to increase profitability.
She said, “I am confident that our turnaround strategy positions WBA to drive sustainable core growth and deliver long-term shareholder value.”
Walgreens lowered its full-year EPS expectations to a range of $4.00 to $4.05 vs $4.45 to $4.65 previously.
Delta Hikes Profit Forecast
Delta Airlines (DAL) shares are up 1.5% in premarket trade after the company hiked its second quarter and full-year outlook.
The airline now expects adjusted EPS of $2.25 to $2.50 in the second quarter, up from $2 to $2.25 previously.
The CEO said the upcoming second-quarter earnings could be the highest ever in company history.
In an interview with CNBC he said, “The demand as you know, as anyone that’s traveling knows, is off the chain.”
Delta now expects free cash generation of $3 billion this year vs $2 billion forecast previously.
The company also now sees revenue per available seat mile to be up as much as 18% year over year vs the prior outlook for 15% to 17% growth.
Lordstown Motors Files For Bankruptcy
Lordstown Motors (RIDE) shares are plunging 59.9% ahead of the open after the electric truckmaker filed for Chapter 11 bankruptcy protection.
The company said it would also put itself up for sale.
The filing comes amid a dispute over investments that had been promised by Taiwanese manufacturer Foxconn.
Lordstown also filed a suit against Foxconn, accusing the company of fraud and failing to abide by an agreement to invest up to $170 million in Lordstown.
The two companies were supposed to work together on a range of new electric vehicles.
Foxconn is accusing Lordstown of attempting to “mislead the public” and said it is suspending talks and reserving the right to take legal action of its own.