Stock futures took a hit on Wednesday as equities were dragged down by a relentless surge in Treasury yields. The S&P 500 experienced a 1.4% decline on Tuesday, reaching its lowest point in four months.
Notable Stocks to Watch
Several stocks are expected to make moves on Wednesday:
Market analysts at KeyBanc have downgraded Apple (AAPL) from Overweight to Sector Weight. They believe that the stock is currently trading at near all-time-high multiples and has a historically large premium to the Nasdaq. Additionally, KeyBanc predicts soft growth from Apple’s Americas region. There is no price target provided for Apple shares. As of premarket trading, the stock was down by 1.4% at $169.96.
Intel (INTC) witnessed a 2% increase in premarket trading following its announcement to spin off its programmable solutions group in a public offering over the next two to three years. The chip maker plans for the spinoff to be effective from January 1, 2024, with the programmable solutions group operating as a stand-alone business. The financials of this business unit will be reported separately when Intel releases its earnings for Q1 of 2024.
Cal-Maine Foods (CALM)
Cal-Maine Foods (CALM) reported fiscal first-quarter earnings that fell short of analysts’ expectations. Sales slumped approximately 30% due to a significant drop in average egg prices, which declined from $2.28 per dozen to $1.59 compared to the previous year. As a result, shares of the egg producer fell by 12% in premarket trading.
A10 Networks (ATEN)
Cloud security software company A10 Networks (ATEN) experienced a 14% decline after announcing its third-quarter revenue expectations. The company predicts revenue to be between $56.5 million and $58.5 million, a decrease from $72.1 million in the same period last year. This projection falls short of analysts’ estimates of $74.6 million. A10 Networks cited “delays related to North American service provider customers pushing out capital expenditures” as the reason behind the decrease.
Earnings reports are expected on Wednesday from the following companies:
- RPM International (RPM)
- Acuity Brands (AYI)
- Helen of Troy (HELE)
- Tilray (TLRY)