News

Stock Futures Rise on S&P 500's Drop

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Andrew R. Michaud

• September 22, 2023

Stock futures were up modestly on Friday following the S&P 500's 1.6% drop on Thursday, which marked its worst day since March. This decline came as investors reacted to signals from the Federal Reserve suggesting that it could maintain higher interest rates for a longer period.

Potential Moves in the Stock Market

Several stocks were poised to make moves on Friday:

Ford (F)

Ford saw a rise of 0.2%.

General Motors (GM)

General Motors gained 0.4%.

Stellantis (STLA)

Stellantis experienced a dip of 0.4%. The United Auto Workers union threatened to expand its strike against the Big Three automakers on Friday if negotiations fail to make substantial progress. The union commenced a limited strike at one facility per automaker a week ago.

Microsoft (MSFT) and Activision Blizzard (ATVI)

VinFast Auto (VFS)

VinFast Auto, the Vietnamese electric-vehicle maker, reported a second-quarter loss of $526.7 million. However, this loss was 8% narrower than the year-earlier period. The company also noted that it delivered 9,535 vehicles in the second quarter, which is a significant increase from the 1,789 vehicles delivered a year earlier. The stock rose by 1.5% in premarket trading.

Oracle Reaffirms Revenue Target and Growth Forecast

Oracle (ORCL) reaffirmed its commitment to achieving $65 billion in revenue by fiscal 2026. Doug Kehring, the company's executive vice president for corporate operations, restated Oracle's forecast for 45% operating margins and a minimum of 10% annual earnings per share growth by fiscal 2026. Kehring expressed confidence in meeting these targets, stating, "We remain confident we are on track to meet those targets." Oracle shares experienced a slight increase of 0.2% in premarket trading.

United States Steel Gets Potential Bid

United States Steel (X) saw a 1.5% increase in its stock price following reports from Bloomberg indicating that Stelco Holdings, Canada's largest steelmaker, is actively pursuing a bid for the American steel producer. This development comes after U.S. Steel rejected a takeover offer from Cleveland-Cliffs (CLF) in mid-August.

Scholastic Faces Decline in Pre-market Trading

Scholastic (SCHL) recorded a significant decline of 16% in premarket trading following the release of its first-quarter financial results. The children's book publisher reported an adjusted loss of $2.20 per share, exceeding analysts' estimates of a loss of $1.35 per share. Furthermore, Scholastic's revenue stood at $228.5 million, falling short of both its previous year's revenue of $262.9 million and market forecasts of $268.8 million. Scholastic explained that the first quarter typically registers a loss as schools are not in session.