Stock futures indicate a modest increase in the market as Wall Street aims to recover from a previous slump triggered by retail sales data. The surge in bond yields prompted caution among investors. In the afternoon, the Federal Reserve is set to release the minutes from its July 25-26 meeting.
Notable Stocks for Today
Coherent Struggles with Weaker Than Expected Forecast
Optoelectronics company, Coherent (COHR), witnessed a 19% drop as its fiscal first-quarter and year forecasts fell short of expectations. The company expects adjusted earnings of 5 to 20 cents per share in the first quarter, with revenue ranging between $1 billion and $1.1 billion. This forecast significantly deviates from analysts’ predictions of earnings at 47 cents per share and revenue at $1.17 billion. Coherent highlighted that their forecast assumes no substantial improvement in the macroeconomic environment, including China.
Cava Group Surprises Analysts with Strong Second-Quarter Performance
Mediterranean restaurant chain, Cava Group (CAVA), reported earnings of 21 cents per share in the second quarter, surprising analysts who were anticipating a loss of 2 cents. Moreover, the company’s revenue of $171.1 million exceeded forecasts. This marked Cava’s first report after going public in June, resulting in an 11% surge in their stock.
Tower Semiconductor Acquisition Falls Through, Stock Declines
Tower Semiconductor (TSEM) saw a significant decline of 9.3% in premarket trading as Intel (INTC) terminated its proposed $5.4 billion acquisition of the Israeli chip maker. This decision came after the failure to obtain regulatory approval from China. On the other hand, Intel experienced a slight rise of 0.3%.
DLocal Reports Strong Q2 Results, Stock Surges
In premarket trading, DLocal (DLO) experienced a 30% rise following the announcement of their second-quarter results which exceeded expectations. The online payments company also maintained their revenue guidance for the year, projecting a range of $620 million to $640 million. Additionally, DLocal appointed Pedro Arnt as co-chief executive. Arnt previously served as the chief financial officer at MercadoLibre (MELI), a prominent Latin American e-commerce giant.
VinFast Witnesses Stock Plummet After Merger
VinFast (VFS), the Vietnamese electric-vehicle maker, observed a significant drop of 12% in premarket trading. Just the previous day, the stock had skyrocketed by over 250% as a result of the company merging with the SPAC Black Spade Acquisition.
Earnings Reports to Watch Out For
Today, before the opening bell, we anticipate earnings reports from Target (TGT), TJX Cos. (TJX), and JD.com (JD). Cisco Systems (CSCO), Synopsys (SNPS), and Wolfspeed (WOLF) are scheduled to report earnings after the market closes.
