BY THE NUMBERS
U.S. stock futures fell Wednesday, one day after the Nasdaq dropped 2.4% as Snap’s 43% slide on a profit warning dragged many other tech stocks lower. The Nasdaq’s bear market Tuesday was just shy of a 30% decline from its most recent high. (CNBC)
The S&P 500 retreated 0.8%, breaking a two-session winning streak, but was still above the bear market level of down 20% or more from a prior high. The Dow managed a small gain for its third straight positive session. But the 30-stock average remained in a steep correction as defined by a decline of 10% or more from its most recent high. (CNBC)
Bond prices of late have been the recipient of the sell-off in stocks. The 10-year Treasury yield, which moves inversely to price, dipped to around 2.7% on Wednesday, ahead of the afternoon release of the minutes from the Federal Reserve’s May policy meeting. (CNBC)
Even as the 10-year yield recently backed off late 2018 highs above 3%, it’s still more than double the December low, taking mortgage rates higher and cooling demand for home loans. Applications to purchase a home were flat week to week and down 16% from a year ago. Refis dropped 2% and were 75% lower than the same week one year ago. (CNBC)
IN THE NEWS TODAY
Dick’s Sporting Goods (DKS) shares sank more than 11% in Wednesday’s premarket, shortly after cutting its financial forecast for the full fiscal year, citing sky-high inflation and ongoing supply chain challenges. The sporting goods chain did beat expectations on quarterly earnings and revenue as shoppers spent money on golf clubs, soccer gear and athletic apparel. (CNBC)
In contrast to the inflation-driven troubles at other retailers, Nordstrom (JWN) gained nearly 6% in premarket trading, though off overnight highs. The high-end department store chain after the closing bell Tuesday raised its annual sales and profit forecast. While posting a slightly wider-than-expected loss for its fiscal first quarter, Nordstrom saw sales surge 18.7% and exceed pre-pandemic levels. (CNBC)
Wendy’s (WEN) shares gained roughly 9% in the premarket after it became known late Tuesday in a filing that the fast-food chain’s largest shareholder, Trian Partners, is exploring a potential deal for the company. The hedge fund, founded and run by Nelson Peltz, currently owns a 19.4% stake in Wendy’s. Trian holds three board seats at the fast-food company, including one held by Peltz, the chairman. (CNBC)
Federal plans to inspect a baby formula factory linked to the nationwide shortage were slowed by COVID-19, scheduling conflicts and other logistical problems, according to prepared testimony from the head of the FDA for a House panel hearing Wednesday. (AP)
* FTC launches investigation into infant formula makers over shortage (CNBC)</…….
