Before the bell, have a look at the businesses making news:
Target (TGT) – After missing average expectations by 59 cents with quarterly earnings of $1.54 per share, Target’s stock fell 13.5% in the premarket. The company reduced its operating margin prediction for the current quarter in half because it anticipates a decline in holiday season sales. Target also announced that it would introduce a cost-cutting strategy to save up to $3 billion annually.
Lowe’s (LOW) – After the home improvement retailer topped top and bottom line projections for its most recent quarter and posted better-than-expected comparable store sales, Lowe’s gained 2.4% in premarket trade.
Carnival (CCL) – After the owner of the cruise line announced a $1 billion convertible debt offering as part of its financing strategy, Carnival’s stock fell 12.7% in the premarket.
Advance Auto Parts (AAP) – Following the auto parts retailer’s release of lower-than-anticipated quarterly earnings, Advance Auto Parts saw a 14.7% decline in after-hours trading. Although its sales was in line with Street expectations, performance were hampered by consumers switching from more expensive national brands to its less expensive in-house brands. The corporation has reduced its outlook for the entire year. O’Reilly Auto Parts (ORLY), a rival, decreased 2.9%.
Sage Therapeutics (SAGE) – Following the disclosure in an SEC filing that CEO Barry Greene increased his holdings in the pharmaceutical company by 14,500 shares, Sage Therapeutics increased 3.3% in premarket trading.
Corteva (CTVA) – Corteva lost 1% in the premarket on UBS’s downgrading of the stock of the seed and crop protection products company from buy to neutral, citing a value call. UBS raised its target price for Corteva’s stock from $70 per share to $73 in spite of this.
NetEase (NTES), and Alibaba (BABA) – Following a Reuters story that U.S. regulators had “excellent access” to audits of Chinese companies registered in the U.S., the stocks of China-based corporations are among those that have increased in value. In premarket trading, Alibaba increased 1.8% and Netease increased 3.6%.
Etsy (ETSY) – Evercore maintained an outperform rating on the company but added the online marketplace for handmade goods to its list of “Tactical Underperform” stocks. Evercore approves of Etsy’s long-term prospects, but anticipates a 3-month trend of decreasing frequency of purchases and a move in spending toward lesser-priced items. In the premarket, Etsy fell 3.6%.