Sign InWhat to Know Before Markets Open on Tuesday, January 14
Alex Vellor
The Dow Jones Industrial Average rose 358.67 points (0.86%) Monday, led by non-tech giants like Caterpillar, JPMorgan, and UnitedHealth. In contrast, the S&P 500 increased just 0.16%, while the Nasdaq Composite fell 0.38%, driven by a continued selloff in major tech stocks.
Premarket Movers:
| Company | Ticker | Performance | Details |
|---|---|---|---|
| Nvidia | NVDA | +1.3% | Bounced after four days of declines on expectations that fresh U.S. export restrictions could hurt revenues. |
| Tesla | TSLA | +1.4% | Boosted by Morgan Stanley lifting its price target, citing advancements in autonomous vehicle technology and embodied AI. |
| Lululemon Athletica | LULU | +0.3% | Lifted its holiday outlook for earnings and revenue. |
| KB Home | KBH | +9.7% | Fourth-quarter results surpassed analyst estimates on the top and bottom line. |
| Applied Digital | APLD | +20% | Macquarie to invest up to $5 billion in the firm's AI data centers and take a 15% stake. |
| Hormel Foods | HRL | -0.4% | CEO James Snee to retire at the end of 2025 after nearly nine years of leadership. |
| H&E Equipment Services | HEES | +100% | United Rentals to acquire the company in a $4.8 billion deal, tapping into equipment rental demand. |
| United Rentals | URI | +2.5% | Announced acquisition of H&E Equipment Services. |
| Signet Jewelers | SIG | -16% | Reduced fourth-quarter guidance for fiscal year 2025. |
Moderna Stock Sinks 17% on Lower Guidance
Moderna (NASDAQ:MRNA) cut its 2025 sales forecast by $1 billion, projecting revenue of $1.5–$2.5 billion, mostly in the year’s second half. The biotech firm is scaling back costs and expanding its portfolio but failed to reassure investors.
The announcement sent Moderna shares down 17%. Other vaccine stocks followed, with Novavax and BioNTech losing over 7%, reflecting broader concerns about declining demand in the post-pandemic era.
Southwest Airlines Tightens Spending
Southwest Airlines (NYSE:LUV) announced measures to cut costs and improve margins. CEO Bob Jordan said the company is:
- Pausing corporate hiring and promotions.
- Cutting most summer internships.
- Suspending long-running employee events, including rallies dating to 1985.
Southwest is also implementing operational changes, such as moving to assigned seating, adding extra legroom sections, and eliminating unprofitable routes.
The airline, under pressure from activist investor Elliott Investment Management, aims to restore its profitability. Jordan emphasized the need to maintain urgency as Southwest works to regain its industry-leading margins.
Southwest shares rose 14% over the past year but lagged behind competitors. United Airlines soared 160%, Delta gained 70%, and American Airlines rose 33%.
Retail Stocks News
Retailers like Lululemon (NASDAQ:LULU), Abercrombie & Fitch (NYSE:ANF), and American Eagle (NYSE:AEO) raised their holiday-quarter guidance after reporting strong seasonal sales. Despite the positive outlook, investors reacted cautiously.
However, American Eagle’s stock dropped 15% as traders doubted whether growth would continue. Macy’s (NYSE:M) added to sector woes by warning that its fourth-quarter was underperforming.
About The Author
Alex Vellor
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