Stock futures are inching higher ahead of testimony from Federal Reserve Chairman Jerome Powell that could offer clues about future rate increases. Here’s what we’re watching Tuesday:
- IBM IBM 0.15% shares dropped 2.6% premarket. UBS cut its rating on the stock to Sell and lowered its price target.
- Rivian RIVN -5.61% shares also slid 2.6%. The electric-truck maker’s chief operating officer left the company last month as the startup was ramping up production of its first three models.
- Cheers for chips: AMD shares climbed 2% after KeyBanc lifted its rating and the price target for the stock. Other chip makers were posting gains as well. Intel added 1.5% and Nvidia gained 0.6%.
- Tesla gained 1.1%. The electric-car maker sold 70,847 China-made vehicles in December, the China Passenger Car Association said Tuesday.
- Zynga still has some zing in it. The game maker’s stock soared 41% on Monday after Take-Two Interactive said it would buy it, but Tuesday morning it was still inching up premarket, by a more modest 0.5%.
- Abercrombie & Fitch added 5.9% premarket in low-volume trading. The retailer warned sales for the holiday quarter would fall short of its previous estimate due to inventory delays and increased Covid-19 restrictions.
- Accolade jumped 10% ahead of the bell. The health benefits company reported revenue for the recent quarter that had more than doubled from a year prior.
- Albertsons is among the companies reporting earnings Tuesday.
Chart of the Day
- Investors are betting that looming interest-rate increases will fuel profits in financials and make the sector more attractive than tech, one of the main contributors to last year’s rally.
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