BY THE NUMBERS
U.S. stock futures dropped Tuesday, with elevated bond yields playing spoiler again. Sentiment also took a hit on shares of Target (TGT) falling more than 8% in the premarket on a profit warning. The Dow gave up nearly all of Monday's more than 300-point gain by the close as the benchmark 10-year Treasury yield topped 3%, hitting its highest level in nearly a month. (CNBC)
The S&P 500 and the Nasdaq were able to hold on to more of their Monday advances than the Dow, finishing 0.3% and 0.4% higher, respectively. Despite strong gains in the week leading up to Memorial Day, last week's losses kept the Dow and the S&P 500 firmly in corrections and the Nasdaq in a bear market, based on declines from their prior all-time highs. (CNBC)
Ahead of Friday's May consumer prices data, inflation takes center stage on Capitol Hill as Treasury Secretary Janet Yellen testifies before a Senate panel Tuesday and a House panel Wednesday. Forty-year high inflation has pushed the national average for a gallon of gas to another record, just 8 cents shy of $5, according to AAA. (Reuters)
Sens. Kirsten Gillibrand, D-N.Y., and Cynthia Lummis, R-Wyo., on Tuesday unveiled a bipartisan bill to create a regulatory framework around crypto. The Lummis-Gillibrand bill, the product of months of Capitol Hill collaboration, amounts to classifying the vast majority of digital assets as commodities. (CNBC)
* SEC closes in on rules that could reshape how the stock market operates (WSJ)
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IN THE NEWS TODAY
Target warned Tuesday that earnings will take a short-term hit as the retailer marks down unwanted items, cancels orders and takes aggressive steps to get rid of extra inventory. Target anticipates its operating margin rate for the fiscal second quarter will be around 2%. That's lower than the outlook it gave less than three weeks ago when it reported a wider fiscal first-quarter earnings miss, which sent the stock down roughly 25% in its worst single-day performance on Wall Street since 1987. (CNBC)
Kohl's (KSS) shares surged nearly 10% in Tuesday's premarket, the morning after the department store chain said it entered into exclusive sale negotiations with the retail holding behind The Vitamin Shoppe and Pet Supplies Plus. Franchise Group is proposing to buy Kohl's for $60 per share, a more than 40% premium to Monday's close. Franchise Group is working with Oak Street Real Estate Capital to finance the deal mostly through real estate, according to a person familiar with the matter. (CNBC)
Peloton (PTON) announced the departure of Chief Financial Officer Jill Woodworth after four years with the fitness equipment maker. She'll be replaced by former Amazon and Netflix executive Liz Coddington, effective June 13. Peloton added 1.6% in the premarket. (CNBC)
An FDA panel will convene Tuesday to consider Novavax's (NVAX) approval application for its Covid vaccine. Novavax shares rose 3.8% in the premarket. If approved, the Novavax vaccine would be the fourth cleared for use in the U.S. (Reuters)
* CDC raises monkeypox alert as global cases surpass 1,000 (CNBC)
Texas Attorney General Ken Paxton said Monday that his office is opening an investigation into Twitter (TWTR) over the number of bot accounts on its platform. Paxton's probe initiated on the same day that Elon Musk, via his attorneys, threatened to back out of his agreement to buy Twitter. (CNBC)
Apple (AAPL) would have to change its lightning port charger in Europe if a provisional agreement among EU, Parliament and Council negotiators on a common USB Type-C port for all mobile phones, tables and cameras becomes law.
Affirm Holdings (AFRM) fell 2.8% in the premarket following yesterday's 5.5% drop. The decline came in the wake of Apple's announcement that it would add "buy-now-pay-later" options to its Apple Pay service. Block (SQ), the payments company formerly known as Square, lost 3%.
STOCKS TO WATCH
J.M. Smucker (SJM) slid 3.5% in premarket trading despite better-than-expected quarterly results. Smucker said inflation, supply chain issues and other factors continue to impact results and increase uncertainty. It also said full-year profit would be negatively impacted by a recall of its Jif peanut butter product.
United Natural Foods (UNFI) shares jumped 5.8% in the premarket after the company reported better-than-expected quarterly profit and revenue. United Natural sales were boosted by increased business from new and existing customers as well as inflation, and it raised its full-year forecast.
G-III Apparel (GIII) earned 72 cents per share for its latest quarter, 14 cents a share above estimates. Revenue came in well above Street forecasts. The apparel and accessories company also issued an upbeat outlook and its shares rose 2.3% in premarket action.
BuzzFeed (BZFD) rebounded 4.9% in the premarket, not nearly enough to make up for Monday's 41% slide. The plunge in the digital media company's stock came following the expiration of BuzzFeed's post-IPO lockup period.
GitLab (GTLB) rallied 9.3% in premarket action after the software platform developer reported better-than-expected quarterly results and raised its earnings outlook.