Wall Street is looking to stabilize on Tuesday after four straight days of losses pushed the S&P 500 again above the 3,600 mark. Futures pointed to a flat open as investors looked for direction before the next wave of earnings reports. As for individual names, here are some actions to watch for Tuesday:
- American Airlines (AAL) gained ground in premarket trading, up nearly 5% after the company raised its guidance ahead of its earnings report, due out next week. The airline said it expects third-quarter revenue to be up about 13% from the pre-pandemic figure seen in 2019. Previously, the company had targeted a 10% increase to 12%.
- Citi issued a cautious note regarding the semiconductor names Nvidia (NVDA) and Marvell Technology (MRVL). Analyst Atif Malik cut his 2023 EPS estimates for stocks as a slowing global economy is likely to reduce data center sales.
- In a contrary view, Marvell (MRVL) received a separate bullish call from Wells Fargo. Analyst Gary Mobley upgraded the MRVL to Overweight from Equal-Weight, arguing that a “good dose of pessimism” has now been priced into the stock price.
- Elsewhere, KLA Corp. (KLAC) announced that it will stop selling to China-based customers. The move follows new US government export rules, which aim to prevent the use of advanced chips in Chinese military operations. In response to the news, KLAC slid around 2% before the opening bell.
- AZZ inc. (NYSE: AZZ) fell about 7% in premarket shares after the release of disappointing quarterly results. The company’s second-quarter adjusted profit figure came in lower than analysts expected. On a net basis, the company recorded a loss of nearly $59 million, due to a loss related to a divestiture.
Overseas investors will keep an eye on UK trading on Tuesday as the Bank of England steps up its intervention in the fixed income market.