Stock futures posted modest gains on Thursday, anticipating a report that is expected to reveal a decline in U.S. inflation for September. This decrease can be attributed to slower growth in gasoline prices and a decline in used-car costs.
Ford Faces Struggles Amid Union Strike
Ford (F) experienced a 1.6% decrease in premarket trading due to the announcement of a strike by the United Auto Workers union at their Kentucky Truck Plant in Louisville. With over 9,000 workers, this plant is Ford’s largest worldwide. The union regards this surprising move as a “new phase” in their ongoing strike.
Microsoft Faces IRS Dispute Over Back Taxes
Microsoft (MSFT) encountered a 0.4% fall after receiving a notice from the Internal Revenue Service claiming that the company owes $28.9 billion in back taxes, along with interest and fines, spanning from 2004 to 2013. Microsoft has stated its disagreement with the proposed adjustments and will contest the IRS request vigorously through administrative appeals and, if necessary, in court. A resolution to this matter is expected to take several years.
Anticipated Earnings Report for Delta Air Lines
Wall Street expects Delta Air Lines (DAL) to report third-quarter earnings of $1.95 per share, an increase from $1.51 per share the previous year. Revenue is forecasted to be $14.5 billion, up from $12.8 billion. Investors will be closely monitoring the carrier’s demand and fuel costs when the report is released before the start of trading. Delta experienced a slight increase prior to the report.
Walgreens Boots Alliance Reports Decrease in Fourth Quarter Earnings
Analysts are predicting that Walgreens Boots Alliance (WBA) will have earned 69 cents per share in its fiscal fourth quarter, a decline from the 80 cents per share reported in the same quarter last year. Quarterly sales for Walgreens are expected to reach $34.8 billion. This comes as the company recently announced the appointment of Tim Wentworth as their new chief executive. Wentworth will be leading the global pharmacy chain at a challenging time. Despite the anticipated decrease in earnings, Walgreens saw a slight rise of 0.3% in premarket trading.
Earnings Reports from Fastenal and Domino’s Pizza Also Expected
In addition to Walgreens, Fastenal (FAST) and Domino’s Pizza (DPZ) are slated to release their earnings reports on Wednesday.
Birkenstock Experiences a Disappointing Trading Debut
Birkenstock (BIRK) saw a 0.2% increase in premarket trading, reaching $40.28 following its highly anticipated trading debut. However, the German shoe maker’s initial public offering was priced at $46 per share, and the stock opened at $41 on Wednesday, representing an 11% decrease from the IPO price. By the end of the day, Birkenstock had fallen 12.6%, closing at $40.20.
Victoria’s Secret Updates Expectations for Third Quarter Performance
Victoria’s Secret (VSCO) has revised its expectations for the third quarter, anticipating an adjusted operating loss ranging from $45 million to $65 million. This is an improvement from the previous guidance, which suggested a loss of $45 million to $75 million. Additionally, the company now forecasts an adjusted net loss between 70 cents and 90 cents per share, rather than the initial projected range of 70 cents to $1. Victoria’s Secret has experienced strong international sales growth and positive sales trends in North America, which are continuing to improve each month.