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U.S. stock index futures on Tuesday pointed to a slightly higher open, as market participants geared up for a host of Federal Reserve speakers through the day. The central bank last week pushed back against rate cut expectations. Here are some stocks to watch on Tuesday:
- Shares of Spirit AeroSystems (SPR) saw a return to pre-market trading, prevailing up ~2%. Concerns over its top customer Boeing’s (BA) 737 Max jets led the company to suspend its guidance for 2024. The announcement, which halted any forward-looking insight, stated that the suspension would continue “until there is further clarity on the timing of 737 MAX production rate increases from our customer in relation to FAA approval and ongoing price negotiations with Airbus (OTCPK:EADSF) (OTCPK:EADSY).” While SPR’s Q4 2023 bottom line underwhelmed, it managed to surpass revenue estimates. The company’s overall deliveries in the quarter grew to 398 shipsets, including 104 Boeing 737 deliveries.
- Spotify Technology (SPOT) stock surged 8% ahead of the opening bell, following the announcement that it had clinched the second-largest Q4 2023 monthly active user (MAU) additions to date. The streaming giant’s total MAUs expanded by an impressive 23% Y/Y to reach 602M, outstripping Spotify’s (SPOT) own forecast by 1M. The growth extended to Premium subscribers, marking a 15% Y/Y increase to 236M, also eclipsing the company’s own expectations by 1M. Moreover, SPOT declared that both revenue and profitability were “inflecting favorably” as it entered 2024.
- Shares of Eli Lilly (NYSE:LLY) enjoyed a more than 5% surge ahead of the market open, driven by the pharmaceutical major’s robust Q4 2023 performance fueled by strong sales of its diabetes drug Mounjaro and weight loss drug Wegovy. The massive demand for these GLP-1 agonists has bolstered Eli Lilly (LLY) and Danish drugmaker Novo Nordisk (NVO), making them the world’s largest healthcare company and Europe’s largest publicly listed company respectively. LLY’s Mounjaro raked in $2.2B in revenue, surpassing the $1.8B Bloomberg estimate, while Wegovy generated $175.8M, exceeding expectations of $140.7M.
- Amgen (AMGN) stock will take center stage, with the Dow 30 component set to disclose Q4 2023 earnings after the closing bell. Analysts anticipate the Thousand Oaks, Calif.-based drugmaker to post earnings of $4.59 per share on revenue of $8.11B. Investors await insights into the company’s strategy to take on leaders in the weight loss space, as Amgen (AMGN) also works on its own GLP-1 agonist. The quarter’s performance is likely to be powered by blockbuster drugs such as osteoporosis treatment Prolia and arthritis injection Enbrel.
- Chipotle Mexican Grill (CMG) shares will also attract attention as the restaurant chain anticipates announcing Q4 2023 results in extended trading. Wall Street projects CMG to record earnings of $9.73 per share on revenue of $2.49B. Chipotle (CMG) has demonstrated consistent growth in 2023, driven by sustained demand for its varied menu offerings despite consumer spending restraint amid inflationary pressures and elevated interest rates.
- DocuSign (DOCU) stock dipped 7% in pre-market trading and was headed for a sixth consecutive session in the red. The decline was sparked by reports stalling DOCU’s planned acquisition with private equity firms. On Tuesday, the electronic signature firm declared that it would remain a publicly listed company. It also shared intentions to reduce its headcount by about 6%, or 400 employees, primarily in sales and marketing. The company expects to incur approximately $28M to $32M in restructuring charges related to the job cuts, with implementation targeted by Q2 2024.
