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U.S. stock index futures on Tuesday pointed to a largely higher open, as Wall Street looks to snap a three-day losing streak. Market participants looked ahead to a busy economic calendar and several Federal Reserve speakers. Here are some stocks to watch on Tuesday:
- Shares of Carnival (CCL) moved higher by nearly 3% after the world’s largest cruise line operator delivered record Q2 revenue and operating income. The performance was helped by bookings hitting an all-time high on the back of strong travel demand and higher prices driven by less inventory remaining for sale. “Based on continued strong demand trends, we are taking up our expectations for the year with net yields now forecasted to top ten percent and propelling us towards double-digit returns on invested capital,” Carnival (CCL) top boss Josh Weinstein said in a statement.
- FedEx (FDX) stock will be in focus, with the parcel delivery giant scheduled to report FQ4 2024 results after the closing bell. Wall Street expects the Memphis, Tenn.-based firm to earn $5.37 per share on revenue of $22.06B. FedEx (FDX) stock had jumped more than 7% in reaction to its FQ3 earnings back in March, helped by a better-than-expected performance at its Express segment and upbeat remarks from management. The company, often seen as a global economic bellwether, is facing headwinds in its freight and ground segments in the form of weak global trade and inflationary pressures.
- Class A shares of Cloudflare (NET) added 2% ahead of the opening bell, after UBS upgraded the stock rating to Neutral from Sell. The brokerage last year had initiated the content delivery network and cloud security platform with a Sell, based on the view that the stock’s premium multiple “embedded too much near-term” artificial intelligence upside and “didn’t properly consider go-to-market challenges.” However, UBS now thinks that NET shares capture a more balanced risk/reward, following some momentum in global traffic management and better Secure Access Service Edge checks.
- Capri (CPRI) stock advanced more than 2% ahead of market open, after Wells Fargo upped its rating to Overweight from Equal Weight. The owner of iconic fashion brands Versace, Jimmy Choo and Michael Kors, Capri’s (CPRI) plans to merge with Tapestry (TPR) were dealt a blow by the U.S. Federal Trade Commission in April, which moved to block the deal. Capri (CPRI) stock has fallen ~17% since then, but Wells Fargo outlined two scenarios where even if there is no deal, the company could benefit by selling Jimmy Choo and Versace or all three of its flagship brands.