Stock futures declined on Wednesday after a turbulent session for tech stocks, triggered by an analyst downgrade of Apple. The Nasdaq Composite suffered a 1.6% drop, marking its worst day since October. However, the Dow Jones Industrial Average managed to rise 0.1% on Tuesday, reaching a new record closing high.
Investors Await Federal Reserve Meeting Minutes
In the day ahead, investors will eagerly await the release of the minutes from the Federal Reserve's most recent meeting. They hope these minutes will offer insights into the anticipated path of interest rates in 2024.
Key Stocks to Watch Today
Here are the stocks that are anticipated to make notable moves on Wednesday:
Apple (Ticker: AAPL)
Apple experienced further losses during premarket trading, as its stock fell 0.4% to $184.86. The technology giant had already closed down 3.6% on Tuesday following a crucial downgrade by Barclays analysts. This downgrade was based on weak sales of iPhones and Mac computers. Despite the stock's significant gain of 48% last year, concerns have been raised regarding Apple's growth potential.
SoFi Technologies (Ticker: SOFI)
SoFi Technologies encountered a downgrade from Keefe Bruyette, shifting its rating from Market Perform to Underperform. The financial-technology company also faced a reduction in its price target from $7.50 to $6.50. Consequently, the stock dropped 3.7% during premarket trading, reaching $9.29.
Rocket Companies (Ticker: RKT)
Rocket Companies, the parent company of Rocket Mortgage, also experienced downgrades from Keefe Bruyette and Wells Fargo. Keefe Bruyette downgraded Rocket Companies from Market Perform to Underperform, maintaining a price target of $10.75. Wells Fargo, on the other hand, shifted its rating from Overweight to Equal Weight but increased the price target to $14 from $13.
Bloomin’ Brands Adds New Members to Board after Agreement with Activist Investor
Bloomin’ Brands, the parent company of Outback Steakhouse, has announced the addition of two new members to its board of directors. This move comes as part of an agreement with activist investor Starboard Value. As a result, the company's stock experienced a significant increase of 4.4%.
AST SpaceMobile Seeks Strategic Investment and Secures Initial Orders
AST SpaceMobile, the company responsible for developing a space-based cellular broadband network, has revealed its plans to close and fund a previously disclosed strategic investment. This investment will involve multiple parties and is expected to take place this month. In addition, AST SpaceMobile has received initial ground infrastructure orders from two customers.
PGT Innovations Evaluating Unsolicited Acquisition Proposal
PGT Innovations, a leading manufacturer of windows and doors, has received an unsolicited proposal from Miter Brands. The proposal suggests acquiring all outstanding shares of the company for $41.50 per share in cash, resulting in an equity value of approximately $2.37 billion. This offer comes after PGT Innovations had already struck a deal with Masonite International for $33.50 in cash and $7.50 in stock. PGT Innovations has stated that it will review Miter Brands' proposal to determine if it presents a superior opportunity.
ARK Invest Acquires Shares of Roku
Funds managed by Cathie Wood's ARK Invest have purchased 190,370 shares of Roku, a popular streaming-media company. This acquisition was disclosed through a trade notification. While the stock closed at $89 on Tuesday, it experienced a slight decrease of 0.8% in premarket trading, reaching $88.29.
Earnings Reports Expected from Unifirst and Cal-Maine Foods
Investors can anticipate the release of earnings reports from two notable companies on Wednesday, namely Unifirst and Cal-Maine Foods.