BY THE NUMBERS
U.S. stock futures were pointing to a bounce at Wednesday's open after a punishing three-session losing streak that sent tech stocks plunging and the Nasdaq into a 10% correction from last week's record highs. The Nasdaq lost 4% on Tuesday alone. The Dow Jones Industrial Average on Tuesday lost 632 points, or 2.3%, and the S&P 500 sank 2.8%. Over the past three sessions, the Dow and the S&P 500 did not suffer losses as steep as the Nasdaq, but they were still off 5.6% and 7%, respectively. (CNBC)
* Stanley Druckenmiller says the stock market is in an ‘absolute raging mania’ (CNBC)
*Â Druckenmiller worries about inflation, says it could hit as high as 10% in coming years (CNBC Pro)
Six of the biggest U.S. tech stocks that fueled Wall Street's stunning recovery since its March coronavirus lows lost more than $1 trillion combined in market value in the rout of the past three sessions. Apple (AAPL), which hit a $2 trillion market cap on Aug. 19, lost about $325 billion in value in the three sessions. Microsoft (MSFT) lost $219 billion. Amazon (AMZN) lost $191 billion. Google-parent Alphabet (GOOGL) lost $135 billion. Tesla (TSLA) which crashed 21% on Tuesday alone, lost $109 billion in the past three sessions. Facebook (FB) lost $89 billion. (CNBC)
Tesla rebounded in Wednesday's premarket after its worst single-day loss ever. However, shares of the electric auto maker were still up nearly 300% in 2020 as of Tuesday's close. Tesla's dizzying climb this year had it up as much as 500% at $502 per share when it reached all time highs on Sept. 1, the day after its 5-for-1 stock split took effect. Since then, as of Tuesday's close, the stock tanked 34%, well into a bear market as defined by a decline of at least 20% from recent highs.
On today's economic calendar, the Labor Department issues its latest Job Openings and Labor Turnover Survey at 10 a.m. ET. Economists expect JOLTS to show 6 million job openings in July compared to 5.9 million at the end of June. As for corporate earnings later today, GameStop (GME) and Restoration Hardware parent RH (RH) issue quarterly numbers after today's closing bell. (CNBC)
IN THE NEWS TODAY
Shares of U.K.-based AstraZeneca (AZN), while off the worst levels overnight, were still losing about 1.8% in Wednesday's premarket trading in the U.S., after the drugmaker put its late-stage trial for a potential coronavirus vaccine on hold due to one participant's "potentially unexplained illness." AstraZeneca, which began its trial late last month, is one of three companies currently in late-stage testing. (CNBC)
Democratic presidential nominee Joe Biden travels to the battleground state of Michigan on Wednesday to propose changes to the corporate tax code that would reward investments in U.S.-based manufacturing and penalize American companies that offshore jobs. (CNBC)
The latest CNBC/Change Research poll of six swing state voters, including those in Michigan, shows President Donald Trump didn't get much of a convention boost. Biden holds a 49% to 45% lead in those states, little changed from two weeks ago.
Slack Technologies (WORK) shares sank about 16% in the premarket after the company said late Tuesday its billing growth was below 50% on an annualized basis, in line with the two previous quarters, not showing any real coronavirus work-for-home boost. However, the company behind the popular workplace messaging and productivity platform did beat estimates its quarterly financials. (CNBC)
Lululemon (LULU) reported quarterly profit of 74 cents per share, beating the consensus estimate of 66 cents a share. The athletic apparel maker's revenue topped estimates as well. Lululemon's digital sales rose 155% compared to a year earlier. The company predicted a profit decline of up to 20% this quarter, however, due to increased marketing expenses. Shares were lower. (CNBC)
Netflix (NFLX) announced that Bela Bajaria has been put in charge of the streaming video company's global original series production, and that Cindy Holland will depart. Holland had been with Netflix for almost 20 years and had been instrumental in forming the company's original content strategy. (WSJ)
* Netflix's Reed Hastings: 'We have not been spending any time' trying to get into China (CNBC)
* Hastings on Netflix's 'Hunger Games' culture: Only focus on employees you'd fight to keep (CNBC)
STOCKS TO WATCH
Shares of the luxury goods retailer Tiffany (TIF) are under pressure after France's LVMH said it would stick to a Nov. 24 deadline to complete the deal and that current circumstances would not allow that to happen. Tiffany said it would sue LVMH over the delay in completing the deal, accusing LVMH of being in breach of its obligations. LVMH originally agreed to buy Tiffany for $16 billion back in November 2019.
Both Cowen and Goldman Sachs raised their price targets on exercise equipment maker Peloton (PTON) to a Wall Street-high of $110 per share. The firms note strong demand during the pandemic and Tuesday's announcement of new products and price cuts for Peloton's existing bicycle.
Lyft (LYFT) reported a 7.3% increase in rides during August compared to a month earlier, although that was down 53% from a year earlier. The ride-sharing company also said rides in the week ending Sept. 6 was the highest since April.
Energizer (ENR) was sued by rival Duracell for claiming that its Energizer MAX batteries last 50% longer than other alkaline batteries. Duracell is owned by Warren Buffett's Berkshire Hathaway (BRKB).
Northrop Grumman (NOC) won a $13.3 billion contract from the Air Force to modernize the U.S. intercontinental ballistic missile system.
Under Armour (UAA) plans to lay off 600 workers as part of an ongoing restructuring, and will incur $235 million in charges as a result. The athletic apparel maker also raised its restructuring costs for 2020 by $75 million to a total of $550 million to $600 million.