U.S. stock futures were higher Tuesday morning, pointing to a second straight day of gains ahead of congressional testimony from Federal Reserve Chair Jerome Powell.
8:02 a.m. ET: Under Armour shares slump after missing fourth-quarter sales expectations
Athletic-wear maker Under Armour (UAA) shares sank more than 13% in early trading after delivering disappointing fourth-quarter sales and projecting a revenue decline in 2020.
The company posted fourth-quarter adjusted earnings of 10 cents per share on net revenue of $1.44 billion, versus Bloomberg-compiled consensus expectations for adjusted EPS of 10 cents on net revenue of $1.47 billion. Closely watched North American sales rose just 1.9% in the quarter, short of the 2.26% rise expected.
Under Armour said it expects 2020 revenue will fall by a low-single-digit percentage compared to 2019’s $5.3 billion in full-year sales. North American sales will likely decline by a high-single-digit percentage, the company said. And Under Armour said it is considering restructuring this year, and that its outlook does not account for any costs that could arise from those potential initiatives.
Under Armour also said it sees a negative impact from the coronavirus outbreak of between $50 million and $60 million in sales during the current quarter.
7:47 a.m. ET: Stock futures rise ahead of Powell testimony
Contracts on the three major indices rose in early trading and headed toward a second consecutive session of gains as investors eyed ongoing developments with the coronavirus and looked ahead to congressional testimony from Federal Reserve Chair Jerome Powell.
Powell is set to deliver the first of two days of congressional testimony starting at 10 a.m. ET as part of his semi-annual monetary policy report to Congress. In a statement released Friday, Powell characterized 2019’s economy as having grown “moderately,” and with the labor market having “strengthened further.”
However, he also called out the coronavirus as presenting “a new risk to the outlook.”
“The recent emergence of the coronavirus,” he said, “could lead to disruptions in China that spill over to the rest of the global economy.”
To date, the coronavirus has infected 43,118 people globally, and the death toll climbed to 1,018, according to the European Center for Disease Prevention and Control. The vast majority of cases and deaths have been confined to mainland China. While some businesses in China resumed operations this week, the restart has been slow-going and fraught with issues as fears over the spread of the coronavirus continue to escalate, according to multiple reports.
Here were the main moves during the pre-market session, as of 7:49 a.m. ET:
S&P futures (ES=F): 3,362.00, up 9 points or 0.27%
Dow futures (YM=F): 29,329.00, up 84 points or 0.29%
Nasdaq futures (NQ=F): 9,567.00, up 39.5 points or 0.41%
Crude oil (CL=F): $50.56 per barrel, up $0.99 or 2.00%
Gold (GC=F): $1,573.10 per ounce, down $6.40 or 0.41%
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