Several companies are making headlines in premarket trading, especially Alibaba and BJ’s Wholesale Club. Alibaba’s U.S.-listed shares slipped 3.2% after announcing it would no longer spin off its cloud computing business, citing U.S. export restrictions on advanced chips. BJ’s Wholesale Club saw its shares retreat 4.6% after revising its expectation for comparable store sales in the fourth quarter.
However, it’s not all bad news for companies in premarket trading. Tenet Healthcare climbed 3.5% after announcing it would sell three South Carolina hospitals to Novant Health in a deal valued at about $2.4 billion in cash. Gap’s stock soared 18.5% following better-than-expected third-quarter earnings and revenue. Similarly, Ross Stores saw its shares rally 6.3% after posting strong third-quarter earnings and revenue, outperforming analysts’ forecasts.
Other companies making moves in premarket trading include Expedia, with a 3.3% advance after an upgrade to outperform by Evercore ISI, and Pacific Biosciences of California, which added 2.8% following a UBS upgrade to buy from neutral.
Despite the positive news for some companies, there were also declines. Applied Materials saw its shares slide 7.2% after a report that the company was under a Justice Department probe for potentially ignoring export restrictions on Chinese chip company SMIC. GitLab’s stock fell 4.2% after Barclays moved to the sidelines on the company, citing a less attractive risk-reward ratio in the near term. Marriott Vacations Worldwide also saw its shares drop 2.5% after a Bank of America downgrade to underperform from neutral.
On the other hand, Analog Devices’ shares jumped nearly 2% after Morgan Stanley upgraded the company to overweight from equal weight, citing outperformance and forward earnings de-risking following guide-downs from management.
In conclusion, a mix of positive and negative news affecting various companies in premarket trading indicates a volatile morning for investors.
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