In premarket trading, several companies made notable headlines, particularly in the fashion and healthcare sectors. PVH Corp, the parent company of fashion brands Calvin Klein and Tommy Hilfiger, experienced a significant boost in its stock price, soaring approximately 16%. This increase followed the announcement of robust fourth-quarter earnings, where the company reported earnings of $3.27 per share, excluding special items, alongside revenues of $2.37 billion. These results surpassed analyst expectations compiled by LSEG, which had forecasted earnings of $3.21 per share and revenues of $2.33 billion.
Conversely, Johnson & Johnson saw a 4% dip in its stock. The decline came after a U.S. bankruptcy judge rejected the company’s proposed $10 billion settlement related to numerous lawsuits claiming that its talc-based baby powder products caused ovarian cancer. The judge noted that the settlement lacked sufficient support from women who alleged that their cancer was a result of using these products, leading to uncertainty about the company’s future legal liabilities.
The airline industry also faced challenges, with several stocks declining following downgrades by Jefferies. Stocks of American Airlines and Delta Air Lines fell nearly 2% after being downgraded to "hold" ratings. Southwest Airlines was particularly affected, losing over 3% after being rated "underperform." These downgrades came amidst ongoing concerns about airline performance and market conditions.
In a brighter turn, Xpeng, a Chinese electric vehicle manufacturer, saw its U.S.-listed shares rise by 3%. This uptick followed the announcement that Xpeng delivered 33,205 vehicles in March 2023, marking a striking increase of over 260% compared to the same month the previous year. This surge in deliveries reflects growing consumer interest and demand for electric vehicles in a competitive market.
Newsmax, a conservative cable news network, experienced a dramatic surge in its stock price, climbing more than 22% in premarket trading. This increase followed an extraordinary performance where Newsmax’s stock skyrocketed over 700% during its public debut on the New York Stock Exchange. After opening at $14 per share, up from the initial pricing of $10, the stock ended the previous trading session at $83.51, indicating strong investor demand and interest.
Shake Shack, the popular burger chain, enjoyed a 3% increase in its shares after Loop Capital Markets upgraded the stock from "hold" to "buy." The investment firm highlighted Shake Shack’s strong history of exceeding sales expectations as a justification for the upgrade, while also noting that recent price adjustments presented a compelling buying opportunity for investors.
Another company benefiting from an upgrade was First Watch Restaurant Group, whose shares increased more than 3% after receiving an upgrade to "buy" from "hold" at TD Cowen. Analysts at TD Cowen expressed optimism for the company’s future performance, anticipating improved same-store sales in 2025 as a result of enhanced marketing strategies.
In summary, the premarket trading landscape showcased a mixed bag of performances among various stocks. While PVH Corp and Newsmax capitalized on strong earnings and investor excitement, Johnson & Johnson faced legal headwinds, and airline stocks struggled with downgrades. Electric vehicle manufacturers like Xpeng continued to demonstrate robust growth, and both Shake Shack and First Watch Restaurant Group received favorable analyst attention, reflecting positive sentiment in the restaurant sector. As trading continues, investors will be keenly watching these movements and the subsequent developments for these companies.
