2023-03-22 08:56:18 ET
Stocks were generally holding steady before the opening bell on Wednesday, as investors looked ahead to the Federal Reserve's interest rate announcement, due out during the afternoon. Wall Street experienced gains in the first two days of the week, as fears about the banking sector eased. Here are some stocks to watch on Wednesday:
- The release of quarterly results triggered a premarket surge in GameStop ( NYSE: GME ), with shares skyrocketing 51% after the company recorded a surprise Q4 profit. The video game retailer revealed net income of $48.2M for the quarter, compared to a net loss of $147.5M in the same period last year. Revenue dipped about 1% to $2.25B.
- Nike ( NKE ) reported a quarterly profit that beat expectations , with revenue that rose 14% from last year to reach $12.39B. At the same time, gross margin contracted amid higher markdowns, higher input costs and unfavorable changes in foreign exchange rates. Inventories rose 16%.
- Spotify ( SPOT ) and Warner Music ( WMG ) both advanced in premarket trading after receiving upgrades from Guggenheim Securities. The firm raised its ratings on WMG and SPOT to Buy from Neutral, pointing to growth potential in the global music industry over the next several years.
- Petco Health and Wellness ( WOOF ) slumped in premarket trading, falling by nearly 8%. The pet supply retailer missed projections with its Q4 profit. The company's adjusted EBITDA slipped to $170M, even as revenue climbed almost 5% to $1.58B.
- For more on the pet market, Chewy ( CHWY ) is slated to release its quarterly results after the closing bell. The online retailer is projected to lose $0.10 per share, with revenue expected to rise almost 11% from last year to reach $2.65B.
- KB Home ( KBH ) is also scheduled to announce its financial figures in the postmarket period. Analysts are looking for the home builder to experience an earnings drop from last year, with the company's EPS slipping to $1.12. Revenue is projected to fall to $1.3B.
Looking at the overall market, Seeking Alpha contributor Christopher Yates predicted that the "growth slowdown is not over yet," meaning that " patience is still warranted for investors ."
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7 stocks to watch on Wednesday: GameStop, Nike, Petco and more