5 things to know before the stock market opens

News of the day of August 20, 2024

Lowe’s (WEAK) lowers its full-year forecast; media executive Edgar Bronfman Jr. reportedly submitted a formal $4.3 billion bid for control of Paramount Global (HAS); shares of Hawaiian Airlines’ parent company, Hawaiian Holdings (HA) jump after the Department of Justice (DOJ) cleared Alaska Air Group (ALK) Purchase of the carrier for 1.9 billion dollars; Boeing (License) reportedly discovered cracks in the structure of its 777X airliner during early test flights; European Union (EU) reduces customs duties on imports of Tesla made in China (TSLA) electric vehicles (EVs). U.S. stock futures were little changed after shares finished higher The S&P 500 closed near its all-time high yesterday. Here’s what investors need to know today.

1. Lowe’s follows rival Home Depot in cutting full-year forecast

Lowe’s (WEAK) cut its full-year sales and profit forecasts due to do-it-yourself (DIY) spending, while reporting quarterly revenue that fell short of analysts’ expectations. Lowe’s posted second-quarter revenue of $23.59 billion, below Visible Alpha’s expectations of $23.90 billion, albeit adjusted Earnings per share (EPS) of $4.10 beat expectations. The company attributed the quarterly sales decline to “continued pressure on higher DIY discretionary spending and unfavorable weather negatively impacting sales.” Lowe’s said comparable sales For the full year, revenue is expected to fall 3.5% to 4%, versus a prior forecast of 2% to 3%, and total sales are expected to be between $82.7 billion and $83.2 billion, versus $84 billion to $85 billion. The home improvement chain’s reduced outlook follows lower guide from competitor Home Depot (High definition) last week. Stocks are up slightly in premarket trading.

2. Bronfman reportedly offered $4.3 billion for control of Paramount

Media executive Edgar Bronfman Jr. has reportedly submitted a formal $4.3 billion bid for National Amusements, the majority shareholder of Paramount Global (HAS), according to Skydance Media has reached an agreement for Shari Redstone’s media empire last month. According to The Wall Street JournalBronfman’s offer for National Amusements is similar in price to Skydance’s, but $400 million less termination feesA key difference is that there is no dilution for Paramount shareholders because this is not an all-stock offering. Bronfman has raised financing from high-net-worth individuals and family offices, and is partnering with film producer Steven Paul, according to the report. Paramount shares are down about 3% in premarket trading.

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3. Hawaiian Holdings shares climb as Alaska Air merger clears hurdle

Shares of Hawaiian Airlines’ parent company, Hawaiian Holdings (HA) jumped 11% in pre-market trading after the Department of Justice (DOJ) cleared Alaska Air Group (ALK) $1.9 billion purchase of the carrier. Alaska Airlines, whose shares are up 2%, said the DOJ let the review period expire without challenging the merger, which was announcement last December. The two airlines must now…