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U.S. stock index futures on Thursday pointed to a largely flat open, as market participants geared up for a busy economic calendar. Also in focus will be the first U.S. presidential debate later tonight. Here are some stocks to watch on Thursday:
- Class A shares of Levi Strauss (LEVI) plunged more than 17% ahead of the opening bell, after the company missed quarterly revenue estimates and reaffirmed its annual top-and-bottom line guidance. The iconic denim jeans brand said Q2 revenue increased 8% Y/Y on a reported basis to $1.4B, slightly missing estimates. A solid sales performance in Levi’s (LEVI) direct-to-consumer (DTC) business was offset by a mid-single digit decline in its global wholesale segment. Levi (LEVI) top boss Michelle Gass expressed confidence that the company’s pivot to DTC was “yielding positive results around the world.”
- Nike (NKE) stock will be in focus, with the world’s largest shoemaker on tap to report FQ4 2024 numbers after the closing bell. Wall Street expects the Beaverton, Ore.-based company to earn 84 cents per share on revenue of $12.86B. Nike’s (NKE) results are usually seen as a barometer for the state of consumer spending. Citi believes that the firm remains a global leader in athletic gear in North America and Europe. However, the brokerage sees Germany’s Adidas (OTCQX:ADDDF)(OTCQX:ADDYY) as threatening Nike’s (NKE) popularity in a key market – China.
- Shares of Chipotle Mexican Grill (CMG) gained nearly 1% in pre-market trading, a day after posting a slight advance following the completion of a historic 50-for-1 stock split. After markets closed on Tuesday, Chipotle’s (CMG) shareholders of record received 49 additional shares for each share held. The stock split was one of the biggest in the history of the New York Stock Exchange. Chipotle (CMG) stock used to trade north of $3K, but is now available at a much more attractive price.
- U.S. Bancorp (USB) stock retreated about 1.5% ahead of market open, after JPMorgan downgraded it to Neutral from Overweight following the Federal Reserve’s latest stress test. The Fed on Wednesday said all 31 bank subject to its stress test this year remained above their minimum common equity tier 1 (CET1) capital requirements during a hypothetical recession. JPMorgan said the stress test results showed that U.S. Bancorp (USB) would need a sharp increase in capital requirements, which adds another headwind and delays capital return plans.
