Tonight’s Highlights | Fed Minutes Incoming, Google Hosts Product Launch
After the previous day’s tech stock sell-off, tension lingers in the air during Wednesday’s U.S. pre-market trading.
As of this report, Nasdaq 100 futures are down 0.27%, S&P 500 futures dip 0.13%, and Dow futures edge up 0.01%. Notable tech stocks like Micron and Palantir remain weak pre-market, while U.S. retail giant Target and global beauty leader Estée Lauder also see significant declines following their earnings reports.
Compared to the past two days, tonight’s off-market events are notably more eventful.
Today, the Federal Reserve will release its July meeting minutes. Three weeks ago, the FOMC saw rare internal dissent, with two governors openly supporting a rate cut. Ahead of Fed Chair Powell’s Jackson Hole speech this Friday, these minutes are a critical document for understanding the Fed’s thinking.
Before that, Fed Governor Christopher Waller, one of the two dissenters in July and a top contender for the next Fed Chair, will attend the Wyoming Blockchain Summit. Wyoming became the first U.S. state to issue an official stablecoin yesterday.
U.S. tech giant Google will also hold its fall product launch, with the spotlight on the Pixel 10 series, including a foldable phone, the Pixel 10 Pro Fold. Given Google’s advancements in AI, capital markets will closely watch AI application showcases on the Android platform.
Adding buzz, the event’s host, talk show star Jimmy Fallon, teased this week that Google will unveil multiple “secret new products” beyond smartphones.
Other Market News
U.S. Retail Giant Target Falls 10% Post-Earnings
As of this report, U.S. retail giant Target dropped 10.77% pre-market after its Wednesday earnings release. Despite a 1.9% year-over-year decline in same-store sales, the company’s revenue and profits beat market expectations, and it reiterated a “low single-digit” sales decline for the year.
Target also announced that COO Michael Fiddelke will become CEO starting February next year. Analysts suggest the pre-market sell-off reflects Wall Street’s preference for an external leader to reverse the downturn.
Estée Lauder Warns of Tariff Impact, Guidance Below Expectations
Pre-market on Wednesday, global cosmetics giant Estée Lauder fell over 6%. The company projects adjusted EPS of $1.9–$2.1 for the fiscal year ending June 2026, below the $2.21 analyst consensus, citing a $100M profit hit from rising U.S. tariffs.
Estée Lauder forecasts organic revenue growth of 0% to 3%, a reversal from last year’s 8% decline.
Trump Admin Reportedly Eyes Stakes in Micron, TSMC
After U.S. authorities confirmed plans to take a stake in Intel, industry sources say Commerce Secretary Howard Lutnick is considering expanding the “equity-for-subsidy” plan to other chipmakers like Micron, TSMC, and Samsung.
On Tuesday, Lutnick confirmed talks with Intel to exchange Chips Act subsidies for a 10% stake, potentially making the U.S. government Intel’s largest shareholder.
Novo Nordisk Implements Global Hiring Freeze
Facing market headwinds, Danish weight-loss drug maker Novo Nordisk has imposed a global hiring freeze across all markets and departments, except for critical roles, a spokesperson confirmed Wednesday.
Newly appointed CEO Lars Fruergaard Jørgensen, who started this month, emphasized cost discipline last month and plans to review the company’s cost structure.
McDonald’s Reportedly to Launch U.S. “Burger Price War”
On Wednesday, reports indicate U.S. fast-food giant McDonald’s reached an agreement with franchisees to offer 15% discounts on eight popular meal combos starting in September, lasting through early next year.
The company also plans to introduce $5 and $8 value meals later in 2025. Franchisees agreeing to the discounts will receive McDonald’s subsidies.
Notably, U.S. McDonald’s franchisees typically set their own prices. For example, the classic Big Mac meal can be priced as low as $5.69 in some smaller cities, but recent price hikes have pushed some regions’ prices to as high as $18, shocking consumers.
Hertz to Sell Used Cars on Amazon Platform
Pre-market on Wednesday, car rental platform Hertz rose nearly 9%. The company announced it will start selling used cars on Amazon Autos to strengthen its retail business and boost profits.
Under the partnership, consumers can browse thousands of Hertz used cars on Amazon’s platform, complete purchases online, and pick up vehicles at Hertz locations.