Premarket movers: Constellation, Zscaler rise while Nike falls

Investing.com - U.S. stock futures edged higher on Tuesday after the Nasdaq Composite closed at a record high, as a selloff in global bond yields eased and oil prices dipped on hopes for renewed Gulf supply flows.

By 05:22 ET (09:22 GMT), the Dow futures contract had risen 263 points, or 0.5%, S&P 500 futures had gained 19 points, or 0.3%, and Nasdaq 100 futures had jumped 91 points, or 0.3%.

The main averages on Wall Street rose on Monday, with the tech-heavy Nasdaq Composite buoyed by continued enthusiasm around artificial intelligence.

The gains extended a rally that began after Friday’s employment report showed softer-than-expected U.S. job growth in September, prompting investors to sharply scale back bets on a Federal Reserve rate increase at its October meeting.

Zscaler shares gained 2.2% in premarket trading after the cybersecurity company reaffirmed its revenue and earnings guidance for fiscal 2027.

The company maintained its full-year revenue forecast of $3.91 billion to $3.94 billion, in line with the Bloomberg consensus estimate of $3.93 billion. Adjusted earnings per share guidance was also unchanged at $4.86 to $4.90, compared with the $4.89 consensus estimate.

For the first quarter, Zscaler reaffirmed its revenue outlook of $935 million to $939 million, matching the $938 million estimate, while maintaining adjusted EPS guidance of $1.15 to $1.16, in line with the $1.16 consensus.

Nike shares fell more than 1% in premarket trading after Berenberg downgraded the sportswear maker to Sell from Hold and cut its price target to $27.50 from $49, arguing that the company has accepted a smaller place in sportswear.

Analysts led by Nick Anderson said Nike’s plan to organize its sportswear business around smaller focus areas suggested that the market structure had shifted against the company. They argued that lower barriers to entry are forcing incumbents to compete with a growing number of challengers across fragmented niches or risk losing market share.

Nike’s performance business continues to show strength, with sales rising by a high-single-digit percentage in the first quarter. Running, football, North American basketball, tennis and golf all posted double-digit growth.

However, the larger sportswear category, which accounts for just under half of group sales, declined by a low-double-digit percentage, while Jordan sales fell by a mid-teens percentage.

Vaxcyte stock fell 3.7% in premarket trading, giving back part of its massive gain in the previous session as investors weighed the dilutive implications of a $1 billion capital raise announced after Monday’s close.

The company launched simultaneous underwritten public offerings totaling $1 billion, consisting of $500 million in common stock and pre-funded warrants and $500 million in convertible senior notes due 2032. Underwriters also received a 30-day option to purchase up to an additional $75 million in each tranche.

The financing came shortly after Vaxcyte announced a major clinical milestone. Its VAX-31, a 31-valent pneumococcal conjugate vaccine candidate, met all 32 prespecified co-primary immunogenicity endpoints in the pivotal adult OPUS-1 Phase 3 trial, exceeding management’s expectations.

Constellation Energy stock climbed 3% in premarket trading after a major deal with Amazon and reports of a potential agreement with Google renewed investor enthusiasm for the largest U.S. nuclear power operator.

Under an agreement announced on September 30, Amazon will purchase 690 megawatts of output from Constellation’s Calvert Cliffs Clean Energy Center in Maryland under a 20-year contract.

The deal supports more than $3 billion in plant investment and roughly 190 megawatts of new emissions-free capacity expected to come online between 2030 and 2032.

Adding to the positive sentiment, Bloomberg reported that Google is nearing a separate nuclear power supply agreement with Constellation worth $1 billion or more, with an announcement potentially coming soon.

Freshworks stock climbed 3.9% in premarket trading after S&P Dow Jones Indices announced that the company will be added to the S&P SmallCap 600 index effective before the market open on October 8. Freshworks will replace BioLife Solutions, which is being removed following its pending acquisition by Repligen.

The announcement, made after Monday’s close, sparked an immediate rally in after-hours trading that continued into Tuesday’s premarket session.

The index inclusion is also expected to create additional buying pressure in Freshworks shares, as passive funds and exchange-traded funds tracking the S&P SmallCap 600 will need to purchase the stock ahead of the October 8 rebalancing.

Original Article

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