Finance

FedEx received its first five of an order of 500 electric Light Commercial Vehicles (eLCVs) from BrightDrop.
Courtesy: Fedex

Check out the companies making headlines in midday trading.
FedEx – Shares of the delivery giant slid about 21.4% after the company preannounced disappointing results for the recent quarter, citing weakness in global shipment volumes, and several Wall Street analysts downgraded the stock. CEO Raj Subramaniam said he expects the economy to enter a “worldwide recession” on CNBC’s “Mad Money” Thursday. FedEx dragged its peers UPS and XPO Logistics down about 8.3% and 4.7%, respectively.

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International Paper Co. – Shares dropped more than 11% after Jefferies downgraded the stock from hold to underperforming as the paper services industry struggles with a glut of containerboard and sliding demand.
Uber – The ride-sharing service saw shares fall about 3.6% after it said it’s investigating a cybersecurity incident. A hacker had reportedly gained control of Uber’s internal systems after compromising an employee’s Slack account, according to the New York Times.
General Electric – Shares of the industrial conglomerate sank about 3.7% after its chief financial officer said Thursday the company is still dealing with supply chain issues, which is affecting its ability to deliver products to its customers. That, in turn, is putting pressure on GE’s cash flow.
NCR – The technology provider for banks, retailers and restaurants saw shares hit a new 52-week low today after falling just above 20%. NCR’s board of directors announced the company would split into two independent publicly traded companies.
Extra Space Storage – Shares fell about 1.3%. Earlier in the day, the company announced a $590 million deal to acquire rival Storage Express.

Apple – The technology giant was down around 1.1% amid Friday’s sell-off, even as KeyBank said Friday that Apple shares are still a good buy.
Tesla – Shares for the electric vehicle maker ticked down around .1% despite Morgan Stanley saying Friday that the company would likely benefit from the Inflation Reduction Act.
Snowflake – Shares of the cloud computing company dropped more than 6% as growth stocks led Friday’s sell-off. The decline came even as Needham initiated coverage of Snowflake with a buy rating, as the Wall Street firm sees potential new uses for its platform.
CrowdStrike – Though MKM called the cybersecurity company a buy and said it is in a “league of its own,” the stock was down more than 4% as it got hit by the sell-off.
Netflix – Citi raised the price target for the stalwart streaming platform to $305 from $275 while calling it the best avenue for on-demand video services. Shares gained just over 2%.
Amazon – The e-commerce titan was down about 2.1% amid a major sell-off. UBS said it felt “good” about the company’s retail growth and profit margins.
Adobe – Adobe’s stock built on Thursday’s declines, sinking just over 3% after a slew of downgrades from Wall Street analysts. Bank of America downgraded the technology stock to neutral as it awaits further clarity on Adobe’s Figma acquisition.
Baidu – U.S-traded shares for the Chinese internet search provider fell about 2.8% despite UBS rating it a buy with an “attractive” risk/reward ratio. This follows a week of declines for the company’s share value.
FirstEnergy — Shares jumped 1.9% following an announcement that FirstEnergy CEO Steve Strah is retiring, with board chair John W. Somerhalder II to replace him on an interim basis as the board conducts a CEO search.
Boeing – The aerospace company known for its commercial planes was down about 3.7%. The company said Friday it plans to sell some of its 737 Max planes earmarked for China.
— CNBC’s Samantha Subin, Tanaya Macheel, Yun Li, Michelle Fox and Sarah Min contributed reporting.

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Check out the companies making headlines before the bell:
FedEx (FDX) – FedEx tumbled 20.3% in premarket trading after issuing a profit warning due to declining package delivery volumes around the world. The news has exacerbated fears of a slowing global economy, weighing on shares of other logistics companies like United Parcel Service (UPS), down 6.8%, and XPO Logistics (XPO), down 4.2%.

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International Paper (IP) – The packaging and paper products company was downgraded to “underperform” from “hold” at Jefferies, which pointed to decelerating orders and an inventory glut in the industry. For similar reasons, Jefferies cut Packaging Corporation of America (PKG) to “underperform” from “hold” and cut earnings estimates for WestRock (WRK). Sentiment surrounding the packaging companies is also being hit by the FedEx profit warning. International Paper slid 4.6% in premarket action, Packaging Corp. dropped 4.3% and WestRock lost 2.3%.
Uber Technologies (UBER) – Uber said it was investigating a cybersecurity incident after a hacker claimed access was gained to the ride-sharing company’s computer systems. Uber fell 4% in the premarket.
AstraZeneca (AZN) – AstraZeneca gained 1.6% in premarket trading after the drug maker received EU approval for its Covid-19 antibody cocktail.
General Electric (GE) – GE slid 4.5% in the premarket after Chief Financial Officer Carolina Dybeck Happe told an investment conference that supply chain issues are still affecting the company’s ability to deliver products to customers in a timely manner. As a result, the company’s cash flow remains under pressure.
NCR (NCR) – NCR plunged 15.8% in premarket action after announcing plans to separate into two separate publicly traded companies. One company will focus on digital commerce, the other on NCR’s flagship ATM business.

Extra Space Storage (EXR) – The operator of self-storage properties announced a deal worth $590 million to acquire rival Storage Express. Extra Space Storage rose 2.9% in the premarket.
Alcoa (AA) – Alcoa gained 1.1% in premarket trading after Morgan Stanley upgraded the aluminum producer to “overweight” from “equal-weight”. Morgan Stanley is cautious about the mining sector despite strong balance sheets and cheap valuations but sees “deep value” opportunities in Alcoa and some others.

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Last week, Truss announced an emergency fiscal package involving the capping of annual household energy bills at £2,500 (£2,891) for the next two years.
Although details are set to be announced later this month, the government is expected to fund the difference arising from the price cap through borrowing, rather than a windfall tax on energy companies proposed by opposition parties.

New British Prime Minister Liz Truss delivers a speech outside Downing Street, in London, Britain September 6, 2022.
Toby Melville | Reuters

LONDON — New British Prime Minister Liz Truss faces a confluence of economic challenges, but will need to balance her own ideals with the immediate needs of the country.
Last week, Truss announced an emergency fiscal package involving the capping of annual household energy bills at £2,500 (£2,891) for the next two years, with an equivalent guarantee for businesses over the next six months and further support in the pipeline for vulnerable sectors. 

The plan is expected to cost the public purse more than £130 billion, with new Finance Minister Kwasi Kwarteng expected to outline how it will be funded later this month, but is broadly seen by economists as a positive step to limit inflation and reduce the immediate risk of recession.
Former Finance Minister Rishi Sunak’s energy rebate package for households will remain in force, while the Bank of England will establish a liquidity facility to aid firms in the wholesale energy market to weather extreme price volatility.
Energy plan
The fiscal package remains “pivotal” to the U.K.’s growth outlook, according to Modupe Adegbembo, G-7 economist at AXA Investment Managers, who suggested in a research note Monday that the support to real incomes and growth boost will “likely be enough to prevent the economy slipping into a prolonged recession.”
U.K. GDP grew by 0.2% month-on-month in July, official figures revealed on Monday, below consensus expectations for a 0.4% expansion. GDP contracted by 0.1% in the second quarter of 2022, and Adegbembo suggested that the additional public holiday this month for the funeral of Queen Elizabeth II may tip the U.K. into a technical recession this quarter.
The announcement has led major banks to rapidly reappraise their inflation projections. Barclays now expects inflation to close out 2022 at slightly below 9%, well below the Bank of England’s 13.3% projected peak, and the British lender cut its forecast for 2023 CPI inflation from 9% to 5.5%.

U.K. inflation unexpectedly cooled in August, new data showed on Wednesday, so the Bank of England Monetary Policy Committee may be revisiting its outlook. However, economists were cautious of calling the peak, with some speculating that last month’s reading may have been a “fluke” on a broader upward trajectory. 

Food and non-alcoholic beverage inflation rose to 13.1%, further compounding the day-to-day struggles facing household finances.
“Although the first-order impact of ‘Trussonomics’ will be to lower inflation over the next twelve months, the sheer scale of stimulus is likely to add to inflation in the medium term, pointing to a higher terminal rate than the (Bank of England’s) MPC had previously embedded,” said BNP Paribas Chief European Economist Paul Hollingsworth.
“Indeed, we note that the MPC is even further behind the market-implied terminal rate than when it began its tightening cycle.”
Although details are set to be announced later this month, the government is expected to fund the difference arising from the price cap through borrowing, rather than a windfall tax on energy companies proposed by opposition parties.
“A package funded through public debt issuance would not be consequence-free for markets and would need to be factored in by the BoE when deciding on the operational details of its QT [quantitative tightening] programme, in particular the size of active sales and the start date,” Barclays Chief U.K. Economist Fabrice Montagne said in a note last week.
Inflation and a tight labor market
The Bank of England has deferred its next monetary policy decision until Thursday Sept. 22 due to the death of the British queen. The Bank launched its biggest interest rate hike for 27 years in August and is broadly expected to opt for another 75 basis point rise this month.
“Following the announcement of the energy bills support package, we increased our Bank Rate forecasts; we now expect rates to reach 3.5% by year end,” AXA’s Adegbembo said. 
“Whilst the package is set to reduce headline inflation, the boost to growth it will provide leaves the Bank of England with more to do to ensure inflation returns to target.”
AXA expects a 75 basis point hike this week, in line with market expectations, with further 50 basis point increases anticipated in November and December.

Truss was highly critical of what she considered the Bank of England’s failure to nip inflation in the bud during her campaign for the Conservative Party leadership, and is reportedly considering a review of its mandate. 
Governor Andrew Bailey has repeatedly affirmed the Bank’s imperviousness to political pressure, but BNP’s Hollingsworth suggested that with inflation so high, “the optics of under-delivery are different against the current backdrop.”
Truss’s government and the central bank also have to contend with a historically tight labor market, with U.K. unemployment at a 48-year low and the economic inactivity rate at a five-year high, fueling further fears that inflation will be entrenched in the British economy.
Real wages — taking into account inflation — excluding bonuses fell by 2.8% in the three months to the end of July.
Tax reform
During her campaign, Truss argued in favor of tax cuts to boost growth and advocated for the controversial theory of “trickle-down” economics. 
She promised to cancel Sunak’s hikes to corporate tax and National Insurance — a tax on earnings — which had been deployed to bolster the public purse in order to address the cost-of-living crisis directly.
The scrapping of both policies is expected to cost the public purse around £30 billion, with Kwarteng to set out details in his mini-budget later this month.
The energy price freeze and broad tax cuts have drawn criticism for disproportionately aiding the country’s wealthiest households.
The Resolution Foundation, an independent think tank focused on living standards for low- and middle-income households, projected that the overall support package would benefit the highest-income decile of the population by £4,700 per year on average, while the poorest decile would receive £2,200.
Although Kwarteng’s mini-budget will offer more details on how the tax cuts and energy package will be funded, many commentators and political opponents have suggested that Truss’s opposition to levying windfall taxes on oil and gas companies — which have enjoyed record profits due to soaring energy prices — means the costs may well be recouped from taxpayers and cuts to investment in public services.
Truss repeatedly rejected the idea of direct government intervention to cap household energy bills while on the campaign trail, only to announce the new bumper fiscal package a week later.
Economists will be watching for any hints of further U-turns coming down the pike as the new prime minister weighs her economic principles against the country’s precarious position.

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Retail sales grew by 5.4% in August from a year ago, topping a Reuters forecast for 3.5% growth.
Fixed asset investment for the first eight months of the year also beat expectations, despite a greater drag from real estate.
On Friday, National Bureau of Statistics spokesperson Fu Linghui told reporters more than once that insufficient domestic demand is a significant problem.

August was marked by extremely hot temperatures in parts of China, prompting temporary power rationing in some regions. Pictured here on Aug. 24, 2022, is the central city of Chongqing’s skyline with the lights partially turned off to conserve energy during the heatwave.
Vcg | Visual China Group | Getty Images

BEIJING — China reported data Friday that showed a pickup in growth in August from the prior month. The data also came in above expectations across the board.
Retail sales grew by 5.4% in August from a year ago, the fastest since the January-February period this year, according to figures released by the National Bureau of Statistics. August retail sales topped a Reuters forecast for 3.5% growth.

Among the overall encouraging data, retail sales posted the biggest surprise, boosted by passenger car sales and helped by comparison to low growth last August, pointed out Hao Zhou, chief economist at Guotai Junan International. Retail sales had risen by 2.5% year-on-year in August 2021.
This year, catering sales recovered from a Covid-induced slump to rise by 8.4% in August from a year ago, while autos and food sales also grew significantly. That helped retail sales for the year through August grow by 0.5% from a year ago.
Cosmetics and home furniture were among the few categories showing a sales decline in August from a year ago.
Online sales of physical goods rose by 12.8% in August from a year ago, faster than the 10.1% growth in July, according to CNBC calculations of official data.

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Industrial production rose by 4.2% in August from a year earlier, beating the 3.8% increase estimated in a Reuters poll of analysts. Despite a year-on-year decline in major categories such as cement and steel, autos again proved to be a bright spot, with passenger car production surging by 33%.

Fixed asset investment for the first eight months of the year rose by 5.8%, above the 5.5% increase forecast by Reuters. Investment in manufacturing grew the most, up by 10% from the year-ago period. Infrastructure investment grew at a slightly faster pace than in July, on a year-to-date basis.
Real estate investment for the year declined further as of August, down by 7.4% from the year-ago period versus a 6.4% decline reported for the year as of July.

A demand problem

On Friday, National Bureau of Statistics spokesperson Fu Linghui told reporters more than once that insufficient domestic demand is a significant problem. He pointed to more infrastructure and manufacturing investment as ways to support growth.
Fu also said that Covid outbreaks and extreme weather since August affected construction of some projects, slowing investment growth.
The unemployment rate for young people ages 16 to 24 edged lower to 18.7% in August. It remained far higher than the overall unemployment rate in cities, which was 5.3% in August, down slightly from the prior month.
China’s consumer price index edged down from two-year highs to show a 2.5% year-on-year increase in August. But excluding food and energy, the index only rose by 0.8%, again reflecting lackluster demand.
The slump of the massive real estate sector has also weighed on demand. A few weeks earlier, Chinese developer Country Garden described the property market has having “slid rapidly into severe depression.”
Fu said stabilizing the real estate market needed more work, and that the industry was still in a “downward period” despite some positive changes, according to a CNBC translation of the Mandarin remarks.
China’s economy has remained under pressure due in part to Covid controls, which notably stranded tens of thousands of tourists in the tropical island of Hainan in August.

The summer month was also marked by extremely hot temperatures in parts of China, prompting temporary power rationing in some regions.
“Generally speaking, the national economy withstood the impacts of multiple unexpected factors and sustained the momentum of recovery and growth with major indicators showing positive changes,” the National Bureau of Statistics said in a press release. “However, we should be aware that the international environment is still complicated and severe and the foundation of domestic economic recovery is not solid.”
Export growth slowed to 7.1% year-on-year in August, signaling that driver of Chinese growth might be waning as global demand falters. Domestic demand remained weak, with imports only rising by 0.3% from a year ago.
“We expect the boost from exports may continue to wane in the next several months due to the high-base effect and the softening global demand,” said Bruce Pang, chief economist and head of research for Greater China at JLL.
He said policy should focus on boosting domestic demand, primarily by coordinating fiscal and industrial policies, while monetary policy plays a supporting role. “We think massive additional stimulus will not be around the corner, but fine-tuning and follow-up of existing policy measures,” he said.
Correction: This story has been updated to reflect that infrastructure investment grew at a faster pace in August than in July, and that real estate investment declined by 6.4% in the first seven months of the year from a year ago.

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Mergers in software may be about to break out.
Top investment banker Rick Sherlund of Bank of America sees a wave of struggling companies putting themselves up for sale at cheaper prices due to the economic downturn.

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“You do need to see greater capitulation,” the firm’s vice chair of technology investment banking told CNBC’s “Fast Money” on Thursday. “Companies will have their valuation expectations soften, and that will combine with more fully functional financial markets. I think it will accelerate the pace of M&A [mergers and acquisitions].”
His broad analysis comes on the heels of Adobe’s $20 billion dollar deal Thursday for design platform Figma. Adobe failed to generate excitement on Wall Street. Its shares plunged 17% due to questions about the price tag.
Sherlund, a former software analyst who hit No. 1 on Institutional Investor’s all-star analyst list 17 times in a row, worked at Goldman Sachs during the 2000 tech bubble. He believes the Street is now in the beginning stages of a difficult market cycle.
“You need to get through third quarter earnings reports to feel confident that maybe the bad news is largely out into the market because companies will be reporting lengthening of sales cycles,” he said. “We need to reset expectations for 2023.”

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Sherlund and his team are very active in the M&A market.

“You have private equity with a boatload of cash, and they need functioning debt markets for leverage to do deals,” Sherlund noted. “They’re very eager and actively looking at this sector … It suggests that [for] M&A, in absence of an IPO market, we’re just going to see a lot more consolidation coming in the sector.”
He notes the IPO has been hurt in connection with rising interest rate headwinds and inflation.
“[The IPO market] is not open. But when the window does open back up, you are going to see a lot of companies going public,” he added.
The long-term prospects for software are extremely attractive, according to Sherlund.
“You’ve got to be very bullish on the long-term fundamentals of the sector,” Sherlund said. “Every company is becoming a digital enterprise.”
Disclaimer

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Pro athletes Isaiah Thomas and Dexter Fowler are All-Stars in their respective sports, basketball and baseball. Their financial advisor, Joe McLean, works with many other athletes.
The sports stars and the advisor spoke to CNBC to share money lessons and tips gleaned over the course of their careers.

Malerapaso | Istock | Getty Images

HUNTINGTON BEACH, Calif. — Professional athletes are faced with a difficult task early in their careers — learning to deal with big sums of cash as they’re thrust into stardom, often at a young age.
Isaiah Thomas, an all-star basketball player, and major league baseball player Dexter Fowler sat down with CNBC at the Future Proof wealth festival to discuss the money lessons they’ve learned during their professional careers. Financial advisor Joe McLean, who works with Fowler and Thomas, also shared advice from working with wealthy athletes such as NBA star Klay Thompson and pro golfer Sergio Garcia.

Here are six of their best money tips.

1. Save more than you spend

Isaiah Thomas during the NBA All-Star Game in 2016.
Elsa | Getty Images Sport | Getty Images

“Once I got money, once my professional career started, learning how to save was the most important thing I learned,” said Thomas, 33, a point guard who’s currently a free agent. He’s played for many teams over a decade-long career, and was a two-time NBA All-Star during a stint with the Boston Celtics from 2014 to 2017.
When his first paychecks rolled in, Thomas and McLean set parameters: 70% of every net dollar was allocated to a savings bucket. This made the saving automatic, said McLean, chief growth and innovation officer and senior managing director for MAI Capital Management LLC.
“Saving more than you spend was our philosophy every month,” Thomas said.
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The percentage saved can change, depending on the athlete and stage of their career, McLean said. It might be 40% on a player’s first contract, 60% to 70% on the second, and 80% for the third and beyond since “the cash flow is so high” at that point, McLean said.
This approach helps players choose the lifestyle they’d like to live “before your lifestyle chooses it for you,” he added.
“You have to make the decision from the very beginning” to build a habit, he said.

2. ‘Always prepare for rainy days’

“Always prepare for rainy days,” said Fowler, 36, an outfielder who won a World Series with the Chicago Cubs in 2016. He’s currently a free agent.
“You never know what’s going to happen,” he added. “You [could] get in a car accident; you could stop working.
“Hope for the best, but prepare for the worst.”

Dexter Fowler during game seven of the 2016 World Series.
Gregory Shamus | Getty Images Sport | Getty Images

Fowler describes himself as a lifelong saver. As a young boy, he’d keep the physical birthday checks from family members, because he didn’t know they needed to be cashed.
“People live in the moment,” he added. “Don’t get me wrong, have your vice.
“I like watches; that’s my vice, but I don’t have 10 vices,” said Fowler. “That’s how you go crazy; you’re going to spend money but spend it the right way.”

3. Be mindful of financial consequences

For individuals who earn substantial sums of money, there isn’t an immediate consequence of poor financial decisions, McLean said.
“You may have a big Amex bill, [you’re] swiping, make a couple big purchases, but because there’s still money coming in, the card still works,” he said. “You don’t feel it.”
As McLean explains, “the laws of finance don’t follow the laws of physics.”

This is what happens in sports: You save a bunch of money but you have a big lifestyle and you don’t allow that to compound.

Joe McLean
founder and CEO of Intersect Capital

“If you’re walking across a log, you have to keep your eye on where you’re going, and if you take your eye off of it, you fall in the water,” he said. “If you take your eye off your money when you’re making a lot of money, nothing happens.”
Until the money dries up, that is.
“A lot of athletes think it’s never going to stop, or it’s never going to end,” Fowler said Tuesday during a Q&A session at Future Proof. “But it does.”

4. ‘Live like you’re already retired’

“Live like you’re already retired,” Fowler told CNBC.
The thinking is: If you overspend during your working years, it’s hard to downshift to a more frugal lifestyle later — which may be necessary for someone who doesn’t have the nest egg to support lavish spending.
With this mindset, “you don’t have to change your lifestyle when you’re retired,” Fowler said.
“And it’s hard to do,” he added. “You’re in locker rooms and club houses … [and] you see a dude riding in a [Lamborghini].
“You’re like, I’m making seven times what you’re making, and I don’t feel like I can afford that.”

5. Let your money compound

Thomas and Fowler, each in their 30s, have a long investment time horizon — and that’s a powerful thing, McLean said.
Time harnesses the power of compound interest, which is calculated on principal plus accumulated interest — meaning your investment gains accumulate more quickly.
“This is what happens in sports: You save a bunch of money but you have a big lifestyle and you don’t allow that to compound,” McLean said. “Letting this money compound for another 10 years, double it one more time, [then another] time, that’s when it becomes multi-generational-type wealth.”
By comparison, “you’re not going to allow the compounding effect” by continuing to spend heavily and whittling away a portfolio over the next decade, he said.
Fowler is putting this idea into practice.
“We want to save these next 10 years,” he said of his family. “We cut down on everything.”

6. Look beyond the lump sum

Fowler got a signing bonus worth almost $1 million in 2004, when he was drafted by the Colorado Rockies. He was just out of high school, 18 years old and had gotten his first contract, he said.
“You’re sitting there and you’re like, I have $1 million?” he said. “One million dollars then was a ton of money.”
“But $1 million doesn’t get you a long way,” he added.
For everyday retirees, the same principle may apply — a $1 million nest egg may sound like an ample sum of money for living large but may not go as far as people expect over a retirement that can last three decades or more.

Upon getting his signing bonus, Fowler immediately wanted to buy a car. All the newly drafted players were buying Escalades and Range Rovers — so he bought a Range Rover, against the advice of his dad, who recommended leasing instead of buying a car, Fowler said. (Fowler now exclusively leases his cars; he has two Teslas. Cars are “depreciating assets,” he explained.)
Tax also ate into a substantial portion of his signing bonus, Fowler added. He then realized, when playing minor-league ball after the draft, that it’s tough to live on that salary, which netted him about $300 to $400 every two weeks — making the bonus essential to help make ends meet.
“I saw a bunch of dudes getting offseason jobs” he said. “I was fortunate enough I didn’t have to do that.”
Correction: This article has been updated to reflect that Joe McLean is currently chief growth and innovation officer and senior managing director at MAI Capital Management.

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Adobe Systems world headquarters in downtown San Jose, Calif.
Lisa Werner | Moment Mobile | Getty Images

Check out the companies making headlines in midday trading.
Netflix — The streaming stock gained 7% after Evercore ISI upgraded Netflix to an outperform rating and said its stock could rally more than 30% as it rolls out an ad-supported service and cracks down on password sharing.

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Adobe — Adobe shares slumped 15% on news that it’s acquiring a design software firm known as Figma for roughly $20 billion in cash and stock. The company beat earnings estimates for the period but shares mixed guidance for the current quarter.
Oracle – Shares of the software company dropped another 2%, extending a 5% sell-off from the previous session on weak earnings. Oracle’s earnings came in at $1.03 per share, adjusted, compared to the $1.07 per share expected by analysts, according to Refinitiv. Its revenue met expectations, however. 
Rail stocks — Select rail stocks moved higher following the announcement of a tentative, last-minute deal between the railroad companies and the unions that represent their workers. Union Pacific and Norfolk Southern rose 1.6% and just below 1%, respectively. CSX Corp. was down more than 2% despite ticking up in extended trading before the bell.
Wynn Resorts — Shares jumped 8% after Credit Suisse upgraded Wynn Resorts to outperform, saying the casino stock could nearly double after its hotel convention center expansion in Las Vegas.
‘Buy now, pay later’ stocks — Shares of major “buy now, pay later” stocks slipped on the back of a report from the Consumer Financial Protection Bureau calling for more oversight into the sector. PayPal and Affirm Holdings both declined less than 1%, while Block’s stock added nearly 2%.

Fisker — The electric vehicle maker’s share price jumped 3.6% after Needham initiated coverage of Fisker with a buy rating as demand for electric vehicles accelerates. Tesla shares rose about 1% amid an upgrade to a hold rating from underperform.
Humana — Humana shares climbed nearly 7% after upping its earnings guidance for the fiscal year. The health insurance company also announced a new addition to its board of directors.
Nordstrom — The department store stock gained 2% after Jefferies upgraded it to a buy rating. The firm said in a note to clients that Nordstrom is better positioned than some of its peers in a downturn.
Deckers Outdoors — Deckers Outdoor’s stock edged more than 2% higher after Wedbush upgraded the footwear company to outperform, saying in a note to clients that it’s well situated to ride out a difficult retail environment.
Danaher — Shares of the medical technology company were up about 1% a day after the announcement of spin-off plans for its environmental and applied sciences unit.
NextEra Energy — NextEra Energy ticked just shy of 3% lower the day after the alternative energy company said it plans to sell $2 billion in equity units.
Arconic Corp — Shares of the manufacturing company tumbled nearly 15% after Arconic cut its full-year forecast amid higher energy costs in Europe and declining demand.
Duckhorn Portfolio — Shares of the winemaker dropped 8% after being downgraded by JPMorgan to neutral from overweight. JPMorgan said it still likes Duckhorn, calling the company’s long-term and operational performance track record since its initial public offering “impressive.” However, the firm is concerned Duckhorn’s guidance could disappoint.
— CNBC’s Alex Harring, Michelle Fox, Yun Li and Sarah Min contributed reporting.

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Check out the companies making headlines before the bell:
Union Pacific (UNP), CSX (CSX), Norfolk Southern (NSC) – Rail stocks are all higher in the premarket following news of a tentative agreement that prevents a rail workers’ strike. CSX – which also named former Ford Motor (F) President Joe Hinrichs as its new CEO – rose 4.1% in the premarket, with Union Pacific up 3.95% and Norfolk Southern adding 1.5%.

Arconic (ARNC) – Arconic tumbled 9.8% in premarket trading after the aluminum products maker cut its annual forecast due to a variety of production costs and higher energy costs in Europe.
NextEra Energy (NEE) – NextEra Energy plans to sell $2 billion in equity units, with the alternative energy company planning to add the proceeds to the general funds of its NextEra Energy Capital Holdings subsidiary. The stock slipped 3.5% in the premarket.
Danaher (DHR) – Danaher gained 4.2% in the premarket after the medical technology company announced plans to spin off its environmental and applied sciences unit into a separate company. The transaction is expected to close in the fourth quarter of 2023.
AIG (AIG) – The insurer’s life insurance unit CoreBridge raised $1.68 billion in the biggest initial public offering of 2022. In the IPO, 80 million CoreBridge shares were sold at $21 per share, at the low end of the projected $21-to 24 range. AIG gained 1.75 in the premarket.
Nordstrom (JWN) – The department store operator’s shares jumped 2.6% in premarket action after Jeffries upgraded the stock to “buy” from “hold”. The firm said younger and wealthier consumers will be spending on major wardrobe upgrades, and Nordstrom is best poised to benefit from that trend.

Wynn Resorts (WYNN) – The casino and resort operator was upgraded to “outperform” from “neutral” at Credit Suisse, which called Wynn one of the most compelling stories in the gaming industry. Wynn rose 2.5% in premarket trading.
Netflix (NFLX) – The streaming service’s shares were up 2.5% in premarket trading following an Evercore ISI upgrade to “outperform” from “in line”. Evercore based its opinion on Netflix’s revenue opportunities from its planned ad-supported tier and limits on password sharing.

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