Stock Market

People walk by a Gap retail store on August 24, 2022 in Beijing, China.
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Check out the companies making headlines before the bell on Tuesday.

SoFi Technologies — The financial technology stock dropped 3.7% after KBW analyst Michael Perito downgraded the stock from underperform from market perform. Perito hiked his price target for shares by $2 to $7.50, however, which still implies shares can fall 34.5% from Monday’s closing price. 

Estee Lauder — The beauty stock shed 1.1% following a Barclays downgrade to neutral from buy. The firm said difficulties in China could weigh on the business in the near-term.

Gap — The retail stock climbed nearly 4% after Barclays upgraded Gap to overweight from equal weight. Analyst Adrienne Yih assigned a $13 price target to the company, which suggests shares could rally 26.2% from Monday’s close. The firm also upgraded retailers American Eagle, Bath & Body Works and Tapestry to overweight. Each of those are up more than 2% in early morning trading.

Incyte — Shares rose 2% after Incyte beat analysts’ expectations in its latest results. The pharmaceutical company reported second-quarter revenue of $954.6 million, exceeding the FactSet consensus estimate of $909.7 million. Per-share adjusted earnings came in at $0.99, higher than the forecasted $0.72 per share. CEO Herve Hoppenot cited double-digit growth in Jakafi (ruxolitinib), a treatment for blood cancer.

Uber — Shares of the ride-hailing giant rose more than 2% in premarket trading after the company reported second-quarter results that missed analysts’ expectations for revenue but offered rosy guidance for the third quarter. CEO Dara Khosrowshahi said the company achieved two major milestones during the quarter: its first quarter of free cash flow over $1 billion and its first GAAP operating profit. 

Caterpillar — Shares of the manufacturing company gained 1.4% after reporting better-than-expected earnings and revenue. Caterpillar warned of potential decline in sales and margins for the third quarter, however.

Merck — Shares of the pharmaceutical giant rose nearly 2% premarket after the company reported second-quarter revenue that topped expectations, driven by sales of its blockbuster cancer drug Keytruda and HPV vaccine Gardasil. Merck also posted a narrower than expected loss for the quarter.

Pfizer — The stock shed more than 1% in early morning trading after Pfizer reported second-quarter adjusted revenue that beat expectations but posted revenue that fell short of Wall Street’s estimates. The company’s revenue miss was caused by a decline in Covid product sales.

ZoomInfo Technologies — Shares sank by nearly 20% in premarket trading after the data company reported a weak outlook for third-quarter revenue. ZoomInfo, which posted results after Monday’s close, said it anticipates $309 million to $312 million in revenue, falling short of analysts’ expectations of $326 million as gauged by Refinitiv. ZoomInfo’s revenue in the latest quarter also missed expectations, coming in at $309 million, while analysts estimated $311 million.

Toyota Motor — The automaker added about 2% after reporting operating income of 1.12 million yen ($7.84 billion) for the fiscal first quarter, 94% higher than a year prior. That topped the 9.878 trillion yen expected from analysts polled by Refinitiv.

Arista Networks — Shares advanced 13.6% in premarket trading after the company reported after the bell Monday that its quarterly earnings topped analysts’ expectations. Arista posted adjusted earnings of $1.58 per share, versus consensus analyst estimates of $1.44 per share, according to Refinitiv. Revenue also came in higher than expected at $1.46 billion, compared to analyst expectations of $1.38 billion.

— CNBC’s Tanaya Macheel, Alex Harring, Yun Li, Sarah Min, and Michelle Fox Theobald contributed reporting.

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