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U.S. stock index futures on Tuesday were holding onto slight gains, as market participants digested the latest consumer price index (CPI) report. Headline consumer inflation came in a shade higher than expected, while the core number came in-line with expectations. The CPI data comes a day ahead of the last Federal Reserve monetary policy committee rate decision of the year. Here are some stocks to watch on Tuesday:
- Johnson Controls (NYSE:JCI) stock fluctuated in pre-market trading, after the manufacturer of products such as HVAC equipment, industrial refrigerators and automation for buildings delivered a FQ4 2023 top and bottom line miss. Moreover, JCI's FQ1 and fiscal year 2024 adjusted profit guidance came in below consensus. The company did see a quarterly increase of 9% in orders, while its backlog as of quarter-end rose to a record $12.1B. Johnson Controls (JCI) top boss George Oliver also noted that order momentum was continuing into the new fiscal year.
- The dry bulk shipping industry saw some consolidation after Star Bulk Carriers (SBLK) and Eagle Bulk Shipping (EGLE) announced that they would merge to create a new company with a pro forma market capitalization of about $2.1B. As per the deal, Eagle Bulk (EGLE) shareholders will get 2.6211 shares of Star Bulk (SBLK) stock for each share of EGLE owned, representing a total consideration of about $52.60/share - a premium of 17.3% to EGLE's closing price of $44.85 on Friday. Eagle Bulk (EGLE) shares climbed 9.4% ahead of the opening bell, while Star Bulk (SBLK) was marginally lower.
- Macy's (M) stock slipped more than 2.5% ahead of market open, a day after soaring nearly 20% on a Wall Street Journal report that investors Arkhouse Management and Brigade Capital Management had made a $5.8B buyout offer for the department store chain that valued it at $21/share. Citi on Tuesday expressed skepticism that the offer would be successful. "Others have gone down this path before (Starboard, Hudson's Bay), we are unsure how advanced talks are (M has not commented) and in this interest rate environment and with the secular challenges M faces, it may be difficult to finance," the brokerage said.
- Shares of Alphabet (GOOG) (GOOGL) were in focus, down more than 1% in pre-market trading. Epic Games, the maker of popular online video game Fortnite, has won a high-profile case against Alphabet's (GOOG) (GOOGL) Google after a jury found that the search giant's Play app store was operating as an illegal monopoly. According to the ruling, Google monopolized the Android app distribution and payments market by charging app developers high fees of up to 30% and striking side deals with rivals to fend off competition. Epic's victory could have further ramifications for an app store market dominated by Google and Apple (AAPL).