Take a look at some of the biggest movers in the premarket:
Gap (GPS) – The parent of Gap, Old Navy, and Banana Republic pulled the full-year forecast that it had issued earlier this month and also suspended its dividend, as all its stores close due to the coronavirus outbreak. Gap also said it would draw down its entire $500 million credit facility. Separately, Moody’s downgraded credit ratings for both Gap and fellow retailer Macy’s (M) to junk status.
KB Home (KBH) – KB Home reported quarterly earnings of 63 cents per share, beating consensus estimates by 18 cents a share. The home builder’s revenue also came in above analysts’ forecasts. The quarter was driven by a 31% increase in orders and a 28% jump in deliveries. KB Home withdrew its 2020 forecast, however, given the uncertainty surrounding the COVID-19 pandemic.
Lululemon (LULU) – Lululemon beat estimates by 4 cents a share, with quarterly earnings of $2.28 per share. The athletic apparel maker’s revenue was slightly above consensus estimates. The company said sales saw a significant downturn during the second week of this month, as the virus outbreak forced it to close its U.S. and European stores.
Cheesecake Factory (CAKE) – The restaurant chain is furloughing about 41,000 hourly restaurant employees, cut pay for corporate employees by 10% to 20%, and said it was in talks with landlords about its rent obligations. The moves are to deal with the virus outbreak were detailed in a Securities and Exchange Commission filing.
WW International (WW) – Morgan Stanley upgraded the Weight Watchers parent to “overweight” from “equal-weight,” which expects an increased focus on health, wellness, and weight loss post-COVID-19, following weeks of limited physical activity and stress eating.
Toyota Motor (TM) – The automaker is seeking a $9.2 billion credit line from its bankers, according to a report by Japan’s Kyodo News. Toyota would not confirm the story, saying only that it continuously evaluates its fundraising needs but did not have anything to announce.
United Technologies (UTX), Raytheon (RTN) – The defense contractors received Justice Department approval to proceed with their planned merger, subject to certain divestiture conditions. The deal was first announced last June and would be the defense sector’s largest-ever merger.
Facebook (FB) – Facebook said independent director Jeffrey Zients would not seek re-election to the board. Former Deputy Treasury Secretary Robert Kimmitt will take Zients’ place on the social media giant’s board.
Cal-Maine Foods (CALM) – The nation’s largest egg producer is on watch as egg prices continue to soar as consumers stock up on staples in the wake of the virus outbreak. Wholesale egg prices have tripled since early March.
Hertz Global (HTZ) – Hertz is reportedly in talks with banks to raise cash, as it tries to deal with the fallout from the virus outbreak. A Bloomberg report said the rental car company is considering several options, including collateralizing the company’s vehicle fleet.
Deere (DE) – JPMorgan Chase upgraded the heavy equipment maker’s stock to “neutral” from “underweight” on a valuation basis, although it remains cautious due to structural challenges in the agriculture sector.
Home Depot (HD) – The home improvement retailer was upgraded to “buy” from “hold” at Loop Capital, which feels Home Depot will be less impacted by the coronavirus outbreak than most retailers.
Ross Stores (ROST) – Deutsche Bank named the discount retailer a “Top Pick,” projecting an upside of 20% for the off-price apparel sector.