US pre-market update: Why is Cisco stock on a rise? Key things to know before market opens

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How will markets open today?

  • Stock futures trading flat after Fed meeting minutes indicated at 0.75% rate hike plans.
  • GameStop Chairman Ryan Cohen has filed to sell his entire stake in meme stock Bed Bath & Beyond which rallied 365% in a month.
  • Kohl’s, Tapestry, Ross Stores, Applied Materials will report earnings today.
  • Investors are looking forward to weekly jobless claims and existing home sales data.

Target’s profit tank

  • Target revenue rose to $26 billion while Profit fell 89% on-year to $183 million as it slashed prices to clear out unwanted inventory.
  • Inventory was still high at $15.32 billion at the end of June quarter.
  • Inventory clearance was to prepare itself for holiday season and remain profitable in the long term.
  • It expects revenue growth in single digits and operating margin of 6%.

Cisco tops earnings estimates

  • Cisco revenue declined to $13 billion and profit fell 6% to $2.82 billion, still ahead of street estimates.
  • Strong quarter results were aided by easing supply chain constraints.
  • It expects revenue to grow at 4-6% for the 2023 fiscal year.
  • However, it is still struggling to grow as the tech world is shifting to cloud and subscription software.
  • Cisco share price is up 5% in the pre-market.
  • Which companies to report earnings today?

  • Why is Bed Bath & Beyond in news?

  • How did Target perform in the June quarter?

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