Friday Morning Rebel Brief: Kohl’s Stock Falls. Semi’s Fall. Energy Rises.

Stocks started the morning lower but are trying to make a comeback on the first day of Q3. Consumer discretionary is performing well early as well as the energy sector. On the other side, semiconductors are lagging on news of weakening demand from Micron’s earnings.

Source: FinViz S&P Heatmap as of 10AM EST

Let’s take a look at the news that’s moving stocks this morning.

Kohl’s Stock Falls

Shares of troubled retailer Kohl’s have fallen dramatically this morning on news that it is no longer in talks to be acquired by Franchise Group (FRG). The company said this was due in part to a tough retail environment which made it difficult for both parties to agree to a fair deal. The company simultaneously cut it’s guidance for the quarter citing weakened consumer spending. Shares of Kohl’s (KSS) are down more than 18%.

General Motors (GM) is Halted in the Premarket

Shares of GM are trading lower this morning after a halt and news release in the premarket. The automaker announced a big adjustment to second quarter deliveries — 95,000 vehicles which have already been assembled will not be delivered or sold in Q2. 

The company blamed the news on the chip shortage, but reaffirmed full year earnings guidance. Notably, 95,000 vehicles that won’t be delivered means 95,000 vehicles that were planned to be sold in Q2 — and now won’t be. As a result, the stock is down more than 2% in the premarket.

Micron (MU) Beats EPS, Misses Revenue, Lowers Guidance

Shares of semiconductor stock Micron are sliding in the premarket after a slight miss in revenue (-0.03%) and an EPS beat (+6.10%, $2.59 vs $2.44 expected). The chipmaker lowered its sales outlook for the coming quarter, citing lower demand. This runs in contrast with GM’s news from this morning. Shares of Micron (MU) are down more than roughly 4%, with the semiconductor sector following the stock downward.

Chinese Automakers Pop

China-based automakers Li Auto (LI), Xpeng (XPEV), and Nio (NIO) are all trading higher this morning on news of higher-than-expected June deliveries. This news runs in stark contrast to GM’s news of lower Q2 deliveries, against what many expected to be a tough quarter for Chinese businesses. All three EV stocks are trading higher by between 1-3%.

For more quick takes on this morning’s market-moving news, check out 60 Seconds With Jon Najarian!

https://twitter.com/jonnajarian/status/1542858550463983617

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