Southwest, Tesla, Peloton and others
Check out the companies making headlines before the bell:
China ADRs – Shares of China-based companies that trade in the U.S. rose in the premarket after the easing of Covid restrictions by the Chinese government. Among them: Alibaba (BABA) was higher by 1.5%, JD.com (JD) gained 2.2% and Pinduoduo (PDD) was up 2.1%.
Southwest Airlines (LUV) – Southwest slid 4.1% in the premarket following thousands of flight cancellations over the holiday weekend, a higher amount than experienced by other major airlines amid winter storm issues. United Airlines (UAL), American Airlines (AAL), Delta (DAL) and JetBlue (JBLU) all rose in premarket action.
Tesla (TSLA) – Tesla fell 5.3% in premarket trading, after falling for six consecutive trading days and nine of the past ten. Tesla is down about 65% for the year to date, and on pace for its largest-ever yearly loss. The latest slide follows news that the automaker will run production at a reduced rate at its Shanghai factory in January, following an end-of-December shutdown.
Peloton (PTON) – Peloton is selling refurbished bikes at discounts of up to $500 compared with new ones. The new program is the latest effort by Peloton to boost demand, following the expansion of its rental program earlier this year. Peloton rose 1% in the premarket.
Nio (NIO) – Shares of the Chinese electric car maker slumped 6.4% in premarket trading after it cut its fourth-quarter delivery forecast, saying the Covid breakout in major China cities constrained its supply chain.
Farfetch (FTCH) – The luxury e-commerce platform operator was assigned a B- rating by S&P Global Ratings with a negative outlook, which noted the company’s significant negative cash flow. Farfetch rose 1% in premarket action.