Here are five things you must know for Tuesday, March 5:
1. -- Stock Futures Suggest a Slight Rebound for Wall Street
U.S. stock futures were modestly higher on Tuesday, March 5, following a slump for equities in the previous session as Wall Street lost momentum after a report said China and the U.S. were in the final stages of completing a trade deal.
Many market-watchers suggested Monday's lower close was the result of a trade deal between Washington and Beijing already being priced in or an overdue correction from the months-long rally in stock prices.
An unexpected decline in U.S. construction spending also dented sentiment, analysts said.
For Tuesday, contracts tied to the Dow Jones Industrial Average were up 44 points, futures for the S&P 500 rose 4.25 points, and Nasdaq futures gained 10 points.
The economic calendar in the U.S. Tuesday includes the PMI Services Index for February at 9:45 a.m. ET, New Home Sales for December at 10 a.m., and the ISM Non-Manufacturing Index for February at 10 a.m.
2. -- Salesforce Declines After Tepid Guidance
Salesforce.com (CRM) - Get salesforce.com, inc. Report posted stronger-than-expected fourth-quarter earnings and raised its revenue guidance for the current financial year, but the cloud company issued near-term earnings guidance that was modestly weaker than analysts' forecasts.
Salesforce shares declined 2.2% in premarket trading on Tuesday.
The company said earnings for the three months ended in January were 70 cents a share, more than double the 28 cents recorded over the same period last year and well ahead of the Wall Street consensus forecast of 46 cents. Revenue rose 26% from last year to $3.6 billion and topped analysts' estimates of $3.56 billion. Subscription and support revenue rose 26% from last year to $3.38 billion.
Looking into 2019, Salesforce said it was raising its revenue forecast to a range of $15.95 billion to $16.05 billion and said it expects first-quarter revenue in the range of $3.67 billion to $3.68 billion, just shy of the $3.7 billion forecast. Non-GAAP earnings were forecast in the range of 60 cents to 61 cents a share, largely in-line with Wall Street estimates.
"Our relentless focus on delivering innovation and customer success has fueled our growth and solidified our leadership in the enterprise," said co-CEO Keith Block. "This is just the beginning, which is why we're now targeting $26 to $28 billion in revenue by FY23 - organically doubling our revenue again in the next four years."
"Bottom line: After trading a few dollars within its all-time high last week, the shares pulled back during Monday's session (with many other cloud software stocks) before the print and those losses have extended after-hours (Monday night)," said Jim Cramer and the Action Alerts PLUS team, which holds Salesforce in its portfolio. "The critics will point to the company's high valuation as a reason to sell, however, we see a tremendous opportunity that is still in its beginnings."
3. -- Target and Kohl's Lead Tuesday's Earnings Calendar
Target said earnings were $1.53 a share, 1 cent ahead of the Wall Street forecast. Sales were essentially flat at $22.98 billion and modestly ahead of analysts' estimates of $22.91 billion. Same-store sales rose 5.3%, firmly ahead of market expectations, a figure the company said it sees rising at a low to mid-single-digit range over the first quarter of the current fiscal year.
Shares rose 5.6% in premarket trading.
Kohl's (KSS) - Get Kohl's Corporation Report earned $2.24 a share on an adjusted basis in its fourth quarter, beating analysts' estimates by 6 cents. Revenue in the quarter of $6.82 billion topped forecasts of $6.58 billion.
Kohl's said same-store sales in the period rose 1% vs. estimates that called for same-store sales to fall 0.5%.
The stock rose 4.4% in premarket trading.
4. -- Walt Disney to Cut Bob Iger's Compensation
Walt Disney (DIS) - Get Walt Disney Company Reportis cutting $13.5 million of CEO Bob Iger's annual future potential earnings ahead of the closing of Disney's $71.3 billion acquisition of Fox's (FOX) - Get Fox Corporation Class B Report entertainment assets, the Associated Press reported.
Disney's annual shareholder meeting will be held Thursday. A year ago, shareholders voted against Iger's pay package at the shareholder meeting in a non-binding vote that the media company said it would take into consideration for future compensation.
The company is cutting an annual base salary increase of $500,000 that Iger was set to receive when the Fox deal closes and maintains his current base of $3 million. It cuts the annual bonus he was set to receive by $8 million to $12 million. It also cut his annual target long-term incentive award by $5 million to $20 million, according to the Associated Press.
5. -- General Motors to End Production at Ohio Plant on Wednesday
General Motors (GM) - Get General Motors Company Reportwill end production of the Chevrolet Cruze Wednesday at its assembly plant in Lordstown, Ohio, the first of five North American plants the automaker will idle this year.
A GM spokesman told Reuters the company was "ahead of the production schedule" and added that production had been scheduled to end Friday "but now it looks like it will finish up Cruze production on Wednesday."
The plant closings come as GM shifts to making making trucks, SUVs and electric and autonomous vehicles.
The United Auto Workers has sued GM over the closings. The union said the plant closings violate a 2015 collective bargaining agreement.