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Stock index futures slide as Israel attacks Iran. (00:18) Kenvue (KVUE) considering selling some skin, beauty brands - report. (01:29) Frito-Lay (PEP) shutting down production at Southern California plant. (02:05)
This is an abridged transcript.
Israel has targeted Iran with a series of strikes against nuclear sites and military targets.
Iran has retaliated by launching over 100 drones at Israel overnight, sharply raising the risk of a full-scale war in the Middle East.
The news has sent stock futures sliding more than 1% while oil prices are surging 7%.
Israel is targeting “dozens” of sites, including nuclear facilities. Prime Minister Benjamin Netanyahu said the operation would last “many days” and was aimed at “rolling back the Iranian threat to Israel’s very survival.”
The State Department on Wednesday "ordered the departure of non-emergency U.S. government personnel due to heightened regional tensions" in the Middle East. The U.S. has permanent military bases in Iraq, Saudi Arabia, Jordan, Kuwait, Egypt, Qatar, Bahrain, and the United Arab Emirates.
Kenvue is weighing the sale of some of its skin health and beauty brands.
Reuters reported, citing sources that Clean & Clear, Maui Moisture, and Neostrata are among the brands potentially being considered Bebe, a German baby care brand, and Japanese brand Dr.Ci:Labo could also be included.
Neutrogena and Aveeno, two of the larger brands in Kenvue's portfolio, are said to not be under consideration.
Sources told Reuters that the brands that could be sold comprise ~$500M in revenue.
Goldman Sachs is reportedly advising Kenvue on the potential divestment.
Frito-Lay (NASDAQ:PEP) is shutting down production at its Rancho Cucamonga plant in Southern California after 50 years in operation.
Although no reason was given for the decision, Frito-Lay North America ("FLNA"), a division of PepsiCo (NASDAQ:PEP) reported an 11% decline in operating profit in Q4 2024, primarily reflecting operating cost increases and a decline in organic volume.
Although the company will maintain its distribution, fleet, and warehouse operations at the plant, shutting down manufacturing is expected to result in the loss of “hundreds” of jobs, according to USA Today.
Because the Rancho Cucamonga plant is not registered with California’s Worker Adjustment and Retraining Notification (WARN) database -- which requires employers to give 60 days’ notice before layoffs – the timing of the closure and the actual number of employees impacted is unknown.
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Now let’s take a look at the markets ahead of the opening bell. Dow, S&P and Nasdaq futures are in the red. Crude oil is up 7% at $73/barrel. Bitcoin is down 1% at $104,000. Gold is up 1.2 % at $3,425.
The FTSE 100 is down 0.4% and the DAX is down 1.4%.
The biggest movers for the day premarket: RH (NYSE:RH) +20% – Shares soared despite mixed FQ1 results, as the company laid out strategic plans to offset U.S. import tariffs.
On today’s economic calendar:
10:00 am Consumer Sentiment
