Dow Jones futures fell Wednesday morning, but off overnight lows triggered after Michael Cohen pleaded guilty, saying he broke the law at the behest of President Donald Trump. Paul Manafort, briefly Trump’s campaign manager in 2016, was found guilty on eight counts. S&P 500 and Nasdaq futures fell as well. Urban Outfitters stock and La-Z-Boy stock broke out late on earnings, while Pure Storage (PSTG) turned profitable.
During Tuesday’s session, the S&P 500 index and Russell 2000 hit record highs. But the major averages pared gains on word that longtime Trump lawyer and fixer Cohen would plead guilty. The Nasdaq composite rose 0.5%, the Dow Jones 0.25% and the S&P 500 index 0.2%.
The Mondayafternoon retreat continued after hours. News broke that Cohen implicated President Trump himself. He pleaded guilty related to hush payments made during the 2016 election campaign to women who claimed affairs “at the direction of a candidate for federal office.” Cohen didn’t name Trump directly in the plea deal. But his lawyer, Lanny Davis, said Cohen “testified under oath that Donald Trump directed him to commit a crime.”
Meanwhile, a jury convicted Manafort on eight fraud charges. The crimes aren’t related to Trump’s candidacy, but could encourage Manafort to cut a deal with special prosecutor Robert Mueller.
Dow Jones futures fell 0.2% vs. fair value. S&P 500 futures slid 0.3%. Nasdaq 100 futures shed 0.2%.
Urban Outfitters earnings shot up 91%, thanks to double-digit same-store sales gains and fewer markdowns for the hipster apparel chain. Urban Outfitters stock jumped 5.6% to 50.40 in the premarket, clearing a 49.10 high-handle buy point.
Keep in mind that Urban Outfitters stock and other after-hours movers may not trade that way in Wednesday’s regular session.
La-Z-Boy earnings rose 62.5% to 39 cents a share. Revenue climbed 8% to $385 million, the best top-line growth in nine quarters. Analysts expected EPS of 25 cents on sales of $367 million.
La-Z-Boy stock popped 17% to 38.80 before the open, blasting beyond a 34.35 buy point. Shares had lounged over the past year, but were up 8.5% in August through Tuesday.
The data storage firm reported a 39% revenue gain to $309 million. Even better, Pure Storage earnings came in at 1 cent a share, defying a forecast for a 5-cent loss and signaling a shift into the black. Pure Storage also agreed to buy cloud-based storage firm StorReduce for an undisclosed sum.
Pure Storage stock climbed nearly 13% in the premarket to 24.80. That suggests a move back above its 50-day moving average. Pure Storage stock has been trending lower since hitting 25.62 on June 14, but may be starting to build the right side of a new base.
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