5 Things to Know Before the Stock Market Opens

U.S. stock futures are falling as investors brace for the “triple witching” event today; Nike (NKE) shares are rallying in premarket trading after the sports apparel giant said it was replacing Chief Executive Officer (CEO) John Donahoe with a former executive; FedEx (FDX) shares are sinking after the shipping giant slashed its full-year outlook; Apple’s (AAPL) iPhone 16 will be sold in stores globally today—without artificial intelligence (AI) features; and Warner Music Group (WMG) is now planning on a greater number of layoffs in an updated restructuring plan. Here’s what investors need to know today.

1. US Stock Futures Mostly Edging Lower as ‘Triple Witching’ Looms

U.S. stock futures are mostly edging lower as investors brace for the “triple witching” event today, a day after shares rallied following the Federal Reserve‘s jumbo-sized interest-rate cut. The S&P 500 and Dow Jones Industrial Average closed at record highs yesterday, as investors bet the central bank’s aims to manufacture a soft landing amid cooling inflation will lead to more aggressive rate cuts. “Triple witching,” or the simultaneous expiration of stock options, index options, and index futures contracts, often results in greater trading volume and volatility.

2. Nike Stock Jumps as It Replaces CEO With Veteran Executive 

Nike (NKE) shares are jumping 5% in premarket trading after the global shoe and athletic apparel company named veteran executive Elliott Hill its CEO effective Oct. 14, replacing the retiring John Donahoe. Hill, who had retired in 2020, returns to a company that in June reported disappointing fiscal fourth-quarter results and warned of changes to its outlook. Its stock has lost about a quarter of its value from the start of the year. 

3. FedEx Stock Drops as Outlook Disappoints

FedEx (FDX) shares are diving 13% in premarket trading after the company missed analysts’ estimates with its fiscal first-quarter results and slashed its full-year outlook. The shipping firm, which is is losing its contract with the U.S. Postal Service (USPS) this month, said it now anticipates year-over-year revenue growth in the low single digits, down from a low- to mid-single-digit increase, and earnings per share (EPS) of between $17.90 to $18.90, down from $18.25 to $20.25 and below estimates.

4. Apple Selling iPhone 16 Today Without AI Features

Apple’s (AAPL) latest smartphone, the iPhone 16, will be available in stores starting today, following disappointing Wall Street feedback from pre-order data. Potentially weighing on the models’ popularity is that the tech giant’s AI model, Apple Intelligence, won’t be available immediately but will come later as a free software update. Apple shares are down less than 1% in premarket trading.

5. Warner Music Increasing Layoffs in Restructuring Push 

Warner Music Group (WMG) said it is going to increase its planned layoffs as part of an updated restructuring plan aimed at freeing up cash to boost its core music operations. The entertainment company said it would reduce its staffing by about 750 employees, or 13% of its total headcount, from original plans to lay off 600 people, or 10% of its workforce. Warner Music shares were inactive in premarket trading but have lost about 15% of their value this year.

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