Lululemon, Micron, and UBS lead premarket surge in stocks.
Lululemon shares surged over 16% after reporting strong holiday quarter earnings and upbeat guidance for the current fiscal year. Carnival Corp was upgraded to positive by Susquehanna, while UBS downgraded major apparel and home goods retailers including Urban Outfitters, Burlington, Foot Locker, and Ross Stores to sell from neutral. Bath & Body Works also saw a downgrade from UBS, citing a recessionary environment. Micron Technology added 2.6% after missing Q2 expectations and announcing a larger-than-anticipated headcount reduction. Paychex Inc. shares were up nearly 3% ahead of fiscal Q3 earnings due after the close on Wednesday. UBS shares rose 2.7% after announcing former CEO Sergio Ermotti will replace current CEO Ralph Hamers.