Stocks Face Pressure from Rising Bond Yields, Meta Platforms Considers Ad-Free Subscription Model

Stock futures showed a modest increase on Tuesday, as equities continued to face pressure from rising bond yields. Here are the key developments in the market:

1. Meta Platforms, the parent company of Instagram and Facebook, is reportedly considering a proposal to charge European users nearly $14 per month for ad-free versions of its platforms. This move comes as Meta aims to navigate European Union privacy rules. If users decline to pay for the ad-free experience, Meta would utilize their digital activity to target ads. Meta shares rose by 0.4% in response to this news.

2. Ford and General Motors have announced additional layoffs, affecting approximately 500 workers combined. These layoffs are a result of the ongoing strike by the United Auto Workers, which has forced the automakers to idle more factories. General Motors also received a counteroffer from the UAW in response to the company’s most recent proposal. Both Ford and General Motors saw a 0.2% increase in premarket trading.

3. Oddity Tech, a beauty-products company, expects its third quarter to be its strongest ever. The company forecasts year-over-year net revenue growth between 29% and 31%, surpassing its initial guidance of 18% to 23%. Additionally, Oddity Tech anticipates a gross margin of 68.5%, approximately 100 basis points higher than its previous guidance. As a result, the company’s stock jumped by 11%.

4. WK Kellogg, which houses the North America cereals business, received a Sell rating and a price target of $11 from analysts at Goldman Sachs. Following the spinout of WK Kellogg and Kellanova from the former Kellogg, WK Kellogg’s stock declined by 9.1%, while Kellanova fell by 6%. Earnings reports are expected from McCormick, the parent company of flavor brands such as French’s and Frank’s RedHot, and Cal-Maine Foods, the largest producer of eggs in the U.S.

While stocks continue to face pressure due to rising bond yields, these developments highlight the ongoing dynamics in the market. Investors will closely monitor the outcomes of these events to gauge their impact on the respective companies and the broader market.