Market Overview - US equity futures are flat, with S&P and Nasdaq 100 futures both up 0.1% as the market anticipates weaker payroll data following a Retail Sales miss and weaker high-frequency data [1] - International markets show mixed trends, with Japan closed, KOSPI up 1%, and HSI up 0.3%, while European markets are mostly flat to down [1] - Commodities are moving higher, led by silver, with crude oil prices quietly rising [1] Company Performance - In premarket trading, Mag 7 stocks are mixed, with Nvidia up 0.6% and Tesla down 0.2% [3] - Astera Labs falls 11% after reporting disappointing fourth-quarter results and announcing the retirement of its CFO [3] - Beta Technologies climbs 18% after Amazon disclosed a stake in the electric aircraft manufacturer [3] - Centrus Energy falls 8% as its fourth-quarter earnings per share missed analyst estimates due to higher-than-expected capex spending [3] - Cloudflare gains 14% after beating fourth-quarter expectations and providing a bullish revenue forecast [3] - Humana falls 6% after forecasting full-year profit below Wall Street expectations, raising concerns about the US health-insurance industry [3] - Kraft Heinz drops 6% after pausing its planned separation as the new CEO seeks to improve results [3] - Lyft falls 17% after issuing a disappointing forecast that missed Wall Street expectations [3] - Mattel slumps 26% after its 2026 adjusted earnings-per-share forecast missed analyst estimates, leading to a downgrade at JPMorgan [3] - Moderna falls 10% after US regulators refused to review its novel mRNA flu vaccine [3] - Rapid7 declines 22% after a disappointing outlook, with analysts citing weakness in annual recurring revenue [3] Earnings Reports - Out of 326 S&P 500 companies that have reported, 78% have beaten analyst forecasts, while 17% have missed [11] - T-Mobile, Shopify, and Kraft Heinz are among companies expected to report before the market opens [11] Economic Indicators - Analysts expect January's payrolls report to show 65,000 job additions, with a whisper number of 35,000, amid expectations of a significant downward revision of 750,000 to 900,000 jobs through March 2025 [4][25] - The unemployment rate is expected to remain steady at 4.4% [25] - The market is currently pricing in two or three Fed rate cuts this year, with a growing probability of a cut by April [5][38]

Core Viewpoint - B&M's finance chief Mike Schmidt resigned following an accounting error that led to the company's second profit warning in a month, resulting in a significant drop in share value and revised profit forecasts [1][2][3]. Financial Impact - The accounting mistake caused B&M to overstate profits, leading to a revised full-year profit expectation of £470 million to £520 million, down from the previous forecast of £510 million to £560 million [2]. - Following the announcement, B&M's shares plummeted over 20%, reducing the company's market value by £400 million to £1.7 billion [2]. Management Changes - Mike Schmidt, who joined B&M three years ago, will remain until a replacement is found [3]. - This resignation marks a significant challenge for CEO Tjeerd Jegen, who is attempting to stabilize the company amid declining demand [5]. Operational Issues - The accounting error was attributed to an IT upgrade that resulted in the finance team failing to input £7 million worth of freight costs into the new system [4]. - B&M plans to hire investigators to review the circumstances surrounding the error [4]. Market Conditions - B&M had already lowered its profit forecasts earlier in the year due to an "uncertain economic outlook" and weaker demand in British stores [5]. - Analysts expressed concerns that the recent profit downgrade could undermine B&M's credibility and hinder its turnaround efforts [7]. Strategic Response - In response to the challenges, B&M has committed to cutting prices and streamlining its product range to attract customers back to its stores [6].

Shares in B&M fell more than 19% on Monday after the UK discount retailer admitted a £7 million accounting error that will hit its earnings and trigger a leadership change. The company said that overs... ...

B&M finance chief steps down, home asking prices barely budge and we speak to Met Office CEO Penny Endersby -- get briefed ahead of your morning calls with The London Rush https://t.co/1esgpGCvWZ ...

B&M cut its guidance again just two weeks after issuing a profit warning https://t.co/OcfLYBS5fk ...

Core Insights - B&M has announced that its annual profits for 2025 will be lower due to a decline in UK sales and has introduced a turnaround plan focused on price reductions [1] - The "Back to B&M Basics" strategy aims to enhance the company's value proposition and return UK like-for-like (LFL) sales to sustainable growth [2] Financial Performance - B&M reported group revenue of £2.75 billion for the first half of fiscal 2026, marking a 4% increase from the previous year [2] - The UK unit generated £2.2 billion in revenue, with LFL sales increasing by 0.1% in the first half, driven by growth in general merchandise despite a decline in fast-moving consumer goods [2] - However, LFL sales in the UK fell by 1.1% in the second quarter, which was below company expectations [2] Turnaround Strategy - The turnaround plan includes cutting prices on key value items, rebooting "manager's specials promotions," slimming and refocusing product ranges, and improving on-shelf availability [1] - These strategic actions are expected to take up to 18 months to show results [1] Future Projections - B&M forecasts full-year adjusted earnings before interest, taxation, depreciation, and amortisation (EBITDA) between £510 million and £560 million, representing a potential decline of up to 18% year-on-year [3] - The company anticipates that LFL sales will be the main driver of performance within the projected EBITDA range, with expectations of low-single-digit negative to positive growth in the second half of the year [4] Store Operations - B&M operates a total of 786 stores in the UK, along with 344 Heron Foods and B&M Express outlets, and 140 stores in France [4]

B&M plummeted after the UK discount retailer said it may take as long as 18 months to fix all the company’s "operational weaknesses" https://t.co/2k2BB8OXbM ...

Discount retailer B&M on Tuesday forecast a 28% plunge in first-half core earnings and lower annual profit, and said it would take actions including price adjustments to return its UK sales to growth. ...