Today's stock market outlook: Russia-Ukraine conflict leads to potential drop in stocks.
BY THE NUMBERS
On Thursday, U.S. stock futures fell as NATO accused Russia of increasing its forces at the Ukraine border instead of reducing them. Wall Street was also dealing with strong earnings from two Dow stocks and mixed economic reports. In a volatile session on Wednesday, the S&P 500 dipped and the Nasdaq inched higher. (CNBC)
On Thursday, WMT exceeded quarterly earnings and revenue estimates. The company stated that it is on track to achieve its long-term growth targets, which include mid-single digit adjusted earnings per share growth. Walmart's Dow stock increased by approximately 2% in the premarket following the announcement. Additionally, the company announced a dividend increase and plans for $10 billion in buybacks. (Source: CNBC)
Cisco Systems, a Dow component, rose approximately 3% in Thursday's premarket after reporting quarterly earnings and revenue that exceeded estimates. The company also issued optimistic full-year guidance. Nvidia, another Dow component, fell around 2.5% in the premarket after issuing strong outlook that failed to impress investors. However, the company reported better-than-expected quarterly earnings and revenue. DoorDash's per-share quarterly loss was wider than expected, despite reporting a slight beat in revenue. Cathie Wood, a prominent investor, purchased more than $20 million of Roblox during a massive sell-off.
IN THE NEWS TODAY
Russia has been accused by NATO allies of misleading the world by claiming it was returning troops to bases, but in reality, it has added as many as 7,000 more troops near its tense border with Ukraine. Meanwhile, Ukraine has denied Russian state-controlled media's claims that it launched shells in eastern Ukraine and accused Moscow-backed rebels of attacking a village in the region. The two countries currently have a cease-fire agreement in place.
The CDC is considering lifting mask mandates, according to its director.
FAA Administrator Steve Dickson, who led the agency after two fatal 737 Max crashes, has resigned, effective March 31. Dickson made this decision halfway through his five-year term. In an email to staff, he stated that after spending long periods away from his family, it was time for him to focus on them fully. (Reuters)
The National Highway Traffic Safety Administration has launched an investigation into Tesla (TSLA) after receiving complaints that its cars can suddenly stop on highways without any apparent reason. According to documents posted on Thursday, the vehicles are capable of unexpectedly braking at high speeds. (AP)
Amazon has reached a global agreement with Visa to settle a dispute over credit card fees, allowing customers in the U.K. to continue using Visa credit cards. Additionally, Amazon will drop a 0.5% surcharge on Visa transactions in Singapore and Australia. Activist investor Daniel Loeb sees roughly $1 trillion of untapped value in Amazon, while Hasbro's activist wants the toy company to spin off its Wizards of the Coast unit. (WSJ)
STOCKS TO WATCH
In the fourth quarter, AutoNation (AN) surpassed the consensus estimate of $4.96 per share with an adjusted earnings of $5.76 per share. Additionally, revenue exceeded expectations due to a 55% increase in used vehicle sales. As a result, AutoNation shares experienced a 3% increase in premarket trading.
Palantir's adjusted profit of 2 cents per share was half of what analysts predicted, although revenue exceeded forecasts.
The travel review site operator's unexpected quarterly loss and revenue shortfall caused it to tumble in the premarket. Despite this, the company expects significant improvement in the travel market in 2022, following what it referred to as "unexpected periods of virus resurgence" in 2021.
Fastly's stock price dropped by approximately 32% in the premarket after the company issued lower-than-expected 2022 guidance. Despite reporting a narrower-than-expected fourth-quarter loss and revenue that exceeded consensus estimates, Fastly's stock price still declined.
Despite earnings coming in below forecasts, Cheesecake Factory's stock price jumped 4% in the premarket. Although the company experienced a revenue beat, increased input costs negated it. However, Cheesecake Factory is planning to raise prices in its new menus and may do so again later this year.
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