U.S. stock indexes were set to rise on Friday as news of talks between the United States and Russia over tensions in Ukraine calmed investor nerves.
Market Snapshot
At 8 a.m. ET, Dow e-minis were up 144 points, or 0.42%, S&P 500 e-minis were up 23 points, or 0.53%, and Nasdaq 100 e-minis were up 99 points, or 0.7%.
Pre-Market Movers
DraftKings Inc. (DKNG) – The sports betting company’s stock tumbled 13.2% in the premarket, despite a narrower-than-expected quarterly loss and revenue that beat estimates. DraftKings projects a wider-than-expected adjusted loss for the full year as costs continue to rise.
Roku Inc (ROKU) – Roku shares were down 26% in the premarket, despite better-than-expected earnings for its latest quarter. The maker of video streaming devices’ revenue fell short of analyst forecasts, and it issued a weaker-than-expected outlook due to higher component prices and supply chain disruptions.
Bloomin (BLMN) – The restaurant operator beat estimates by 8 cents with an adjusted quarterly profit of 60 cents per share, with revenue slightly above consensus. The parent of Outback Steakhouse and other chains also reinstated its quarterly dividend and announced a new $125 million share buyback program. The stock surged 6.6% in premarket action.
John Deere (DE) – The heavy equipment maker reported quarterly earnings of $2.92 per share, well above the $2.26 consensus estimate, with revenue also topping analyst forecasts. The company also raised its annual profit forecast amid solid demand and higher prices.
Shake Shack (SHAK) – Shake Shack reported an adjusted quarterly loss of 11 cents per share, narrower than the 11-cent loss analysts were anticipating, while the restaurant chain’s revenue matched Wall Street forecasts. Shake Shack said the omicron variant kept customers away and led to some temporary restaurant closures. It also issued a downbeat current-quarter forecast amid increasing costs. Shake Shack plunged 15.5% in premarket trading.
Dropbox Inc. (DBX) – Dropbox beat estimates by 4 cents with adjusted quarterly earnings of 41 cents per share, and the software company’s revenue also topped Street projections. Paid user numbers and average revenue per user also came in above consensus, but the stock slid 6.3% in premarket action as its guidance for current-quarter profit margin was slightly lower than expected.
DuPont (DD) – DuPont finalized a deal to sell the majority of its materials unit to specialty materials maker Celanese (CE) in an $11 billion deal. DuPont jumped 4.1% in the premarket while Celanese gained 3.8%.
Pilgrims Pride (PPC) – Pilgrim’s Pride slumped 14.8% in premarket trading after Brazilian meatpacker JBS dropped plans to buy the portion of the poultry producer that it doesn’t already own. JBS holds an 80% stake in Pilgrim’s Pride, but the two sides could not agree on terms of a deal for the remaining 20%.
Intel (INTC) – Intel Chief Executive Officer Pat Gelsinger told an investor gathering that the chipmaker is aiming to achieve double-digit annual revenue growth in three to four years. Gelsinger also said Intel may be interested in participating in a potential consortium if one is formed to buy British semiconductor company Arm Ltd. Intel fell 1% in premarket trading.
NortonLifeLock Inc. (NLOK) – NortonLifeLock pushed back the expected completion date of its deal to buy rival cybersecurity company Avast to April 4 from Feb. 24, saying it was still waiting for regulatory approvals in the U.K. and Spain. NortonLifeLock fell 1% in the premarket.
Market News
Ford Motor Co and China’s Geely Automobile-owned Volvo Cars have partnered with Tesla Inc co-founder JB Straubel’s RedwoodMaterials for an electric vehicle battery recycling venture program in California.
Berkshire Hathaway Inc. “had no prior knowledge” of Microsoft Corp.’s plans to acquire Activision Blizzard Inc. before the conglomerate took a stake in the gaming giant last year, billionaire Warren Buffett said.
An Australian state ordered Amazon.com Inc on Friday to pay a minimum rate to freelance delivery drivers, a decision hailed by a union as making it the world's first jurisdiction to compel the retailer to follow government rules on such payments.
Tesla plunged seven spots to No. 23 in the overall ranking of best car brands. The drop was mainly due to the difficult-to-use yoke steering wheel the automaker recently debuted on the updated version of those models. Consumer Reports said the steering wheel was enough of a problem to lower their road-test scores.
DuPont said on Friday it would sell most of its mobility and materials business for $11 billion to Celanese Corp, as the industrial materials maker continues to tweak its portfolio to focus on high-margin operations.
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