Wall Street futures treaded water on Thursday, following hawkish comments from the Federal Reserve in the previous session, while attention turned to quarterly results from growth companies and final quarter GDP data.
The U.S. economy grew at a much better than expected pace to end 2021 though the acceleration likely tailed off as the omicron spread put a damper on hiring and further hindered the global supply chain.
Gross domestic product, the sum of all goods and services produced during the October-through-December period, increased at a 6.9% annualized pace, the Commerce Department reported Thursday. Economists surveyed by Dow Jones had been looking for a gain of 5.5%.
Market Snapshot
At 9:00 a.m. ET, Dow e-minis were up 183 points, or 0.54%, S&P 500 e-minis were up 35.25 points, or 0.81%, and Nasdaq 100 e-minis were up 147 points, or 1.04%.
Pre-Market Movers
Comcast(CMCSA) – The NBCUniversal and CNBC parent earned an adjusted 77 cents per share for the fourth quarter, 4 cents above estimates, with revenue also above analyst forecasts. Comcast also announced an 8% dividend hike and increased its share buyback program to $10 billion. Comcast rose 1.1% in premarket trading.
McDonald’s(MCD) – McDonald’s fell 2% in the premarket after missing top and bottom-line estimates for the fourth quarter. The restaurant operator fell 11 cents shy of consensus with adjusted quarterly earnings of $2.23 per share, hurt by higher expenses.
Blackstone(BX) – The private equity firm’s stock jumped 4% in premarket trading after reporting a better-than-expected quarterly profit. Blackstone reported distributable earnings per share of $1.71, compared with a consensus estimate of $1.37, thanks to strong investment performance and record cash inflows.
Netflix(NFLX) – Investor William Ackman’s Pershing Square bought 3.1 million shares of the video streaming service, saying a recent sell-off in Netflix shares presented an attractive buying opportunity. Netflix gained 4.5% in the premarket.
Tractor Supply(TSCO) – The home improvement and farm supplies retailer reported better-than-expected earnings and revenue for the fourth quarter, raised its quarterly dividend by 77%, and increased its stock buyback program by $2 billion. The stock rallied 3.8% in the premarket.
Tesla(TSLA) – Tesla reported an adjusted quarterly profit of $2.54 per share, 18 cents above estimates, with revenue also topping Wall Street forecasts. Tesla said it would not introduce any new models this year – including its Cybertruck – as it prioritizes deliveries in the wake of ongoing supply chain issues. Tesla fell 1.2% in premarket action.
Intel(INTC) – Intel beat estimates by 18 cents with adjusted quarterly earnings of $1.09 per share and revenue above analyst estimates. Overall profit was down from a year earlier, as the chipmaker ramped up spending on new production facilities and products, and the stock fell 3.3% in premarket trading.
Levi Strauss(LEVI) – Levi Strauss surged 8.3% in the premarket after the apparel company issued an upbeat annual forecast amid strong demand for its jeans and jackets. Levi Strauss beat estimates on the top and bottom lines for the fourth quarter, earning an adjusted 41 cents per share, one cent above estimates.
LendingClub(LC) – LendingClub shares plunged 15.6% in the premarket despite beating top and bottom-line estimates for its latest quarter, as it issued a weaker-than-expected full-year forecast.
Lam Research(LRCX) – Lam Research beat estimates by 2 cents with adjusted quarterly earnings of $8.53 per share. However, the chipmaker’s revenue missed estimates and it issued a weaker-than-expected quarterly forecast amid continuing supply chain issues. Lam shares declined 5.3% in premarket trading.
Seagate Technology(STX) – Seagate Technology jumped 8% in premarket action after the disk drive maker issued an upbeat forecast and raised its long-term profit margin target.
Market News
China's market regulator said on Thursday it had conditionally approved Advanced Micro Devices Inc's (AMD.O) $35 billion all-stock deal for peer Xilinx (XLNX.O).
Tesla Inc has delayed production of its much-awaited Cybertruck, aiming to start in 2023, chief executive Elon Musk said on Wednesday, at a time when rivals are doubling down on efforts to capture the lucrative market.
Facebook’s ambitious effort to bring cryptocurrency to the masses has failed. The Diem Association, the consortium Facebook founded in 2019 to build a futuristic payments network, is winding down and selling its technology to a small California bank that serves bitcoin and blockchain companies for about $200 million, a person familiar with the matter said.
Deutsche Bank delivered its most profitable year in a decade on the back of a dealmaking bonanza, strengthening Chief Executive Christian Sewing's hand as he fine tunes a new strategy and targets for the years ahead in March.
Tencent Holdings Ltd plans to take DouYu International Holdings Ltd private amid disagreements over strategy among executives at the Chinese videogame streaming firm, two people with direct knowledge of the matter said.
Traders are boosting bets for higher borrowing costs, with money markets now expecting five interest-rate increases from the Federal Reserve this year and another four from the Bank of England.