What to watch today: Nasdaq futures sink as Facebook plunges over 20% after weak earnings
BY THE NUMBERS
Nasdaq futures sank more than 2% on Thursday, dragged down by an over 20% premarket decline in shares of Meta Platforms (FB), the morning after the Facebook parent reported weak earnings and lower guidance. (CNBC)
The Dow on Wednesday rose 0.6%, while the S&P 500 and Nasdaq gained nearly 1% and 0.5, respectively. All three stock benchmarks logged four straight sessions of gains. However, the Nasdaq remained in correction territory. Amazon and Ford are scheduled to report earnings after the bell Thursday. (CNBC)
Meta's quarterly miss on its bottom line was only the third time that has happened in the Facebook parent's nearly decade history as a public company. Meta blamed its cautious outlook on factors including a decline in user engagement and rising inflation taking a toll on advertiser spending. (CNBC)
* Facebook says Apple iOS privacy change will result in $10 billion revenue hit this year (CNBC)
* Cramer's Investing Club: We’re keeping our small position in Facebook (CNBC)
Other social media stocks, including Snap (SNAP) and Twitter (TWTR), also fell sharply in Thursday's premarket. Spotify (SPOT), which has been embroiled in a controversy over podcaster Joe Rogan, dropped nearly 9% in the premarket after the audio streamer late Wednesday announced a slowdown in premium subscriber growth as part of mixed fourth-quarter financial results. (CNBC)
* PayPal stock closes down 24% in worst-ever trading day (CNBC)
* Cramer's Investing Club: PayPal’s future prospects make the banged-up stock a buy (CNBC)
IN THE NEWS TODAY
Shares of Dow component Honeywell (HON) dropped 3.5% in the premarket after the company on Thursday reported mixed fourth-quarter results, beating estimates on earnings and missing on revenue. Honeywell issued forecasts for full-year earnings and revenue that were light of what analysts had been expecting. (CNBC)
Dow stock Merck rose 1% in the premarket after the drugmaker on Thursday reported better-than-expected earnings and revenue for the fourth quarter. Merck said its full-year guidance includes expected sales of $5 billion to $6 billion from Covid pill molnupiravir, developed with Ridgeback Biotherapeutics. (CNBC)
One day after ADP reported that U.S. companies unexpectedly cut 301,000 jobs in January due to the omicron variant surge, the Labor Department reported 238,000 initial jobless claims for the week ended Jan. 29. That's lower than the previous week and not as many as had been forecast. (CNBC)
Friday brings the government's January employment report, with estimates for nonfarm payrolls growth of 150,000 jobs. However, Wall Street is starting to wonder whether those additions might be lower or even decline. (CNBC)
The Senate Banking Committee will hold a hearing Thursday on President Joe Biden's nomination of Sarah Bloom Raskin to be the next Federal Reserve vice chair for supervision. Raskin has become a lightning rod for criticism from business groups and fiscal conservatives. (Reuters)
U.S. forces killed the leader of terrorist group ISIS, Abu Ibrahim al-Hashimi al-Qurayshi, during a counterterrorism operation in Syria, the White House said Thursday. President Joe Biden is slated to address the nation on the details of the raid at 9:30 a.m. ET from the White House. (CNBC)
One of the most popular bridges linking the ethereum and solana blockchains lost more than $320 million Wednesday afternoon in an apparent hack. It's decentralized finance's second-biggest exploit ever, just after the $600 million Poly Network crypto heist. (CNBC)
* FBI confirms it bought spyware from Israel’s NSO Group (AP)
Jeff Zucker resigned as CNN president Wednesday for failing to disclose a romantic relationship with a high-ranking colleague who once served as communications director to ex-New York Gov. Andrew Cuomo. Zucker wanted to stay in the role temporarily, but he faced a possible firing if he did not step down, the network's journalists reported, citing two people involved in the matter. (CNBC)
A major winter storm with millions of Americans in its path spread rain, freezing rain and heavy snow further across the country on Thursday, disrupting travel as roads in many states were left icy by the wintry mix and airlines canceled thousands of flights due to the weather. (AP & FlightAware)
STOCKS TO WATCH
Eli Lilly (LLY) beat estimates by 3 cents with adjusted quarterly earnings of $2.49 per share, while revenue beat forecasts as well. Results were boosted by a jump in sales of Lilly's Trulicity diabetes drug and Covid therapies. However, the stock slid 1.1% in the premarket.
Biogen (BIIB) Fell 2.8% in premarket action after the drugmaker issued a lower than expected 2022 adjusted earnings forecast. Biogen expects sales of Alzheimer's drug Aduhelm to be minimal following the government's move to limit Medicare coverage of the drug. Biogen reported better-than-expected profit and revenue for the fourth quarter.
Cardinal Health (CAH) fell 2.1% in the premarket after it cut its full-year forecast due to inflation pressures and supply chain constraints. The pharmaceutical distributor beat estimates by 4 cents for its latest quarter, earning an adjusted $1.27 per share.
T-Mobile US (TMUS) earned 34 cents per share for its latest quarter, more than doubling the 15-cent consensus estimate, though the mobile service provider's revenue fell short of analyst forecasts. T-Mobile also issued an upbeat forecast, and the stock soared 7.7% in the premarket.
Align Technology (ALGN) fell 2.6% in premarket trading after the maker of Invisalign dental braces said 2022 revenue would rise by 20% to 30% compared with the prior year's growth of 60%. Align also beat top and bottom-line estimates for its latest quarter as volume sales for its aligners rose.
McKesson (MCK) rallied 4.5% in the premarket after the pharmaceutical distributor reported better-than-expected top and bottom-line results. McKesson earned an adjusted $6.15 per share compared with a consensus estimate of $5.42, helped by the strength of its Covid-19 vaccine distribution business.