Dow closes nearly 250 points lower, Nasdaq sheds 1% as Alphabet shares slide: Live updates
Stocks closed lower Thursday, giving up early advances as concerns over the Federal Reserve's future moves on monetary policy offset excitement around the latest batch of corporate earnings.
The Dow Jones Industrial Average lost 249.13 points, or 0.73%, to close at 33,699.88. The S&P 500 slid 0.9% to end at 4,081.50. The Nasdaq Composite saw the greatest dip of the three, dropping 1.02% to end the session at 11,789.58.
The three indexes notched session lows in the final hour of trading. At session highs, the Dow advanced more than 300 points, while the S&P 500 and Nasdaq Composite were up 0.9% and 1.4%, respectively.
"Wall Street couldn't keep the upbeat mood," said Ed Moya, senior market analyst at Oanda. "Some traders placed bets that the Fed will have to do a lot more tightening than what Wall Street is pricing in."
Google-parent Alphabet slid more than 4% as investors grew concerned around rising competition in the artificial intelligence space. A 3% decline in Meta also dragged on the technology-heavy Nasdaq Composite.
Investors recently have been monitoring the Fed's commentary as they search for clues on future policy moves following last week's interest rate hike of 25 basis points. On Tuesday, Fed Chair Jerome Powell said that inflation was cooling but there was still a long way to go.
At the same time, Wall Street is in the middle of earnings season. Investors seek insight on how companies have fared amid high inflation and how they expect to perform going forward. Traders initially began the day bidding prices higher after positive earnings from consumer bellwethers Walt Disney and PepsiCo.
Disney shares closed more than 1% lower. Earlier, the stock popped after the entertainment giant posted smaller-than-expected subscriber losses at its streaming service along with earnings and revenue that beat analysts' estimates. CEO Bob Iger said Thursday on CNBC's "Squawk on the Street" that he was only expecting to stay in the role for two years. Meanwhile, activist investor Nelson Peltz said he was ending a proxy battle after the company unveiled a restructuring plan that included 7,000 layoffs and a reorganization of its divisions.
PepsiCo advanced nearly 1% on the back of fourth-quarter earnings that came in above Wall Street expectations.
But despite the latest beats, Wall Street has considered this earnings season lackluster. Nearly 70% of the approximately two-thirds of S&P 500 companies that have reported earnings so far have beaten analysts' expectations, FactSet data shows. That beat rate is below a three-year average of 79%, according to data from The Earnings Scout.
Stocks close lower
The three major indexes closed the session in the red.
The Nasdaq Composite was the worst performer of the three, dropping slightly more than 1%. The S&P 500 and Dow followed, dropping 0.9% and 0.7%, respectively.
— Alex Harring
Ether drops amid fears of SEC crypto crackdown on staking
The price of ether slid more than 3% Thursday afternoon as investors spooked investors mulled over rumors about a potential crypto crackdown in the U.S.
The worries began late Wednesday night after Coinbase CEO Brian Armstrong tweeted about "rumors that the SEC would like to get rid of crypto staking in the U.S. for retail customers." On Thursday afternoon, reports that Kraken has agreed to shutter its crypto staking operations to settle charges with the SEC.
Coinbase shares dropped almost 14%.
Crypto is no stranger to fear, uncertainty and doubt about government crackdowns. So far, the rumor Armstrong addressed is exactly that: a rumor.
For more on what the murmurs of a potential end to staking in the U.S. would mean for Coinbase, Ethereum and the crypto industry as a whole, read our full story on CNBC Pro.
— Tanaya Macheel
Cowen cautious on Lowe's, Home Depot ahead of earnings
Investment firm Cowen is skeptical of Home Depot and Lowe's ahead of the upcoming earnings reports for the home improvement companies.
"We are more cautious into 4Q22 EPS as we see downside risk to comps. We also lower FY23 comps & EPS at both HD and LOW, expect somewhat balanced initial guidance, and for both to remain show me stories in the [near-term]," analyst Max Rakhlenko said in a note to clients on Thursday.
Of the two stocks, Rakhlenko said he prefers Home Depot because of its growing exposure to construction professionals.
Home Depot is scheduled to report its latest results on Feb. 21, while Lowe's will report on March 1.
Cowen says ChargePoint Holdings is a "top pick" going into earnings
ChargePoint Holdings is Cowen's top pick in the electric vehicle charging industry, ahead of the company's fourth quarter earnings announcement.
"Newer products, ease in shipping delays, and a healthy backlog support another quarter of robust top-line growth for CHPT," analyst Gabe Daoud Jr. wrote in a Thursday client note.
He added, "Although risks around supply chain and chip shortages likely persist in '23 (F2024), limiting overall vehicle deliveries and thus charging demand, CHPT remains well placed as a market leader with hardware + subscription-based software solutions for all verticals."
Cowen expects ChargePoint Holdings' top-line growth will be supported by the U.S. and Canada rollout of Mercedes-Benz's charging networks in 2023.
Daoud set his price target at $20, which implies a 64.2% upside from Wednesday's closing price. Shares have rallied almost 30% this year, amidst a 10.35% drop during the past 12 months.
— Hakyung Kim
Stocks notch session lows with less than an hour left of trading
The sell-off intensified with less than an hour left in the trading day.
All three indexes reached session lows. The Dow was down more than 250 points, or 0.8%, while the S&P 500 traded just under 1% down. The Nasdaq Composite, the worst performer of the three, was more than 1.1% down at its new low.
— Alex Harring
'Fast and furious pop' in market could be short-lived, CIO says
The market may have gotten ahead of itself — and the 2023 rally might not last, said Stephanie Lang, chief investment officer at Homrich Berg.
The three major indexes are regaining ground after a down 2022. Leading the way upward is the Nasdaq Composite at 12.8% as investors grow more optimistic on growth stocks. The S&P 500 and Dow followed, adding 6.5% and 1.8%, respectively.
Lang said the gains have been largely driven by investor hopes that the economy can shift from growth without tipping into a recession, which those in the financial world refer to as a "soft landing."
"We saw such a fast and furious pop in the market to start the year, with expectations kind of racing ahead that soft landing is now kind of the expectation," Lang told CNBC. But this week has reminded investors that "it's not baked in, necessarily, that a soft landing is in the cards."
She specifically pointed to gains in the consumer discretionary and technology stocks as evidence the current rally may not be sustainable.
All three indexes are on track for weekly losses, led by the Nasdaq at 1.7%. Meanwhile, the S&P 500 and Dow are poised for respective slides of 1.2% and 0.6%.
The Dow is the only average that has lost value since the start of February.
— Alex Harring
Stocks remain depressed heading into final hour of trading
The three major indexes remained down following a midday slide into negative territory.
The Dow, S&P 500 and Nasdaq Composite were all down around 0.6% as investors readied for the final hour of trading. At their highest, the Dow and S&P 500 each traded up 0.9%, while the Nasdaq Composite advanced nearly 1.4%.
— Alex Harring
Consumer discretionary bucks S&P 500 downturn
Even as the S&P 500 turned red in Thursday trading, the consumer discretionary sector was able to stay trading solidly up.
The sector was up 0.5%. Besides information technology, which was around its flatline, the nine other sectors tall traded down.
MGM Resorts and Wynn International were the sector's biggest gainers, advancing around 7% and 6%, respectively, on the back of earnings reports. Tapestry followed, up nearly 5% follows its earnings report that came in ahead of analyst expectations.
— Alex Harring
Toyota Motor shares up more than 1% after earnings announcement
Toyota shares were up more than 1% on Thursday after the company's third-quarter earnings, revenue, and operating profit beat analyst expectations.
The Japanese automaker announced earnings of 53.40 yen, topping the consensus estimate of 49.55 yen from analysts polled by FactSet. The company's posted 9.755 trillion yen in revenue versus the 9.257 trillion yen anticipated by analysts.
Operating income in the third quarter jumped 22% year-on-year, coming in at ¥956.65 billion.
Meanwhile, Toyota's net profit fell to 745 million yen, from the 819 million yen reported in the same period in the previous year.
Toyota said that a weak Japanese Yen and higher sales volume offset rising prices of materials.
— Hakyung Kim
Google shares fall as Microsoft competition worries persist
Alphabet shares were last down more than 5% as worries over rising competition from Microsoft amid the ongoing artificial intelligence race continued to weigh on investor sentiment.
The move in Google's stock comes after both companies held competing AI events this week, showcasing their plans to tap into the buzzy tech trend that's overtaken Wall Street since the launch of ChatGPT.
It may also signal that some investors aren't as keen on the AI headway Alphabet is making, or Wednesday's demo from the search giant itself.
Despite the reflection in shares, commentary from analysts this week signaled that although Microsoft may be coming out on top in the AI race near term, Alphabet could win out in the long term.
Microsoft shares last traded flat.
— Samantha Subin
Stocks making the biggest moves midday
Here are three companies making headlines in midday trading.
- Sonos — Shares surged 17% after Sonos reported a big beat in its fiscal first-quarter results. The audio products developer posted per-share earnings of 57 cents, compared to consensus estimates of 40 cents per share, according to Refinitiv. Revenue came in at $673 million, greater than forecasts for $580 million.
- MGM Resorts International — The casino operator's stock rallied 8% after reporting fourth-quarter revenue of $3.59 billion, beating estimates of $3.35 billion, according to Refinitiv. Deutsche Bank reiterated its buy rating on the stock, citing strong Las Vegas gaming.
- Tapestry — Shares gained 5% after the luxury fashion company behind Coach and Kate Spade reported a beat analysts' expectations for per-share earnings, excluding items, according to FactSet. Tapestry also raised its fiscal 2023 outlook.
For more movers, check out the full list here.
— Sarah Min
Thursday's rally loses steam
The major averages rolled over around midday, with the Dow now trading roughly 60 points lower, or 0.2%. Earlier in the session, the Dow was up 303 points. The S&P 500 and Nasdaq were also down 0.2%.
— Fred Imbert
GlobalFoundries shares pop on GM deal
GlobalFoundries shares popped more than 3% after the semiconductor manufacturer signed a deal with General Motors for exclusive production capacity of U.S.-made chips.
"The supply agreement with GlobalFoundries will help establish a strong, resilient supply of critical technology in the U.S. that will help GM meet this demand, while delivering new technology and features to our customers," GM executive vice president of global product development Doug Parks said in a statement.
The deal comes as car makers continue to deal with supply chain problems, including a yearslong shortage of chips.
— Fred Imbert, Mike Wayland
Tesla doubles from 52-week low
Tesla has more than doubled from its bear market low.
The electric-vehicle maker's stock hit a low of $101.81 on Jan. 6. That's more than 110% off the session high of $214 the stock hit Thursday.
Tesla's stock has been helped by the reopening in China, the break in rising rates and an improving landscape for growth stocks. The move higher also comes after the company cut prices for some vehicles, setting off what some have called a pricing war in the electric vehicle market.
But some think the rally could die. Jonathan Krinsky, chief market technician at BITG, said the "rally has run its course" in a note to clients Thursday.
The stock traded up more than 4% Thursday.
— Alex Harring
Robinhood gives back post-earnings pop
Shares of Robinhood dipped into the red in late morning trading after opening the day up more than 5%.
The initial gains came despite Robinhood reporting $380 million in fourth quarter revenue, below the $397 million expected from analysts, according to Refinitiv.
Several Wall Street analysts pointed to improvements in metrics that could lead to profits down the line, such as operating expenses and average revenue per user, as positives in the quarter.
However, Robinhood still had a net loss of $166 million for the quarter and saw monthly active users decline.
— Jesse Pound
Third Point takes stake in Salesforce, becoming fifth activist in the software firm
Dan Loeb's Third Point has taken a stake in Salesforce, becoming the fifth activist investor with a position in the software company, CNBC's Scott Wapner confirmed. The stake was first reported by The Wall Street Journal.
Shares of Salesforce rose more than 2% following the news. The firm, which is experiencing slowing growth, has attracted action from other activists including Elliott Investment Management, Starboard Value, ValueAct Capital and Jeff Ubben's Inclusive Capital.
— Yun Li
Wall Street hopes IPO market is thawing
Wall Street just pulled off its biggest IPO in four months, giving bankers hope that the market for newly-listed company shares is stirring to life.
The solar technology firm Nextracker raised $638 million by selling about 15% more shares than expected, sources told CNBC Wednesday.
The listing, which began trading Thursday, shows that the stock market's rebound this year is reviving appetite for new companies from mutual fund and hedge fund managers, said Michael Wise, JPMorgan Chase's vice chairman for equity capital markets.
It comes as Wall Street's so-called IPO window, which allows companies to readily tap investors for new stock, has been mostly shut for the past year.
— Hugh Son
Activist investor Peltz says Disney proxy fight is done
Activist investor Nelson Peltz has dropped his proxy fight against Disney after the company revealed a plan to reorganize its business, cut 7,000 jobs and slash costs by $5.5 billion.
"Now Disney plans to do everything we wanted them to do," he told CNBC's "Squawk on the Street" Thursday. "We wish the very best to Bob [Iger], this management team and the board. We will be watching. We will be rooting."
Peltz' Trian Fund Management launched a proxy fight against the media giant last month. He slammed Disney for its acquisition of Fox and its failed succession planning, while pushing for a seat on the board.
A slew of analysts also approved of the company's cost-cutting plans, viewing the initiatives as a way improve profitability long term. One analyst said the plans are "restoring the magic."
Shares were last up nearly 3%.
— Samantha Subin
Disney CEO Bob Iger says he plans to stay for two years
Disney CEO Bob Iger said in an appearance on CNBC's "Squawk on the Street" Thursday that he plans to stay only two years.
"Well, my plan is to stay here for two years, that's what my contract says, that was my agreement with the board, and that is my preference," Iger told CNBC's David Faber.
Those remarks follow Iger's first earnings report since returning to Disney in November. On Wednesday, Disney announced that it would slash 7,000 jobs, and cut $5.5 billion in costs in a massive restructuring of the company.
Additionally, Iger said he plans to help the board find a new successor following the ouster of Bob Chapek last year.
— Sarah Min, Lillian Rizzo
Wynn and MGM results show Vegas is starting to sizzle, analysts say
Fourth-quarter results for both Wynn Resorts and MGM Resort International show that Las Vegas is heating up, according to Wall Street analysts.
Both casino operators reported revenue that beat expectations, with Wynn's $1 billion coming above Refinitiv's estimate of $958 million and MGM's $3.59 billion topping estimates of $3.35 billion.
Several analysts cheered the results, with Jeffries titling its report on Wynn's earnings, "Las Vegas Is Starting to Sizzle."
"The strength in Las Vegas coupled with the early stage recovery in Macau are supportive of the strong momentum of late. The commentary supports further positive progression in estimates for both markets, which we believe should drive a positive reaction in the shares," analyst David Katz wrote in a note Tuesday.
Meanwhile, Deutsche Bank hiked its price target on Wynn to $128 per share from $106, as well as its price target on MGM to $53 from $49 per share.
"We believe the 2023 outlook for Las Vegas remains solid, with near-term strength evident in bookings. We see the return of capital story as compelling and differentiated, with the equity value creation from Macau accelerating," analyst Carlo Santarelli said in a note Thursday.
Shares of Wynn were up more than 6%, while MGM rose nearly 8%.
— Michelle Fox
Aerospace and defense ETF notches high not seen since 2020
The iShares U.S. Aerospace & Defense ETF hit a high not seen since 2020.
The ETF gained 0.5% to reach $115.69. That's its highest level since Feb. 21, 2020.
It's also up 1.5% so far this week and 3% since the start of the year. The ETF is 26% higher than its 52-week low, which was hit in September.
— Nick Wells, Alex Harring
Roth downgrades DraftKings after 55% rally to start the year
Shares of sports gaming company DraftKings were down slightly after being downgraded to sell from neutral at Roth Capital Partners.
Analyst Edward Engel said in a note to clients that DraftKings was likely in for a rough first half of 2023 as new states legalizing sports betting and the potential addition of Fanatics as a competitor could lead to more promotions for customers and shrinking margins.
The downgrade comes after a sharp rally for the stock, which has gained 55% year to date.
Stocks open up
Stocks opened in the green, coming off a down Wednesday.
The Dow was up more than 200 points, or 0.7%, shortly after open. The S&P 500 and Nasdaq Composite added 0.8% and 1%, respectively.
— Alex Harring
MGM, Wynn shares rise as analysts cheer stocks
Wynn Resorts and MGM Resorts International jumped in the premarket as Wall Street lauded the travel-and-casino stocks coming off their recent earnings.
Wynn added 5.4% after it posted $1 billion in revenue for the fourth quarter, ahead of the $958 million expected by analysts polled by Refinitiv.
MGM advanced 6.7% after also beating revenue expectations, reporting $3.59 billion compared with the $3.35 billion analysts anticipated. But the company did see a bigger loss in earnings per share than expected at $1.53 against Refinitiv's $1.36 estimate.
Analysts are increasingly optimistic about the stocks coming off earnings. Jefferies said Wynn's results showed that "Vegas is Starting to Sizzle," while Deutsche Banks also noted Las Vegas' strong gaming business when reiterating it buy rating on MGM.
The stocks have been closely followed amid news of rolled back Covid protocols that are expected to aid the companies' businesses in Macao, a Chinese region known for its gambling offerings.
— Michelle Fox, Contessa Brewer, Alex Harring
Market optimism hits highest point since late 2021, AAII survey shows
The 2023 stock market rally has investors feeling their most confidence since last year's market stumble began, a widely followed sentiment survey shows.
Those expecting the market to be higher over the next month totaled 37.5%, according to the American Association of Independent Investors poll, which was updated Wednesday. That's the highest level since Dec. 30, 2021, when market bulls made up 37.7% of survey respondents.
Bearishness in the latest survey totaled 25%, which was the lowest reading since Nov. 11, 2021.
While the survey shows optimism growing, the spread between bulls and bears nevertheless reflects a cautious attitude. That gap of 12.2% is on the low side of "neutral" and just a touch above "fearful," according to the AAII's spread indicator.
By contrast, the bull-bear spread six months ago was at 28 percentage points, which falls well within the association's "greedy" indicator.
Sentiment surveys like the AAII reading generally serve as contrarian indicators — when sentiment swings strongly in one direction, it's often best to move the other way as extremes represent either sharply overbought or underbought conditions.
Jobless claims rose last week more than expected
First-time filings for unemployment benefits rose more than expected last week but held at comparatively low levels.
Jobless claims for the week ended Feb. 4 totaled 196,000, an increase of 13,000 from the previous period and above the Dow Jones estimate for 190,000. It was the fourth week in a row that claims were under 200,000 after the most recent peak of 241,000 in mid-November.
Continuing claims also rose, up 38,000 to 1.688 million, a number that has trended higher since the beginning of the year.
Markets showed little initial reaction to the claims data.
Stocks making the biggest premarket moves
These are the names making the biggest moves in the premarket:
- Tapestry — The Coach-parent reported adjusted fiscal second-quarter earnings of $1.33, beating StreetAccount's estimate of $1.27, and raised its fiscal 2023 earnings outlook. Tapestry rallied nearly 9%.
- Hilton Worldwide — The hotel operator's adjusted fourth-quarter earnings of $1.59 per share topped estimates of $1.22, per StreetAccount. Its revenue of $2.44 billion also came above the $2.35 billion expected. Hilton was up 1% in the premarket.
- Tesla — The electric-vehicle maker gained more than 3%, a day after being cleared from blame in the crash of one of its vehicles in Texas. Earlier this week, CEO Elon Musk said he would unveil his "Master Plan 3" at investor day March 1.
For more big premarket movers, check out the full story here.
— Michelle Fox
RBC Capital Markets downgrades Affirm, cites murky macro picture
A difficult macro environment with more pain likely ahead is enough of a reason to hold off on buying shares of Affirm in the near-term, according to RBC Capital Markets.
Analyst Daniel Perlin downgraded the buy-now-pay-later company to sector perform from outperform after the company posted a disappointing earnings report and shared plans to cut its workforce by 19%
Shares were last down more than 17% before the bell.
Read more on the downgrade from RBC here.
— Samantha Subin
Mattel falls 10% following worst-than-expected earnings report
Mattel dropped more than 10% in after-hour trading after the toy maker missed analyst expectations in its holiday quarter.
The company reported 18 cents in adjusted earnings per share, under the 29 cents expected by analysts polled by Refinitiv. Revenue also missed expectations, with the company recording $1.4 billion compared with $1.68 billion anticipated by analysts.
CEO Ynon Kreiz said the broader economy had left the company in a more challenging environment than it had hoped for its holiday quarter.
— Alex Harring, Rebecca Picciotto
PepsiCo rises in premarket after earnings come in better than expected
PepsiCo gained more than 1.5% before the bell on the back of earnings that beat Wall Street expectations.
The snack-and-drink maker, known for brands such as Pepsi and Doritos, reported adjusted per-share earnings at $1.67 for the quarter, ahead of the consensus estimate of $1.65 from analysts polled by Refinitiv. Revenue came in at $28 billion, topping the $26.84 analysts anticipated.
— Alex Harring, Amelia Lucas
Analysts praise Disney after earnings and unveiling of cost-cutting plans
Many analysts reiterated their bullish stances on Disney after the media giant unveiled its latest quarterly results along with a plan to cut costs going forward.
"Bob Iger laid out a plan for cost cuts, content and streaming rationalization and ultimately improved profitability," said Wells Fargo's Steven Cahall in a Wednesday note to clients. "An execution story is a cleaner catalyst path, and the shares should track higher on confidence + estimates."
— Samantha Subin
Credit Suisse posts massive annual loss, CEO describes results as ‘completely unacceptable’
Credit Suisse on Thursday reported a fourth-quarter and annual net loss that missed expectations, as the Swiss bank continued with its huge strategic overhaul.
The lender's fourth-quarter net loss attributable to shareholders came in at 1.4 billion Swiss francs ($1.51 billion), worse than analyst projections of a loss 1.32 billion Swiss francs, according to Eikon.
Credit Suisse is telegraphing another "substantial" full-year loss in 2023 before returning to profitability in 2024.
CEO Ulrich Koerner told CNBC on Thursday that the full results were "completely unacceptable," but underscored the need for the ongoing multi-year transformation program.
— Elliot Smith
CNBC Pro: Morgan Stanley says EU and U.S. subsidies to boost this global green hydrogen stock that is up 35% this year already
Morgan Stanley has said shares of a green hydrogen producer are expected to rise thanks to the latest set of green subsidies in both the U.S. and Europe.
The investment bank said the company would benefit as green hydrogen is set to become a "key beneficiary" of cleantech stimulus plans on both sides of the Atlantic.
The push for green energy has gained fresh impetus after the U.S. unveiled its $365 billion subsidy program through the Inflation Reduction Act last year. In response, the European Union announced its Green Deal Industrial Plan earlier this year.
CNBC Pro subscribers can read more here.
— Ganesh Rao
Tighter bank lending standards could lead to greater risk for high yield companies, says LPL's Gillum
Some companies could struggle to fulfill their existing debt as banks continue tightening their lending standards on commercial and industrial loans, LPL fixed income strategist Lawrence Gillum said in a Wednesday report.
The Federal Reserve reported earlier this week that lending officers at major domestic banks raised the threshold for commercial and industrial firms seeking credit, and that prospective borrowers also reduced their demand for loans. Commercial and industrial, or C&I loans, are short-term loans given to businesses that are often backed by company collateral. These loans are an important funding source for lower-rated companies, Gillum said, because borrowing, or issuing equity shares, can sometimes be too restrictive and costly.
According to Gillum, tighter lending could lead to higher bond yields and spreads for some companies. This increases the risk of high-yield companies defaulting on their payments and not having access to emergency financing from C&I loans if needed. That risk is only exacerbated if the economy contracts this year, Gillum added.
"While we like high yield from a strategic perspective (for investors with a longer-term time horizon), we would caution investors interested in allocating new assets to the space, as there will likely be increased volatility in the near term," Gillum wrote.
– Pia Singh
Latest earnings reports show consumers are willing to spend on experiences
Wednesday evening earnings reports are showing more evidence of consumers spending on experiences.
Revenues for Disney's parks and experiences business topped expectations as guests flocked to the parks during the holidays, according to the company, who also cited "increased guest spending." CEO Bob Iger said on the call, demand for parks is "extraordinary right now," but it wouldn't be smart to let more people in and dilute the guest experience or charge more for tickets.
Casino and hotel operators MGM and Wynn saw a similar trend. AT MGM:
- Rooms revenues soared 46%
- Average daily rates spiked 30%
- And occupancy was at 91%
Meanwhile, at Wynn:
- Vegas casino revenues were up 17%
- Room revenues jumped 20%
- Entertainment and retail revenues skyrocketed 36%
- Average daily rates rose 12%
- Occupancy hovered around 90%
— Robert Hum, Tanaya Macheel
Stocks making the biggest moves after hours
These are the stocks making the biggest moves in extended trading:
- Affirm — The buy now, pay later company slid 19% in extended trading as fiscal second-quarter earnings and revenue missed analysts' estimates, according to Refinitiv. CEO and founder Max Levchin also announced layoffs equal to 19% of the workforce effective immediately.
- Mattel — Shares tumbled 12% after the company said shoppers bought fewer toys this holiday season and fourth-quarter sales fell 22% from the prior year.
- Disney — Shares rose more than 5% after the company reported a smaller-than-expected drop in subscribers, as well as a beat on the top and bottom lines. CEO Bob Iger also announced Disney would be slashing 7,000 jobs as part of a cost-cutting and reorganization plan.
For further details and more big movers check out the full story here.
— Tanaya Macheel
Stock futures open flat
Stock futures were little changed to begin trading Wednesday evening.
Dow Jones Industrial Average futures rose 27 points, or 0.08%. S&P 500 futures were just above the flat line at 0.01% and Nasdaq 100 futures advanced slightly by 0.04%.
— Tanaya Macheel