Business

What to Watch Today: Futures Steady With Earnings, Rising Bond Yields in Focus

Traders on the floor of the NYSE, April 14, 2022.
Source: NYSE

BY THE NUMBERS

U.S. stock futures rose slightly Tuesday as Dow stock Johnson & Johnson (JNJ) fell modestly after mixed quarterly results. Also adding pressure on equities, the benchmark 10-year Treasury yield topped 2.9%, a level not seen since late 2018. The Dow, the S&P 500 and the Nasdaq started the week with slight losses after a holiday-shortened week of declines, especially in tech stocks. Netflix is set to report earnings after the closing bell Tuesday. Subscriber growth is expected to slow at the video streaming giant. (CNBC)

Johnson & Johnson's first-quarter earnings beat and revenue miss before the opening bell led about a dozen S&P 500 companies reporting financial results Tuesday. J&J lowered its full-year sales and profit outlook, and announced a halt in Covid vaccine sales guidance due to a global supply glut and demand uncertainty. J&J's board approved a 6.6% quarterly dividend increase to $1.13 per share. (CNBC)

IN THE NEWS TODAY

Apollo Global Management (APO) may be willing provide financing for a Twitter (TWTR) buyout, according to sources who spoke to CNBC. However, the private equity giant isn't interested in joining other firms in a buyout bid. Last week, Elon Musk offered to buy Twitter for $43 billion. Financing parties are considering their willingness to lend to Musk or another potential buyer, sources added. (CNBC)

* Delta CEO says the airline tested SpaceX's Starlink internet for planes (WSJ)

The TSA will not enforce the Covid mask mandate on public transportation, after a federal judge in Florida on Monday vacated the Biden administration's national face-covering mandate for planes and other forms of public transportation. U.S. District Judge Kathryn Kimball Mizelle ruled the CDC had overstepped its authority. (CNBC)

Russia's long-anticipated offensive in east Ukraine appears to be underway after pulling back troops from the northern front. Kremlin forces unleashed attacks on a number of areas within the Donbas region. If successful, the eastern offensive would give Russian President Vladimir Putin a vital piece of Ukraine and a badly needed victory after plans to overrun the capital city of Kyiv failed. (CNBC)

The U.S. Secret Service has seized more than $102 million in illicit digital currencies since 2015. The head of the agency's investigations office told CNBC that cracking a crypto case is often like a "house of mirrors." Investigators are finding thieves will transfer stolen bitcoin and other digital currencies into stablecoins.

Nelson Peltz hosted a $5,000-a-plate fundraiser for Sen. Joe Manchin at the billionaire's sprawling Florida estate last month, where several top executives said they privately hoped the conservative Democrat would switch parties and run against President Joe Biden in the 2024 election, CNBC has learned.

* Don't blame stimulus checks for inflation, UBI Andrew Yang says (CNBC)

Amazon (AMZN) will conduct a racial-equity audit of its hourly workers after shareholders urged the company to provide more transparency into how its policies affect diversity, equity and workplace inclusion. Amazon will make the results of the audit public but didn't provide a completion date. (CNBC)

* CEOs made a median $20 million last year; 254x the average worker (CNBC Make It)

Investors turned increasingly cautious on Chinese stocks, especially those listed overseas, in the first quarter of the year that was rocked by geopolitical tensions and worries about growth. That's according to data from research firm EPFR Global. (CNBC)

* China's property sector could be turning around (CNBC)

Mercedes-Benz on Tuesday took the wraps off its new EQS SUV, its first fully electric SUV built domestically for the U.S. market. The vehicle is the sibling of the EQS sedan, released last year, but with seating for up to seven people and a taller, bubblier stance. (CNBC)

* Audi’s new concept car is a self-driving ‘lounge on wheels’ for city travelers (CNBC)

STOCKS TO WATCH

Travelers (TRV) was volatile in premarket trading, moving between gains and losses after the insurance company beat estimates on the top and bottom lines for its latest quarter. Travelers also announced a 5.7% dividend increase.

Halliburton (HAL) fell 2.5% in premarket trading despite beating estimates for its latest quarter. It earned 35 cents per share, a penny a share above estimates as demand for oilfield services equipment remained high. Halliburton shares did close at a 3½-year high Monday.

Netgear (NTGR) tumbled 10.5% in premarket trading after the networking equipment maker reported weaker-than-expected preliminary results for the quarter that ended April 3. Netgear also cut its current-quarter revenue forecast, pointing to a weaker U.S. market for WiFi equipment.

Zendesk (ZEN) jumped 6% in premarket trading following a Bloomberg report that the customer service software developer is exploring a possible sale. Zendesk is said to have hired adviser Qatalyst Partners to assist in the process.

WeWork (WE) rallied more than 5% in the premarket after the stock was rated overweight in new coverage at Piper Sandler. The firm points to confidence in WeWork's path to profitability and how well the flexible office model fits a post-Covid world.

Acadia Pharmaceuticals (ACAD) slid 7.5% in premarket action after the drugmaker said its experimental drug to treat post-operative pain did not meet its primary goal in a Phase 2 study.

Plug Power (PLUG) jumped 6.5% in premarket action after the hydrogen fuel cell company announced an agreement to supply liquid green hydrogen to Walmart (WMT).

American Campus Communities (ACC) agreed to be bought by Blackstone (BX) in a deal worth $12.8 billion, including debt. The student housing real estate investment trust shares jumped nearly 13% in the premarket.

Copyright CNBC
Contact Us