Stock futures were higher on Friday as investors tried to hang onto the January rally amid worries about monetary policy and slowing earnings.
Futures tied to the Dow Jones Industrial Average dipped 14 points, or less than 0.1%. S&P 500 and Nasdaq-100 futures gained 0.1% and 0.3%, respectively.
Google rose 3% after the company announced it will lay off 12,000 employees. Netflix jumped 5% after posting more subscribers than expected even though its quarterly earnings missed analysts’ estimates.
Wall Street is coming off another down session, with the Dow and the S&P 500 posting three-day losing streaks as corporate earnings and economic data signal a slowing economy. The Dow slipped more than 252 points, or 0.76% and is now down 0.31% year to date. The S&P 500 shed 0.76% and the Nasdaq Composite lost 0.96%, but both indexes are positive for the year.
For the week, all three indexes are on track to close lower. The Dow is down 3.67%, on track for its worst week since September. The S&P 500 is down more than 2.5% and could notch its worst weekly performance since December. The Nasdaq is down more than 2% and on pace to break a two-week win streak.
“The market is focused and is not sure how to react between the backward looking Fed analysis of the market versus the forward and leading indicators of the market,” said Tim Seymour, founder and chief investment officer of Seymour Asset Management, on CNBC’s “Fast Money.”
Those forward indicators include economic data such as retail sales and industrial production. “This is where the market is starting to break down,” he said.
Going forward, investors will continue to watch corporate earnings with oilfield services name SLB and Ally Financial set to report Friday. They will also listen closely to speeches from Fed officials ahead of the central bank’s February meeting, seeking clues on the size of the rate hike that’s likely forthcoming.
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THIS MORNING’S STOCK NEWS MOVERS:
Netflix — The streaming stock jumped more than 6% after Netflix reported its latest quarterly results. While Netflix missed earnings expectations, it added more subscribers than analysts were forecasting. The firm also announced that co-CEO Reed Hastings would step down from the role.
STOCK SYMBOL: NFLX
Alphabet — The Google parent saw shares rose 3.6% after CEO Sundar Pichai announced the company will lay off 12,000 employees and explained in a memo that the company “hired for a different economic reality than the one we face today.”
STOCK SYMBOL: GOOGL
Eli Lilly — Shares of the pharmaceutical company slumped more than 1% in premarket after the U.S. Food and Drug Administration rejected the drugmaker’s experimental Alzheimer’s disease treatment as it had not provided enough trial data.
STOCK SYMBOL: LLY
Ralph Lauren — The stock rose more than 1% after Barclays upgraded Ralph Lauren to overweight, saying investors are buying a “best-in-class” apparel brand with continued elevation. Separately, Barclays upgraded shares of PVH, which owns Tommy Hilfiger and Calvin Klein brands, to overweight.
STOCK SYMBOL: RL
Regeneron Pharmaceuticals — The pharmaceutical giant gained 1% in the premarket after being upgraded to overweight from neutral by JPMorgan. The Wall Street firm said its drug that treats age-related macular degeneration is “best in class therapy” and could serve as the next big catalyst for Regeneron.
STOCK SYMBOL: REGN
PagerDuty — Shares jumped more than 4% after Morgan Stanley upgraded PagerDuty to overweight from equal-weight, saying the cloud computing company is pushing toward better profitability.
STOCK SYMBOL: PD
Salesforce — The stock dipped more than 1% after Cowen downgraded it to market perform from outperform, saying it sees “elevated levels of disruption risk” given a tougher macro backdrop that could hurt customer spending.
STOCK SYMBOL: CRM
Nordstrom — Shares of the retailer fell 7% in premarket trading after Nordstrom announced that its holiday sales fell 3.5% year over year. In a statement, CEO Erik Nordstrom described the retail environment as “highly promotional.” The company also lowered its earnings outlook.
STOCK SYMBOL: JWN
Macy’s — Retail stocks such as Macy’s declined following disappointing holiday sales from Nordstrom. Shares of Macy’s fell more than 2%, while Kohl’s declined 4%. Dillard’s dipped 1.3%.
STOCK SYMBOL: M
Costco — Shares rose about 1% after Costco said it would reauthorize a stock repurchase program of up to $4 billion through January 2027.
STOCK SYMBOL: COST
FULL DISCLOSURE:
/u/bigbear0083 has no positions in any stocks mentioned. Reddit, moderators, and the author do not advise making investment decisions based on discussion in these posts. Analysis is not subject to validation and users take action at their own risk.
DISCUSS!
What’s on everyone’s radar for today’s trading day ahead here at r/stocks?
I hope you all have an excellent final trading day of this week ahead on this Friday, January 20th, 2023! 🙂
