What to watch today: Dow futures sink on concerns about Covid cases in Europe

view original post

BY THE NUMBERS

Dow futures fell nearly 250 points as concern builds around European Covid outbreaks. Austria announced Friday morning that it will re-enter a full national lockdown due to a resurgence in cases. Nasdaq futures were modestly higher, however, supported by a generally upbeat premarket for tech stocks. Intuit shares soared more than 13% in Friday’s premarket, the morning after the TurboTax software company blew past estimates with quarterly earnings and raised full-year revenue guidance. (CNBC)

The Nasdaq and the S&P 500 on Thursday closed at records and were tracking for positive weeks. The Dow dipped, now more than 1.5% away from its Nov. 8 record close. The 30-stock average was on pace for a negative week. (CNBC)

IN THE NEWS TODAY

Austria’s fourth national Covid lockdown will start on Monday and will initially last for 10 days. The country’s unvaccinated are already barred from leaving their homes for nonessential purposes. Starting Feb. 1, Austria will make vaccinations mandatory. Covid cases are spiking across Europe, prompting many governments to ramp up mitigation measures. (CNBC)

The Food and Drug Administration has cleared booster shots from Moderna and Pfizer for use in everyone 18 and older in the U.S., another key step toward widespread availability. The Centers for Disease Control and Prevention still has to authorize the distribution of the additional doses. The CDC’s independent panel of vaccine experts is scheduled to meet Friday. (CNBC)

* Biden administration suspends enforcement of business vaccine mandate to comply with court order (CNBC)

The House moved toward a vote on President Joe Biden‘s social safety net and climate plan Friday morning after a key analysis said it would only slightly add to budget deficits over a decade. Democrats had been looking at a Thursday vote, but it was postponed as House Republican leader Kevin McCarthy delivered a marathon speech. (CNBC & AP)

A bipartisan coalition of state attorneys general said it’s investigating how Instagram attracts and affects young people, increasing pressure on parent company Meta Platforms, formerly called Facebook, over potential harms to its users. The group is being led by eight states, including Massachusetts and Nebraska. (WSJ)

* TikTok usage surpassed Instagram this year among kids 12 to 17, survey says (CNBC)

Sierra Space, a unit of private aerospace contractor Sierra Nevada Corporation, raised $1.4 billion in new capital at a $4.5 billion valuation. The funding represents the first outside investment. Sierra Space has two major projects in development: The Dream Chaser spaceplane and the Orbital Reef space station, the latter which it partnered with Jeff Bezos’ Blue Origin to build.

China’s Xpeng (XPEV) unveiled a new electric SUV, called the G9, with plans to launch it in the third quarter of 2022 in China. Xpeng’s G9 will face off against the likes of Tesla’s Model Y, Nio’s ES6 and Li Auto’s Li One. The G9 will feature Xpeng’s Xpilot semi-autonomous driving system, lidar technology and Nvidia chips. (CNBC)

* Ford plans to increase EV production to 600,000 vehicles by 2023 (CNBC)

STOCKS TO WATCH

Foot Locker (FL) slid 3.6% in the premarket after the athletic footwear and apparel retailer said it expects global supply chain constraints to persist through this quarter. The slide comes despite a beat on both the top and bottom lines for Foot Locker’s most recent quarter, as well as better-than-expected comparable store sales.

SoFi (SOFI) fell 1.9% in premarket action following news that investor Chamath Palihapitiya sold 15% of his stake in the fintech firm to help build his cash reserves and fund new investments.

Farfetch (FTCH) plunged 21.4% in the premarket after the online luxury fashion marketplace operator reported a narrower-than-expected quarterly loss but saw revenue fall short of Wall Street forecasts. The company gave weaker-than-expected adjusted earnings guidance.

Ross Stores (ROST) reported quarterly earnings of $1.09 per share, topping the 78-cent consensus estimate, with revenue also beating forecasts. However, the discount retailer said it was seeing significant supply chain issues, causing uncertainty heading into the holiday shopping season, and the stock slid 3.4% in the premarket.

Williams-Sonoma (WSM) reported adjusted quarterly earnings of $3.32 per share, beating the consensus estimate of $3.14. The housewares retailer saw better-than-expected revenue and raised its full-year forecast, noting a strong jump in e-commerce and strength across its brands. Williams-Sonoma also reported higher-than-expected selling, general and administrative expenses during the quarter, and the stock fell 7.7% in the premarket after rising in five of the past six sessions.

Buckle (BKE) rallied 5.6% in the premarket following an upbeat quarterly earnings report. The fashion accessories retailer earned $1.26 per share for the quarter, beating the 92-cent consensus estimate, with revenue also topping Street projections.

Dillard’s (DDS) added 3.2% in premarket trading after the department store operator announced a $15 per share special dividend, payable on Dec. 15 to shareholders of record as of Nov. 29.

Palo Alto Networks (PANW) jumped 3.9% in premarket trading, reversing initial losses that occurred after the cybersecurity firm gave weaker-than-expected full-year guidance. Palo Alto beat forecasts on the top and bottom lines for its most recent quarter, earning an adjusted $1.64 per share compared with a consensus estimate of $1.57.

Workday (WDAY) beat estimates by 24 cents with adjusted quarterly earnings of $1.10 per share, while the maker of human resources software saw revenue top estimates amid faster growth in subscription revenue. However, the company said the effects of the Covid-19 pandemic will weigh on growth in the coming year, and the stock tumbled 7.3% in premarket trading.

Applied Materials (AMAT) came in a penny shy of estimates with adjusted quarterly earnings of $1.94 per share. The semiconductor equipment maker’s revenue fell short of forecasts as well. Applied Materials also gave a weaker-than-expected current-quarter outlook amid supply shortages of certain components, and its stock tumbled 5.7% in the premarket.