CNBC
U.S. stock futures rose Thursday after the Dow Jones Industrial Average, S&P 500 and Nasdaq closed at record highs as President Joe Biden took office. Wall Street this year has been banking on another coronavirus stimulus package and a smoother vaccine rollout under Biden. So far in 2021, the Dow has gained nearly 2%; the S&P 500 is up more than 2.5%; and the Nasdaq has risen 4.4%. (CNBC)
Bitcoin slumped for a second day Thursday, taking the digital currency's losses to more than 10% over 48 hours and wiping off billions of dollars from the crypto market. Bitcoin has had a wild few weeks of volatility, briefly hitting a record high of over $41,940 earlier this month before sinking sharply. (CNBC)
The Labor Department on Thursday morning reported a lower-than-expected 900,000 new filings for unemployment benefits for the week ending Jan. 16. The previous week's initial jobless claims total was revised down 39,000 to 926,000. However, those numbers are still among the highest since late August. (CNBC)
Dow stock Travelers leads Thursday morning's list of companies reporting earnings. The insurance giant reported per-share profit of $4.91 in the fourth quarter, much higher than expectations. Net written premiums rose 3% to $7.27 billion. Shares rose 2%. Dow components Intel and IBM are out with quarterly results after the closing bell. Both stocks were higher in the premarket. (CNBC)
Shares of United Airlines fell 2% in Thursday's premarket trading, one day after the carrier warned that sales would suffer early this year as the pandemic persists. United delivered a larger-than-expected loss of $7 per share in the fourth quarter. Revenue of $3.41 billion also fell short of estimates. The company expects to surpass its pre-pandemic margins by 2023. (CNBC)
IN THE NEWS TODAY
Eli Lilly (LLY) said Thursday that its antibody-based drug prevented Covid-19 among many residents and staff of nursing homes and assisted-living facilities. The treatment reduced the risk of both staff and residents getting sick with Covid-19 by about 57% compared with a placebo, according to a Lilly study. Shares of Eli Lilly rose more than 1% in the premarket. (WSJ)
The Senate Finance Committee is expected to vote Friday on former Fed chief Janet Yellen's nomination as Biden's Treasury secretary. On Wednesday evening, the full Senate confirmed Avril Haines as director of national intelligence, making her the first official member of Biden's Cabinet. (CNBC)
Tesla (TSLA) saw fourth-quarter registrations in California jump by nearly 63% during the fourth quarter, thanks in part to the success of its Model Y crossover. California is Tesla's largest U.S. market. The electric automaker reported better-than-expected overall 2020 vehicle deliveries earlier this month. (Reuters)
* Tesla Model 3 reportedly explodes in Shanghai parking garage (CNBC)
STOCKS TO WATCH
Alcoa (AA): Alcoa reported quarterly profit of 26 cents per share, compared to a consensus estimate of 11 cents a share. The aluminum producer's revenue also topped forecasts, but the company added it could see a drop in current-quarter performance should conditions in its end markets not improve.
Discover Financial (DFS): Discover earned $2.59 per share for the fourth quarter, 17 cents a share above estimates. The financial services company's revenue also came in above estimates. It expects modestly positive loan growth this year, but also sees an increase in credit losses during the second half of this year.
KeyCorp (KEY): KeyCorp reported better-than-expected profit and revenue for the fourth quarter, as the bank's consumer mortgage and investment banking businesses helped drive strong growth in fees.
Truist Financial (TFC): The bank reported quarterly profit of $1.18 per share, beating the consensus estimate of 97 cents a share. Revenue also beat analysts' forecasts, helped by record results in Truist's investment banking and commercial real estate businesses.
Baker Hughes (BKR): The oilfield services company reported quarterly loss of 7 cents per share, compared to a consensus estimate of a 17 cents per share profit. Revenue exceeded analysts' forecasts. The company said it was pleased with its 2020 performance considering the impact of the pandemic and industry downturn, and that it is well-positioned for the current environment.
Kinder Morgan (KMI) Kinder Morgan beat estimates by 3 cents a share, with quarterly earnings of 27 cents per share. The pipeline operator's revenue also came in above Wall Street forecasts. Its results got a boost from increased natural gas shipping activity, but the company expressed concern over the rapid increase in shale-related spending following a rebound in U.S. oil prices.
Corteva (CTVA): Activist investor Starboard Value is seeking to replace Corteva Chief Executive Officer Jim Collins and take control of the agricultural company's board. In a letter sent to the company's board chair, Starboard said Corteva's performance has been mediocre, and that it has an unnamed replacement for Collins in mind.
Plexus (PLXS): Plexus beat estimates by 14 cents a share, with quarterly earnings of $1.23 per share. Revenue was slightly below Wall Street forecasts. The diverse manufacturing company's results were helped by lower expenses, and it gave an upbeat forecast on growing demand in its medical equipment business.
Baidu (BIDU): The China-based search engine company plans to file for a secondary listing in Hong Kong after the Chinese New Year, according to sources who spoke to China's Tencent News service.
WATERCOOLER
The history-making run of the Powerball jackpot came to an end Wednesday night, with one winning ticket, sold in Maryland, for the $730 million jackpot. For Friday's Mega Millions drawing, the top prize ballooned to a projected $970 million. (USA Today)
CONTRIBUTORS
Matthew J. Belvedere
@Matt_Belvedere
Peter Schacknow
@peterschack
