By Stock futures started the day on a downward trend on Tuesday after the S&P 500 faced a decline last week, breaking a five-week winning streak. The drop came after two reports on inflation were released, showing numbers higher than anticipated.
Notable Stock Movements Today
Discover Financial (DFS) Acquired by Capital One Financial
Discover Financial saw a significant increase of 14% to $126.16 following the announcement of its acquisition by Capital One Financial for over $35 billion. Shareholders of Discover will receive 1.0192 Capital One shares for each Discover share, presenting a premium of about 27%. This move will establish the largest credit card company in the U.S. by loan volume. However, Capital One shares experienced a slight decrease of 3.9% in premarket trading.
JetBlue Airways (JBLU) Sees Positive Growth
JetBlue Airways observed a 2% increase after activist investor Carl Icahn secured two seats on the board. Icahn had recently revealed ownership of nearly 10% of the company’s stakes.
Barclays (BCS) Announces Plans for Shareholders
U.S.-listed shares of Barclays surged by 6.2% as the British bank declared intentions to return at least £10 billion ($12.6 billion) to shareholders through dividends and stock buybacks between 2024 and 2026. Additionally, Barclays disclosed a three-year reorganization strategy.
Upcoming Earnings Reports
Investors are anticipating earnings reports from key companies like Walmart, Home Depot, Palo Alto Networks, Medtronic, Caesars Entertainment, Diamondback Energy, and Keysight Technologies scheduled for today.
Retail Earnings Report Overview
Walmart Preps for Upcoming Report
Walmart saw a 0.4% increase prior to its report set to release before Tuesday’s market opening. Analysts are anticipating fourth-quarter adjusted earnings of $1.64 per share, with sales projected to hit $170.9 billion, up 4%. Notably, Walmart has consistently met or exceeded Wall Street’s expectations for the past six quarters.
Home Depot Faces Revenue Decline
On the other hand, Home Depot experienced a 0.5% decrease. Wall Street expects the home-improvement retailer to announce a 3% revenue decline in the fourth quarter, amounting to $34.6 billion. Similarly, the fiscal-year revenue is anticipated to drop by the same percentage. If realized, this would be Home Depot’s first annual sales decrease since 2009.
Upcoming Reports Lineup
Later this week, reports are scheduled from various companies including Nvidia, Analog Devices, Rivian Automotive, Intuit, Booking Holdings, Block, Moderna, Warner Bros. Discovery, and Berkshire Hathaway.
Nvidia’s Anticipated Earnings Release
Nvidia’s highly awaited fourth-quarter earnings report is set for release after Wednesday’s trading session closes. Sales are projected to more than triple from the previous year, surpassing $20 billion. This surge is attributed to Nvidia’s stronghold in providing chips for training artificial-intelligence systems. Despite this announcement, the stock experienced a 0.7% dip during premarket trading.
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