Stock futures dip slightly in premarket trading Tuesday

16 minutes ago

Uber jumps 7% on better-than-expected earnings

Uber advanced more than 7% before the bell after its fourth-quarter earnings beat analysts’ expectations.

The rideshare company posted earnings per share of 29 cents, beating an expected loss of 18 cents by analysts polled by Refinitiv. Uber also beat expectations of $8.49 billion in revenue, bringing in $8.6 billion in the quarter.

CEO Dara Khosrowshahi said in a prepared statement that the company had its “strongest quarter ever” to close out its “strongest year.”

– Ashley Capoot, Alex Harring

48 minutes ago

Morgan Stanley upgrades American Express

53 minutes ago

Wells Fargo raises Goldman Sachs price target

Wells Fargo analyst Mike Mayo raised his price target on Goldman Sachs, noting that the stock is undervalued relative to its peers.

“GS is not taking credit for expected ’23 and ’24 returns that are below target and could have higher growth if targets are met,” Mayo said, noting that a new analysis of the company’s return on equity price-to-book tangibles position Goldman Sachs as 19% undervalued relative to peers.

Goldman shares are up 9% for the year, slightly outperforming the S&P 500.

– Samantha Subin

4 hours ago

Maersk, global trade barometer, posts record profits for 2022 but warns of tough year ahead

Shipping company Maersk posted record annual profits for 2022, but warned that profits will fall this year as a “more balanced demand environment” emerges.

Photo Alliance | Photo Alliance | Getty Images

Maersk, one of the world’s largest container shipping firms, reported a drop in fourth-quarter profits on Wednesday but posted the best full-year result in its history.

The Danish giant, widely seen as a barometer for global trade, said its earnings before interest, taxes, depreciation and amortization (EBITDA) came in at $6.5 billion in the fourth quarter, below a consensus forecast from analyst Refinitiv of $6.77 billion. dollars and from 8 billion dollars for the same quarter of 2021.

That brought full-year underlying EBITDA to $36.84 billion, slightly below the company’s forward guidance of $37 billion, but its strongest ever full-year result.

However, for 2023, Maersk expects underlying EBITDA to fall to between $8 billion and $11 billion.

It said the guidance was based on “the expectation that the inventory correction will be completed by the end of the first half leading to a more balanced demand environment, that global GDP growth for 2023 remains muted and that the global market of ocean containers will increase in a range of -2.5% to +0.5%.

Read the full story here.

– Elliot Smith

9 hours ago

Biden, Republicans seem to agree on preserving Social Security, Medicare benefits

U.S. President Joe Biden delivers the State of the Union address to a joint session of Congress as Vice President Kamala Harris and Speaker of the House Kevin McCarthy (R-CA) listen on February 7, 2023 in the U.S. House of Representatives

Swimming pool | Getty Images News | Getty Images

Biden appeared to get Republicans to agree not to touch Social Security and Medicare funds when they seek to cut spending.

Republicans hit back at the president when he said some House GOP members had proposed cutting funding for the programs.

“Okay folks, as we all seem to agree, Social Security and Medicare are not right now,” Biden shouted.

“If somebody tries to cut Social Security, which apparently nobody will, I’m going to stop it. I’m going to veto it,” Biden said. “Looks like it won’t be a problem.”

– Emma Kinery

13 hours ago

Chipotle shares fall after earnings

Shares of Chipotle Mexican Grill fell more than 4% in extended trading after the restaurant chain missed quarterly earnings and revenue expectations.

Chief Financial Officer Jack Hartung said during the company’s conference call that Chipotle “didn’t see that pace, that momentum” that it usually has during the holidays, ending the quarter “soft.”

See the chart…

Chipotle shares fall

– Amelia Lucas, Sarah Min

13 hours ago

Ebay plans to lay off 500 employees; profit shares

Ebay plans to lay off 500 employees, about 4% of its workforce, according to a Tuesday filing with the SEC. The e-commerce stock rose slightly in extended trading, up 0.3%.

In a memo to employees, CEO Jamie Iannone said management took a “thoughtful look” at the company regarding the macroeconomic environment, saying the layoffs will enhance eBay’s ability to provide better experiences for its customers. .

– Ashley Capoot, Sarah Min

13 hours ago

Stocks make the biggest moves after hours

Here are three names making headlines on Tuesday after hours:

Chipotle Mexican Grill – Shares fell more than 4% in extended trading after Chipotle Mexican Grill missed analysts’ expectations on both the top and bottom lines. The burrito chain reported earnings of $8.29 per share on revenue of $2.18 billion. Analysts polled by Refinitiv had expected earnings of $8.90 per share on revenue of $2.23 billion. Lumen Technologies — Shares fell more than 16% after Lumen Technologies reported its latest results. The company provided guidance for 2023 on adjusted earnings before interest, taxes, depreciation and amortization that was lower than analysts expected, according to FactSet/ The telecommunications company topped earnings per share and sales expectations, according to consensus estimates from Refinitiv .Fortinet – Shares rose more than 11% in extended trading after Fortinet beat expectations for earnings per share, according to StreetAccount. The cybersecurity company posted earnings of 44 cents per share, beating expectations of 39 cents per share. However, the cybersecurity company slightly missed revenue estimates, posting $1.28 billion, short of the $1.3 billion forecast.

See the full list here.

– Sarah Min

13 hours ago

Former NEC chief economist says a short-term economic downturn is likely

Joseph LaVorgna, the former chief economist of the National Economic Council, said he sees a further slowdown in economic activity this spring before long-term rates are finally cut as the Federal Reserve continues its interest rate hike campaign.

“The data suggests that a recession could start literally any quarter … A downturn this spring is very much on track in my view,” he said on CNBC’s “Fast Money.”

LaVorgna added that the market is signaling the Fed is too tight, citing an “extremely” inverted yield curve that requires short-term interest rates to be higher than long-term rates. Treasury yields reversed earlier declines after Powell’s comments on Tuesday. The 10-year yield is now up to 3.679%, while the rate for the 2-year is 4.466%. If the curve inverts even more, LaVorgna said that would suggest the possibility of a “deeper and longer” recession.

“The Fed now has to focus on growth and it has to focus on where it thinks the economy is going … they compounded the mistake of being asleep on the cut with now another mistake of thinking they’re going to keep rates on hold for the rest of the year.” largest of 2024,” said LaVorgna, who is now chief economist at SMBC Nikko Securities America, Inc.

– Pia Singh

13 hours ago

The State of the Union may not move future markets, some say

Market watchers said President Joe Biden’s State of the Union address scheduled for 9 p.m. EST is unlikely to move stocks. But they still said that geopolitical themes are important to follow as they could affect the market going forward.

“I don’t think today’s State of the Union speech will play much in the markets,” said Sam Stovall, chief investment strategist at CFRA Research.

Stovall said Biden could address the debt ceiling, but that likely won’t be an issue the market considers until May.

Others said it could be important for how the next presidential election is shaped.

“The State of the Union may not be a market mover, but it will be important as it will set expectations for how Biden’s potential re-election campaign will go,” said Ed Moya, senior market analyst at Oanda. “President Biden has the economy in much better shape than a year ago, but only 36% approved of the way he has handled it.”

Follow along with CNBC’s live coverage of Biden’s address and next steps here.

– Alex Harring

13 hours ago

Stock futures open lower

US stock futures fell slightly on Tuesday night.

Dow Jones Industrial Average futures fell 58 points, or 0.17%. S&P 500 and Nasdaq 100 futures fell 0.19% and 0.2%, respectively.

– Sarah Min