Stock Futures Set to Snap Win Streak After Meta Earnings Disappoint

Unemployment claims came in lower than expected last week

Deputy Editor
Feb 3, 2022 at 9:14 AM
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Stock futures are looking to snap a four-day win streak today, with all three major indexes pointed lower ahead of the bell, as investors pore over the latest batch of corporate earnings. Futures on the Nasdaq-100 Index (NDX) are getting hit the hardest, after Facebook-parent Meta Platforms (FB) shared a fourth-quarter profit miss, and a worse-than-expected current-quarter revenue forecast -- sending the stock more than 22% lower in premarket trading.

Meanwhile, the Dow Jones Industrial Average (DJI) and S&P 500 Index (SPX) are eyeing more muted drops, as Wall Street digests another week of U.S. jobless claims. Claims last week came in at 238,000, which was slightly lower than the 245,000 anticipated, indicating an effort to push past the effects of the omicron variant. 

Continue reading for more on today's market, including:  

  • Can this popular social media stock save its pre-earnings plummet?
  • What to know about Alphabet stock after the company's blowout earnings report. 
  • Plus, what's weighing on Spotify stock; and 2 drugmakers sinking after earnings.

futures feb 3

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw 1.39 million call contracts traded on Wednesday, and 722,481 put contracts. The single-session equity put/call ratio fell to 0.52, and the 21-day moving average stayed at 0.53.
  2. The shares of streaming giant Spotify Technology SA (NYSE:SPOT) are eyeing a 10.9% drop in premarket trading, due to the firm's weaker-than-expected subscriber forecast overshadowing SPOT's fourth-quarter losses and revenue -- both of which bested analysts' expectations.
  3. Pharma concern Biogen Inc (NASDAQ:BIIB) is dropping this morning, down 3.6% before the open, after the company posted a full-year adjusted forecast that came in below analysts' estimates. Though its fourth quarter earnings and revenue topped expectations, it warned that sales of its Aduhelm drug could underwhelm due to changes in Medicare coverage. 
  4. Shares of drugmaker Eli Lilly And Co (NYSE:LLY) are dropping ahead of the bell, last seen down 1.1%, even after the company reported top- and bottom-line beats for its fourth quarter. LLY cited strong demand for its top-selling diabetes drug Trulicity, as well as strength in its antibody therapies as omicron cases surged. 
  5. As always, initial and continuing jobless claims data today. Meanwhile, the final Markit services PMI is on the docket, as is the ISM services index, factory orders, and core capital equipment orders.
OV Buzz Chart Feb 3

European Markets Lower Ahead of Central Bank Decision 

Many markets in Asia remained closed today in observance of the Lunar New Year. Japan's Nikkei fell 1.1%, while the South Korean Kospi added 1.7%.

Elsewhere, European bourses are lower midday, as investors await the latest monetary policy decision from the European Central Bank amid inflationary pressure. The Bank of England announced its second consecutive interest rate hike today, the first back-to-back hike since 2004. At last glance, London's FTSE 100 and the French CAC 40 are both down 0.2%, while the German DAX is off 0.4%. 

 




 
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