Good Friday morning traders and investors of the r/stocks sub! Welcome to the final trading day of this week. Here are your pre-market movers & news this AM-
Dow futures fall following Thursday’s market selloff fueled by banks, U.S. jobs report looms
Futures tied to the Dow Jones Industrial Average fell Friday as investors look to upcoming job data for clues into how the Federal Reserve may move forward. The action follows a steep sell-off led by bank shares.
Dow futures shed 66 points, or 0.2%. S&P 500 futures dipped 0.1%, and Nasdaq-100 futures traded flat.
Shares of the SVB Financial tumbled again on Friday, down another 63% after initially plunging on plans to raise more than $2 billion in capital in a bid to offset losses from bond sales.
The move weighed on the financial sector and banking stocks, with the SPDR S&P Regional Banking ETF down more than 2%. Shares of First Republic and Signature Bank were last down about 18% and 12%, respectively.
Wall Street posted a losing session Thursday. A drop in SVB Financial shares spurred a broad financial sector selloff, as investors grew concerned that higher interest rates would result in banks facing losses on loans due to borrower defaults. The selloff pushed the S&P’s financial sector down 4.1% for its worst day since 2020.
On Thursday, the Nasdaq Composite recorded a 2.05% slide, while the S&P 500 posted a 1.85% dip. The Dow lost 543.54 points, or 1.66%, as the 30-stock index closed below its 200-day moving average for the first time since Nov. 9. All three major averages are on pace to finish the week down 3% or more.
Wall Street is bracing for February jobs report, which is slated to be released at 8:30 a.m. ET. Economists polled by Dow Jones expect nonfarm payrolls to rise 225,000 in the month, which would mark a slowdown in growth from January’s unexpectedly large gain of 517,000.
The unemployment rate is expected to remain unchanged from January — when it hit a low not seen since 1969 — at 3.4%, according to Dow Jones. Hourly wages are expected to have increased 0.4% from the prior month, gaining 4.8% from 12 months ago, economists estimate.
While having more jobs is considered good for the economy, a better-than-expected report can push stocks lower, according to Brad McMillan, chief investment officer for Commonwealth Financial Network. That’s because more workers can signal more demand, he said, which would indicate higher inflation.
Traders are pricing in a roughly 63% chance of the Federal Reserve raising rates by half of a percentage point at its next policy meeting in about two weeks, according to the CME FedWatch Tool. Investors see Friday’s job report as a key driver in that decision, given the central bank’s continued focus on the strength of the labor market as a justification for rate increases.
“A strong report would be bad news for the Fed, for interest rates, and for markets,” McMillan said.
STOCK FUTURES CURRENTLY:
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YESTERDAY'S MARKET MAP:
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TODAY'S MARKET MAP:
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YESTERDAY'S S&P SECTORS:
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TODAY'S S&P SECTORS:
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TODAY'S ECONOMIC CALENDAR:
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NEXT WEEK'S ECONOMIC CALENDAR:
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NEXT WEEK'S UPCOMING IPO'S:
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NEXT WEEK'S EARNINGS CALENDAR:
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(T.B.A. THIS WEEKEND.)
THIS MORNING'S PRE-MARKET EARNINGS CALENDAR:
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EARNINGS RELEASES BEFORE THE OPEN TODAY:
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EARNINGS RELEASES AFTER THE CLOSE TODAY:
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YESTERDAY'S ANALYST UPGRADES/DOWNGRADES:
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YESTERDAY'S INSIDER TRADING FILINGS:
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TODAY'S DIVIDEND CALENDAR:
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THIS MORNING'S STOCK NEWS MOVERS:
(source: cnbc.com)
SVB Financial — Shares of the company known as Silicon Valley Bank extended their big slide, falling more than 40% in early morning trading after the company Thursday announced a plan to raise more than $2 billion in capital to help offset losses on bond sales. The news weighed on the entire banking sector for a second day, with First Republic Bank losing 7.5% in the premarket and c/rypto focused Signature Bank down 4%. Zions Bancorporation fell 2%. In the previous session, SVB finished down 60%.
STOCK SYMBOL: SIVB
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Allbirds — Shares of the footwear retailer plummeted more than 22% after the company failed to post year-over-year quarterly sales growth for the first time in its history. Allbirds also unveiled a broad transformation strategy and an executive shake-up.
STOCK SYMBOL: BIRD
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DocuSign — The electronic signature platform dropped nearly 14% despite an earnings and revenue beat. However, DocuSign announced CFO Cynthia Gaylor would step down later this year. The stock was also downgraded by JPMorgan to underweight from neutral. The firm cited deteriorating demand trends, potential competition from Microsoft and Gaylor’s departure.
STOCK SYMBOL: DOCU
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Oracle — The software company dropped 4.9% after revenue for its latest quarter missed analysts’ expectations. Oracle posted $12.4 billion, compared with Wall Street’s estimates of $12.42 billion, according to Refinitiv.
STOCK SYMBOL: ORCL
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Gap — The apparel retailer saw its shares drop more than 7% after it announced a big quarterly loss, declining sales and a series of executive changes. It also issued weaker-than-expected guidance for its first quarter and full-year revenue, according to Refinitiv.
STOCK SYMBOL: GPS
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Vail Resorts — The stock lost 2% following a mixed financial report for its second fiscal quarter and weak guidance that included earnings that fell short of analysts’ estimates. The company’s guidance on net income and adjusted EBITDA for the year leading up to July also came in under analysts’ expectations.
STOCK SYMBOL: MTN
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Roblox — Shares climbed 2.9% after Jefferies upgraded Roblox to buy from hold. The Wall Street firm said it’s confident the online gaming platform will continue to show strong growth in spite of macro pressures.
STOCK SYMBOL: RBLX
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FULL DISCLOSURE:
/u/bigbear0083 has no positions in any stocks mentioned. Reddit, moderators, and the author do not advise making investment decisions based on discussion in these posts. Analysis is not subject to validation and users take action at their own risk.
DISCUSS!
What's on everyone's radar for today's trading day ahead here at r/stocks?
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