Starbucks (SBUX) clients are being faithful to the Seattle-based mostly espresso huge in spite of a higher price for their cup of espresso, even as political tension mounts in reaction to mounting selling prices.
In a telephone job interview with Yahoo Finance just after Starbucks’ fiscal 1st-quarter earnings final results, CEO Kevin Johnson said buyer demand from customers all through the holiday getaway period was “incredibly sturdy” with income growth of 19{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, coming in at a history $8.1 billion dollars for the coffee big.
Like a escalating range of corporations assured in the consumer’s capacity to take care of bigger costs, Starbucks also raised price ranges in October, and at the close of January. But Johnson mentioned the enterprise did it in a “pretty qualified way” as it confronted a trifecta of offer chain strains, inflation and mounting labor expenses.
“We’re frequently checking to make confident that the price tag actions that we do get are getting well been given by clients, and not triggering any elasticity problems or purchaser attrition,” he added.
Johnson explained to Yahoo Finance that the organization strategies to increase price ranges twice more in the back fifty percent of the fiscal year, probable around the “spring or summertime,” in buy to offset inflation and increasing charge pressures. In 2021 U.S. inflation rose 5.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, reaching a 39-calendar year higher, according to the U.S. Section of Commerce’s modern report, which is spurring the Federal Reserve into a campaign to hike charges.
(Courtesy: Starbucks)
Having said that, not absolutely everyone is on board with the larger expenses — such as Rep. Pramila Jayapal (D, WA).
In a tweet, the progressive Congresswoman railed against Starbucks’ “soaring gains” and value hikes — striking a very similar tone as fellow Democrat Alexandria Ocasio-Cortez. The New York Congresswoman advised Yahoo Finance this 7 days that inflation was mainly a phenomenon triggered by “straight cost gouging by corporations.”
In the fiscal very first quarter, the corporation noticed a gain of approximately $816 billion, up 31{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} when compared to 2020’s fiscal 1st quarter financial gain. Some of that quantity may perhaps inevitably be chipped at by larger employee costs, with Starbucks scheduling wage hikes, and experiencing a unionization motion which is spread to 54 stores throughout 19 states.
Johnson weighed in on all those efforts, telling Yahoo Finance that “there is certainly around 50…that have filed petitions to the NLRB [National Labor Relations Board] to go by means of the procedure to see if associates in those shops want to vote for a union.”
He added: “All those have not occurred yet and I imagine that’s an significant thing just to place out.”
Shares of Starbucks are down virtually 19{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} {1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} calendar year-to-day.
Brooke DiPalma is a producer and reporter for Yahoo Finance. Follow her on Twitter at @BrookeDiPalma or email her at bdipalma@yahoofinance.com.
Wall Street’s key benchmarks faltered on Thursday, capping back-to-back sessions of gains on the heels of a slew of strong tech earnings, as sentiment waned following dismal results from Facebook that sent shares of the company spiraling along with other tech peers.
A recent winning streak in equities was eclipsed by disappointing fourth quarter results from the platform’s parent company Meta (FB), which unveiled figures that missed estimates after the bell on Wednesday. The Q4 report sent shares tumbling more than 26{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} — and also hammered other technology stocks — marking the biggest single-day wipeout in market history.
The Nasdaq Composite plunged 538.73 points to end 3.74{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} lower, while the S&P 500 fell 2.44{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} into the red. The Dow Jones Industrial Average also closed down 518.17 points, or 1.45{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, lower.
Meanwhile, WTI crude oil topped $90 a barrel for the first time since 2014 amid continued global supply constraints and geopolitical tensions.
Meta reported Q1 2022 revenue, a key figure for stock watchers, that came up short, with the company estimating between $27 billion to $29 billion in the current quarter, below analysts’ expectations of $30.25 billion. The company’s ability to continue to navigate Apple’s (AAPL) recent privacy changes that allow iOS users to opt out of letting their apps track them across the web was also in focus for the near term.
Facebook’s fourth-quarter report comes amid a prolific week in earnings season. Shares of Amazon (AMZN), which disclosed figures after market close on Thursday, surged 15{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in post-market trading after the company reported a 9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} sales increase during the last three months of 2021 and a jump in profit attributed to its deal with Rivian (RIVN). The e-commerce giant’s results mark the last of five corporate heavyweights that account for about one-quarter of the S&P 500’s total market capitalization for this earnings season. Earlier this week, Alphabet (GOOGL) rallied after the company topped quarterly sales and profit estimates and announced a 20-for-1 stock split.
In a discussion with Yahoo Finance Live on why Facebook and other social media stocks have cratered, Cowen managing director Chris Pollard said: “If we take a step back and we think about why markets have been weak, it’s been the hawkish policy pivot.”
Anxiety around central banking policies rattled markets in January. The S&P 500 posted a negative return of 5.26{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} for January 2022 – marking its worst month since the benchmark plunged 12.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in March 2020 after COVID-19 upended the global economy. Meanwhile, the Nasdaq Composite (^IXIC) narrowly avoided its worst-performing January on record after a loss of 8.98{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} for the month.
LPL Financial chief market strategist Ryan Detrick pointed out that poor January performance has historically been followed by weakness in February. Data collected by LPL going back to 1960 showed that after drops of 5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} or more in the S&P 500, February performance has been lower six of the past seven times, with muted returns over the final 11 months of the year. To add to that, February has been one of the worst months of the year for the index since 1950, with only September being worse.
“We are encouraged by the big reversal in stocks last week and we think stocks are in the process of forming a meaningful bottom,” Detrick said in a note. “But the truth is, this year is going to be much more volatile than last year and investors had better buckle up their seat belts if the first month is any indication.”
Investors will continue to weigh Big Tech earnings against a fresh read on the Labor Department’s monthly jobs report expected to show growth likely slowed further in January, reflecting a fuller impact from the Omicron variant.
“It’s one of those things where we’re just going to have to get used to the short but shallow economic damage we saw because of the latest variant,” Art Hogan, B Riley-National chief market strategist, told Yahoo Finance Live.
On Wednesday, the ADP reported that private-sector U.S. employers cut 301,000 jobs in January, marking the first decline since December 2020 as the Omicron variant put a dent in the labor market’s recovery. Consensus economists expect 150,000 non-farm payrolls returned in January, a figure that would mark the slowest pace of hiring since December 2020 as the impact of the latest COVID waves catches up to economic data.
“The takeaway for investors is probably a temporary blip on an otherwise strong recovery we’re seeing in the employment markets,” SEI CIO Jim Smigiel told Yahoo Finance Live. “It’s not too surprising we’re seeing a bit of weakness.”
Jared Bernstein, member of the White House Council of Economic Advisers, emphasized to Yahoo Finance Live that this month’s figures are likely to be “distorted” by a number of Americans who have tested positive for the virus in the latest surge on unpaid leave that are not tracked on the payroll count.
4:25 p.m. ET: Amazon surges in extended trading following upbeat Q4 results
Shares of Amazon (AMZ) surged 15{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in post-market trading after the company reported a 9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} sales increase during the fourth quarter and a jump in profit attributed to its deal with Rivian (RIVN).
The e-commerce giant also said it will raise its prime membership fee to $139 per year from $119, marking the third time since the launch of Amazon Prime that the company boosted its prices for the yearly delivery service.
Net sales increased 9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to $137.4 billion in the fourth quarter, compared with $125.6 billion in the same period last year. The company’s 1st quarter revenue forecast is for $112 billion-$117 billion. The Street was expecting guidance of $120 billion.
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4:00 p.m. ET: Nasdaq plunges 4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in worst drop since March 2020
Here were the main moves in markets at Thursday’s close:
S&P 500 (^GSPC): -112.08 (-2.44{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,477.30
Dow (^DJI): -518.99 (-1.46{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 35,110.34
Nasdaq (^IXIC): -538.73 (-3.74{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 13,878.82
Crude (CL=F): +$1.88 (+2.13{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $90.14 a barrel
Gold (GC=F): -$4.10 (-0.23{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,806.20 per ounce
10-year Treasury (^TNX): +6.1 bps to yield 1.8270{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
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3:15 p.m. ET: Crude oil surges past $90 per barrel on supply concerns
WTI crude oil (CL=F) topped $90 a barrel for the first time since 2014 amid continued global supply constraints and geopolitical tensions.
Oil prices have trended upward on expectations that supply will tighten further even after the Organization of the Petroleum Exporting Countries (OPEC+) producers stuck to planned moderate output increases. OPEC+ agreed on maintaining monthly increases of 400,000 barrels per day (bpd) in output despite pressure from consumers to raise supplies more quickly.
“With OPEC+ unwinding their production cuts, the group’s spare capacity will fall to low levels in 2022. Hopefully by next year there are no mobility restrictions, meaning with the world still expanding oil demand will also rise next year,” UBS commodity analyst Giovanni Staunovo said.
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12:24 p.m. ET: Nasdaq leads losses as Facebook wipeout sends other tech stocks cratering
Here were the main moves in markets in midday trading:
S&P 500 (^GSPC): -75.43 (-1.64{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,513.95
Dow (^DJI): -298.71 (-0.84{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 35,330.62
Nasdaq (^IXIC): -373.87 (-2.59{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 14,043.67
Crude (CL=F): +$0.37 (+0.42{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $88.63 a barrel
Gold (GC=F): -$3.70 (-0.20{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,806.60 per ounce
10-year Treasury (^TNX): +6.3 bps to yield 1.8290{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
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10:30 a.m. ET: US service sector slows in January: ISM Survey
U.S. services industry activity dropped to an 11-month low in January as a jump in COVID-19 infections hit demand at high contact businesses and kept workers at home.
The Institute for Supply Management said on Thursday its non-manufacturing activity index fell to 59.9 last month, the lowest print since February 2021. ISM reported a read of 62.3 in December.
Consensus economist estimates compiled by Bloomberg projected a print of 59.5. Figures above 50 indicate growth in the services sector, which accounts for more than two-thirds of economic activity in the U.S.
The slowdown in services industry activity marked the latest indication in economic data that Omicron-driven infection put a dent in the recovery’s momentum.
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9:55 a.m. ET: Spotify stock craters following ‘eyebrow-raiser’ Q4 results
Spotify (SPOT) shares plunged as much as 15{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in morning trading, marking the biggest drop since March 2020 after the company’s quarterly forecasts for users and gross margin fell short of analysts’ expectations.
Several firms on Wall Street trimmed their price targets for the stock, traded down 15.37{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to $162.41 per share as of 9:55 a.m. ET. Bloomberg data showed the average price target among analysts is $243.
“The bull case called for 2022 to be the margin inflection year after hefty podcasts commitments in 2020, but that dream is fading,” Wells Fargo wrote in a note. “SPOT will need to show the fruits of these investments to win back the Street.”
The bank also called the gross margin outlook the “eyebrow-raiser” of the report.
Spotify icon displayed on a phone screen is seen in this illustration photo taken in Krakow, Poland on February 3, 2022. (Photo Illustration by Jakub Porzycki/NurPhoto via Getty Images)
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9:45 a.m. ET: Meta set for biggest wipeout in market history
Shares of Facebook parent company Meta (FB) fell 25{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} at Thursday’s open after the platform unveiled disappointing fourth quarter results at market close Wednesday.
Meta reported Q1 2022 revenue, a key figure for stock watchers, that came up short, with the company estimating between $27 billion to $29 billion in the current quarter, below analysts’ expectations of $30.25 billion. The company’s ability to continue to navigate Apple’s (AAPL) recent privacy changes that allow iOS users to opt out of letting their apps track them across the web was also in focus for the near term.
In a statement, CFO David Wehner cited Apple’s (AAPL) iOS privacy changes, inflation, and exchange rates as the biggest headwinds for the company moving forward.
The company also revealed that its user growth has slowed to a little more than a trickle, and said it lost 1 million daily active Facebook users in particular.
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9:30 a.m. ET: Stocks plunge at open to cap earlier winning streak
Here were the main moves in markets at Thursday’s open
S&P 500 (^GSPC): -66.95 (-1.46{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,522.43
Dow (^DJI): -112.23 (-0.31{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 35,517.10
Nasdaq (^IXIC): -365.18 (-2.53{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 14,052.37
Crude (CL=F): -$0.60 (-0.68{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $87.66 a barrel
Gold (GC=F): -$5.30 (-0.29{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,805.00 per ounce
10-year Treasury (^TNX): +7 bps to yield 1.8360{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
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8:30 a.m. ET: Another 238,000 American filed new claims last week
First-time unemployment filings trended lower last week, suggesting some of the Omicron-related disruptions that have recently weighed on the labor market’s recovery may be easing.
The Labor Department reported jobless claims came in at 238,000 for the week ending Jan. 29, compared to 245,000 expected by economists, according to consensus data compiled by Bloomberg. During the prior week, filings totaled 260,000.
The agency’s latest print shows back-to-back declines in unemployment claims after filings rose to the highest level since October in mid-January, coming in at nearly 300,000. The jump tracked an Omicron-driven spike in coronavirus cases across the U.S. between December and January, which rendered many businesses temporarily closed and employees sick, or concerned over becoming ill at work.
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7:21 a.m. ET: Tesla recalls more than 800,000 vehicles over seatbelt alert issue
Tesla Inc. (TSLA) has issued a recall on 817,000 U.S. vehicles because the seatbelt alert may not activate when a vehicle starts to remind the driver to buckle up.
The National Highway Traffic Safety Administration (NHTSA) said the cars fail to comply with a federal motor vehicle safety standard on “Occupant Crash Protection” since the audible alert does not activate. Recalls were made on some 2021-2022 Model S and Model X, 2017-2022 Model 3, and 2020-2022 Model Y vehicles.
The electric-vehicle giant is expected to perform an over-the-air (OTA) software update to address the issue.
Shares of Tesla were down 2.58{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in pre-market trading to $882.25 a piece as of 7:21 a.m. ET.
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7:00 a.m. ET: US stock futures fall lower in pre-market trading
Here were the main moves in markets ahead of the open Thursday:
S&P 500 futures (ES=F): -48.75 points (-1.07{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,528.50
Dow futures (YM=F): -94.00 points (-0.26{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 35,398.00
Nasdaq futures (NQ=F): -321.75 points (-2.13{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 14,792.75
Crude (CL=F): -$1.10 (-1.25{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $87.16 a barrel
Gold (GC=F): -$6.50 (-0.36{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,803.80 per ounce
10-year Treasury (^TNX): -3.4 bps to yield 1.7660{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
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6:03 p.m. ET Wednesday: Nasdaq plunges heading into overnight trading after Facebook miss
Here’s how the main benchmarks fared in extended trading Wednesday evening:
S&P 500 futures (ES=F): -32 points (-0.70{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,545.25
Dow futures (YM=F): +44 points (+0.12{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 35,536.00
Nasdaq futures (NQ=F): -260.75 points (-1.68{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 14,853.75
Crude (CL=F): -$0.43 (-0.49{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $87.83 a barrel
Gold (GC=F): -$2.70 (-0.15{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,807.60 per ounce
10-year Treasury (^TNX): -3.4 bps to yield 1.7660{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
A trader works on the floor of the New York Stock Exchange at the closing bell January 14, 2022, in New York, New York. (Photo by TIMOTHY A. CLARY / AFP) (Photo by TIMOTHY A. CLARY/AFP via Getty Images)
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Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc
Read the latest financial and business news from Yahoo Finance
DALLAS, Feb. 2, 2022 /PRNewswire/ — NexPoint Real Estate Finance, Inc.(NYSE: NREF) (the “Company”) announced today the final income allocations of the Company’s 2021 dividend distributions on its common stock and preferred stock. The final income allocations as they will be reported on Form 1099-DIV are set forth in the following table:
Common Shares (CUSIP #65342V101, NYSE Ticker: NREF)
Components may not sum to the totals due to rounding differences. The information above presents final income allocations.
The Company encourages shareholders to consult with their own tax advisors with respect to the federal, state, and local income tax effects of these dividends.
About NexPoint Real Estate Finance, Inc.
NexPoint Real Estate Finance, Inc., is a publicly traded REIT, with its shares listed on the New York Stock Exchange under the symbol “NREF” primarily focused on originating, structuring and investing in first mortgage loans, mezzanine loans, preferred equity and alternative structured financings in commercial real estate properties, as well as multifamily commercial mortgage backed securities. More information about NREF is available at https://nref.nexpoint.com.
Wall Street’s main indexes crawled higher to close in the green for a third straight day following a historically volatile January as investors continue to price in tighter monetary policy and weigh a lineup of big-name earnings reports.
[Click here to read what’s moving markets heading into Wednesday, February 2]
The Dow Jones Industrial Average capped the day up 273 points, or 0.77{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, while the Nasdaq Composite also edged 106 points, or 0.75{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} higher. The S&P 500 made its way into positive territory, closing the day just above breakeven, up 0.69{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. The blue-chip index posted a negative return of 5.26{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} for the first month of the year — its biggest monthly drop since March 2020 and weakest January since 2009 — while the Nasdaq narrowly avoided its worst-performing January on record after a loss of 8.98{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} for the month.
“This is not the time when you want to make rash decisions or change your long-term investment philosophy,” Fitz-Gerald Group CIO Keith Fitz-Gerald told Yahoo Finance Live. “This is when you focus on finding companies that are winning, are profitable, or have have great products we can’t live without.”
Anxiety around how quickly and significantly the Federal Reserve will lift interest rates has caused the turbulence in equities last month as investors dump high-valued, growth assets poised for vulnerability in an environment of higher borrowing costs.
“We are encouraged by the big reversal in stocks last week and we think stocks are in the process of forming a meaningful bottom,” LPL Financial chief market strategist Ryan Detrick said in a note. “But the truth is, this year is going to be much more volatile than last year and investors had better buckle up their seat belts if the first month is any indication.”
Markets are bracing for a bump of at least 25 basis points next month after Fed Chair Jerome Powell implied last week that a liftoff on interest rates to above their current near-zero levels was likely to come in March as policymakers look to tighten financial conditions amid a backdrop of surging inflation.
“Investors are watching the Fed,” Thornburg Investment Management co-head of investments Jeff Klingelhofer told Yahoo Finance Live. “We are absolutely in a period of heightened volatility, and we think it’s here to stay for some time.”
Despite a turbulent month, history suggests buying stocks after major plunges has paid off. According to new research from Goldman Sachs (GS) strategist David Kostin, a look at data since 1950 showed an investor buying the S&P 500 (^GSPC) 10{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} below its high, regardless of whether it was the trough, would have netted a median return of 15{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} over the next 12 months.
“There are two parts to the ‘buy-the-dip’ phrase: Buy the dips and sell the rips,” said Interactive Brokers chief strategist Steve Sosnick on Yahoo Finance Live. “I think this is an environment you are going to get the opportunity to do both.”
Monday commenced a prolific week for this earnings season, with more than 100 companies in the S&P 500 set to report fourth quarter results through Friday. Alphabet (GOOG, GOOGL) unveiled figures after the bell on Tuesday, with results from Amazon (AMZN) and Facebook, now Meta Platforms (FB), due out later this week.
4:00 p.m. ET: Stocks close positive for third straight day following turbulent January
Here were the main moves in markets as of 4:00 p.m. ET:
S&P 500 (^GSPC): Previous Close to
Dow (^DJI): +272.00 (+0.77{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 35,403.86
Nasdaq (^IXIC): +106.12 (+0.75{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 14,346.00
Crude (CL=F): +$0.20 (+0.23{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $88.35 a barrel
Gold (GC=F): +$4.10 (+0.23{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,800.50 per ounce
10-year Treasury (^TNX): +1.8 bps to yield 1.8000{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
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10:12 a.m. ET: US manufacturing activity loses steam at start of new year
U.S. manufacturing activity fell to a 14-month low in January amid a surge of COVID-19 infections in the latest Omicron-driven virus wave, according to one closely-watched measure. The slowdown supported views that economic growth lost traction at the start of the year.
The Institute for Supply Management’s (ISM) latest read on its index of national factory activity dropped to a print of 57.6 last month, the lowest since November 2020. December saw a print of 58.8.
Consensus economist estimates compiled by Bloomberg predicted a read of 57.5. Readings above 50 indicate expansion in manufacturing, which accounts for 11.9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of the U.S. economy.
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10:05 a.m. ET: Job openings rose to 10.925 million in December
The number of job openings and quits each held at historically elevated levels in December, with worker leverage remaining high as labor demand persisted.
The Labor Department’s latest Job Openings and Labor Turnover Summary (JOLTS) showed that vacancies across the U.S. totaled 10.925million at the end of 2021,compared to 10.775 million openings in November. Consensus economists had anticipated December vacancies would come in at 10.3 million, according to Bloomberg data.
The latest report represented a seventh straight month that job openings held above the 10 million level, underscoring the ongoing tightness in the labor market as employers struggle to find enough workers to fill positions. Vacancies had set an all-time high of nearly 11.1 million in July, and trended only slightly lower since then. Before the pandemic, job openings had averaged around 7 million per month throughout 2019.
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9:50 a.m. ET: Meme stock favorites pop after earnings beats
AMC Entertainment (AMC) jumped more than 10{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in early trading after preliminary revenue and Ebitda for the fourth quarter beat consensus estimates. The gains extended to other retail-trader favorites, including fellow meme-stock darling, GameStop (GME).
The gaming retailer also beat forecasts on fourth quarter results. Preliminary revenue came in at $1.17 billion, more than the $1.09 billion estimated by the Street, according to Bloomberg data. Preliminary adjusted Ebitda was $146.8 million to $151.8 million, compared to $82.4 million foreseen in Bloomberg consensus estimates.
“We finished the year with the strongest quarter in two years. The fourth quarter of 2021 marks a meaningful milestone with positive Ebitda of more than $145 million, positive operating cash generated of more than $215 million, and a record year-ending liquidity position of $1.8 billion,” Gamestop CEO Adam Aron said.
Shares of AMC were up 6.69{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 17.14 a piece as of 9:46 a.m. ET, while Gamestop traded 3.57{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} higher to $112.82 per share as of the same time.
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9:30 a.m. ET: Stocks struggle for direction ahead of big-name earnings, economic data
Here were the main moves on Wall Street as morning trading kicked off:
S&P 500 (^GSPC): +5.07 (+0.11{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,520.62
Dow (^DJI): +7.57 (+0.02{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 35,139.43
Nasdaq (^IXIC): +25.00 (+0.18{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 14,264.88
Crude (CL=F): -$0.90 (-1.02{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $87.25 a barrel
Gold (GC=F): +$8.40 (+0.47{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,804.80 per ounce
10-year Treasury (^TNX): -0.5 bps to yield 1.7770{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
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7:25 a.m. ET: AT&T to spin off WarnerMedia in $43 billion Discovery deal
Telecomm giant AT&T Inc (T) announced it will spin off subsidiary WarnerMedia in a transaction to merge its media properties with Discovery Inc. (DISCA) valued at $43 billion. The company is also expected to cut its dividend by nearly half as part of the deal.
Shares of AT&T were down 4.35{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in pre-market trading to $24.39 a piece as of 7:25 a.m., while Discovery stock was mostly flat at around $27.87 per share.
AT&T shareholders will own 71{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of the new, resulting company and receive 0.24 shares of Warner Bros. Discovery for each AT&T share they own. The telecommunications group will have 7.2 billion diluted shares outstanding after the transaction closes. The company will distribute shares of the new Warner Bros. Discovery as a dividend of $1.11 per share, down from $2.08 per share, the lower end of a $8 billion to $9 billion range AT&T had projected earlier.
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7:00 a.m. ET: Contracts on Wall Street’s main indexes edge lower after volatile January
Here’s how the main benchmarks fared ahead of Tuesday’s open:
S&P 500 (^GSPC): -11.75 (-0.26{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,492.50
Dow (^DJI): -54.00 (-0.15{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,943.00
Nasdaq (^IXIC): -28.25 (-0.19{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 14,876.75
Crude (CL=F): -$0.27 (-0.31{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 87.88 a barrel
Gold (GC=F): +$10.30 (+0.57{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,806.70 per ounce
10-year Treasury (^TNX): 0 bps to yield 1.7820{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
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6:01 p.m. ET Monday: Futures dip after S&P 500 posts worst month since March 2020
Here were the main moves in markets heading into overnight trading:
S&P 500 (^GSPC): -9.00 (-0.20{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,495.25
Dow (^DJI): -50.00 (-0.14{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,947.00
Nasdaq (^IXIC): -29.50 (-0.20{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 14,875.50
Crude (CL=F): +$0.03 (+0.03{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 88.18 a barrel
Gold (GC=F): +$2.40 (+0.13{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,798.80 per ounce
10-year Treasury (^TNX): 0 bps to yield 1.7820{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
Traders work on the floor of the New York Stock Exchange at the opening bell January 25, 2022. – Wall Street stocks fell early January 25 following a deluge of mostly solid corporate earnings but a lower global growth forecast from the IMF. (Photo by TIMOTHY A. CLARY / AFP) (Photo by TIMOTHY A. CLARY/AFP via Getty Images)
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Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc
Read the latest financial and business news from Yahoo Finance
If the Federal Reserve raises interest charges 7 moments this year as Financial institution of The us head of world wide economics Ethan Harris predicted in a new call, the stock market will not be immune from these hikes.
“I consider it truly is a flattish current market, to be truthful,” Harris instructed Yahoo Finance Are living on Monday. “I believe for now we have had the near-phrase corrections and the markets had to offer with the simple fact that the Fed just isn’t going to be entirely welcoming likely ahead. They helped drive the inventory market place. Now they are getting again that promise. I imagine the sector will do Alright. I never imagine it will be a excellent year.”
Goldman Sachs Jan Hatzius lifted his very own rate hike expectations to five this year from 4 right after Harris’ phone a 7 days back, which included a minimize to BofA’s 2022 GDP growth estimate to 3.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} from 4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.
Marketplaces have waded by an unsightly get started to the year as traders handicap phone calls by strategists such as Harris and Hatzius for much increased desire prices.
U.S. Federal Reserve Chairman Jerome Powell addresses an on-line only information conference in a body seize from U.S. Federal Reserve video broadcast from the Federal Reserve constructing in Washington, U.S., January 26, 2022. U.S. Federal Reserve Board/Handout by using REUTERS
About 46{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of the Nasdaq’s customers are down at the very least 50{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} from their 52-7 days highs, according to Charles Schwab chief investment strategist Liz Ann Sonders. Zooming out doesn’t paint a much better picture. Around 76{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of the Nasdaq’s associates are down at least 20{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} from their 52-7 days highs.
In the meantime, stocks trading on sky-high valuations have been slammed as traders model in reduce than predicted foreseeable future returns owing to growing costs. AMD (AMD) shares have plunged 23{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in January, Etsy (ETSY) has get rid of 33{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} and Netflix (NFLX) is off by 36{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.
To be certain, not everybody on the Avenue is risk off on what is a more affordable inventory industry now as compared to one month ago.
Goldman Sachs strategist Peter Oppenheimer contends this period of time of heightened volatility is regular current market habits in advance of a change in Fed coverage.
“This is a correction in a bull current market cycle. In our check out, we continue to be in the early component of the growth phase — returns will probably be reduced but the bull marketplace should really go on (so very long as economies develop). In typical with preceding cycles, we assume this stage will be less bifurcated in terms of factor and sector management,” Oppenheimer said in a latest note.
Brian Sozzi is an editor-at-significant and anchor at Yahoo Finance. Abide by Sozzi on Twitter @BrianSozzi and on LinkedIn.
The growing clamor surrounding Spotify (SPOT) took a new turn over the weekend, with at least two more artists vowing to depart the platform over podcaster Joe Rogan — who the streaming giant backed in a statement.
On Sunday, Spotify broke its silence after the company refused to give into Neil Young’s ultimatum to drop “The Joe Rogan Experience” — the most popular podcast on Spotify — over controversies surrounding his stance on COVID-19 vaccinations. The legendary rocker’s music will now be streamed exclusively on SiriusXM, with singer-songwriter Joni Mitchell and Bruce Springsteen guitarist Nils Lofgren also pushing to remove their songs from Spotify.
Although Spotify promoted “rules of the road” for its policies, and plans to add a content advisory to any podcast episode about COVID-19 — directing listeners to a dedicated COVID-19 Hub to combat misinformation — the company flatly refused calls to “take on the position of a content censor.”
Podcaster Joe Rogan has come under fire for spreading fake vaccine information
Amid the furor, data suggests Spotify is backed by the increasingly lucrative economics of streaming, especially as digital media continues its growth, and its massive scale. The effects of similar controversies on Netflix (NFLX), which faced similar outrage over “Cuties” and Dave Chappelle’s comedy special, had a negligible impact on its stock.
According to IFPI’s latest Global Music Report, paid subscription streaming revenues increased by 18.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in 2020. That number is widely expected to come in even higher for 2021.
Spotify leads the way, capturing 31{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of total U.S. subscribers, followed by Apple Music (AAPL) at 15{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, Amazon Music (AMZN) and Tencent (TCEHY) tied at 13{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}; YouTube Music (GOOGL) rounds out the top five at 8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.
Streaming revenues have grown by double digits in recent years, according to IFPI’s latest Global Music Report
Yet market share alone doesn’t guarantee total power to streaming platforms. Taylor Swift famously pulled her “1985” album, along with the rest of her catalog off of Spotify back in 2014, as a means of protesting artist compensation in the digital era.
Swift eventually rejoined the platform in 2017, but similar issues remain top of mind for musicians struggling to profit from Spotify’s ‘pro rata’ model in which users’ monthly fees go into one single pot. That money then divided and distributed by the total number of streams, with Spotify receiving roughly 30{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of the total subscriber’s fee.
Critics of the model say it alienates smaller artists who don’t have the backing of a big label, and takes power away from the consumer, who has no say as to where his or her money lands.
The model has also been accused of being outdated, created at a time when listening habits were drastically different, and streaming was fairly unproven.
Flash forward several years, and streaming is one of the main forms of audio consumption. Spotify boasts an impressive 381 million users across more than 184 countries and markets.
“Streaming has provided stability…the business has become predictable.”Guillermo Page, former record label executive and professor
Streaming royalties: By the numbers
According to Spotify, 184,500 artists generated over $1,000 in royalties in 2020, with 870 artists generating over $1,000,000.
However, it’s important to note that Spotify doesn’t directly pay out its artists or songwriters — hence the key word, “generated.” Rather, payments go through the rights holders (record label, distributors, aggregators, or collecting societies), which then pay out the respective parties.
Although every agreement is different, Spotify says it pays out roughly 2/3 of every dollar it makes through subscribers and advertisers. It has paid more than $23 billion in royalties to music rights holders as of 2020, (including $5 billion in just 2020 alone, up from $3.3 billion in 2017.)
To break it down even further, once the royalties are in the hands of the rights holders, the money is then divided into two buckets: recording (the recordings of the actual songs) and publishing (the copyrights for songwriting and composition, such as lyrics and melodies.)
Although publishing rights are often not worth as much as actual recordings, they can still lead to a significant amount of revenue over time with radio play, advertising, movie licensing and more.
However, some big artists are crafting their own lucrative deals in ways that circumvent the current compensation model. Just last month, Bruce Springsteen sold both his master recordings and publishing rights to Sony Music in a deal reportedly worth north of $500 million.
And last May, The Red Hot Chili Peppers sold the rights to its song catalog for a reported $150 million, followed by Bob Dylan, who sold over 600 copyrights to Universal Music Group in a deal reportedly valued at over $300 million. Meanwhile, Stevie Nicks sold a majority stake in her songwriting for a reported $100 million.
Guillermo Page, a former record label executive who worked for Sony and Universal, previously told Yahoo Finance that “streaming has provided stability.”
“The key is that the business has become predictable,” according to Page, who now teaches in the music program at the University of Miami.
Investors “can trust in the future of the business because it’s growing. When you eliminate the uncertainty, it opens up a new door for investors to come in and snap those assets,” he added.
Why Spotify is ‘growing up’
Bottom line? Streaming balloons the value of songs and records which make platforms necessary for artists.
Not every artist will see the same cash flow, and the biggest ones have the most power, but up-and-comers need the exposure that streaming provides. Despite the bad press generated by the departures of Young, Mitchell and others, experts surmise that, ultimately, Spotify will “be fine” in the long run.
Ola Sars, founder and CEO of B2B music streaming company Soundtrack Your Brand, told Yahoo Finance during a recent interview that other media giants from YouTube (GOOGL) to Facebook (FB) have gone through their own public reckonings when it comes to platform scrutiny — and have come out relatively unscathed on the other side.
“I personally don’t think that paying subscribers will leave a platform because there’s one program that is being disputed…[Spotify] has been through this before, so has all of the other media platforms, and consumers kept paying the bill,” the executive said.
“This is probably not the only situation where certain artists don’t like other types of content…this will be day-to-day business for Spotify [and they will handle] it like any other media company moving forward,” he added.
Alexandra is a Producer & Entertainment Correspondent at Yahoo Finance. Follow her on Twitter @alliecanal8193
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